While writing an article for the Property Update, Pete Wargent uses his inimitable style to shed light (in strictly layman’s terms) on the three or apparently four phases of the property cycle. He also debunks the myth of an impending burst of the property bubble.
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Interest Rates to Remain Unchanged
The Australian government expected reduced cash rate to bolster the ailing construction industry and real estate. In many ways, they were proven right and in the last year we have had many reasons to be joyous in this regard. Sydney is passing through its best real estate phase in a long time and the reduced cash rate has a lot to do with it.
Narrowing Down Location of Property Purchase
Real estate rules are not the same for those investing in properties to build a portfolio and those investing in it to live. A place, most scenic and captivating, can be great for you if you want to buy a property and live in it but its scenery and blissful calm may not make it an enticing investment purchase.
Sydney Displays Robust Clearance Rates
Sydney has met the oncoming autumn season on an even keel, reciprocating its warmth and robustness beautifully. For the second week on a trot, its auction clearance rate has gone past the coveted 80% mark. Critics could say it was a skewed figure had the listings been too few (as is the case with Adelaide) but Sydney auctions saw 596 properties coming under the hammer. Every reason to be ebullient then!
Properties Available for Sale Take a Hit In Sydney
Number of properties up for sale in Sydney has plummeted by 17% over the last year. This brings the listings at par with the 2008 figures. An article on the website Smart Property Investment throws light on the subject.
Only 20,080 properties are listed for sale presently and this can drive the prices beyond the ceiling. Taking cue from Jan 2009-Jan2010 performance when house prices had spiked by 19.6% despite higher number of listings, investors can expect some serious capital growth in Sydney.
The drop of 17% in number of available properties is bound to make news as Melbourne, an accepted yardstick for Sydney’s performance, has only conceded 5.4% in its listings.
You can read the original article here.
Do you think undersupply might make housing unaffordable in Sydney’s case?
2014 Is All Out to Woo Property Investors
The year 2014 can bring really good tidings for the property market, writes Peter Kouilzos for the website realestate.com.au. Opportunities for property investors won’t come into being due to any extraordinary capital growth but will arise out of the present environment of low interest rates.
