Michael Yardney produces yet another interesting article for the Property update where he devotes a few lines to build up the rivalry between Sydneysiders and Melburnians. Quite true actually; Sydney will contest with Melbourne over the taste of coffee, weather, sports venues and what not. Let me however come to the central point the article speaks on- priorities of the buyers in two capital cities while hunting for houses.
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Sydney: The Cynosure Of Global Property Investment
Aidan Devine for the website Your Investment Property talks about Sydney’s growing prominence in the global residential property market. Having quietly fancied Sydney’s chances since last decade, I feel vindicated by Sydney’s strong show. Investors in Hong Kong, China, Russia, among others are picking the harbour city ever so frequently to park their money.
Sydney High On Momentum, Reveals ANZ Bank Data
Sydney has registered smart figures for more than one niche of property market performance. Michael Yardney for the Property Update reveals that it has topped the chart for maximum rise in trend home prices yet again. Its figures of 12.2% rise (year/year) is decidedly higher than that of Melbourne (8.2%), its closest competitor (courtesy ANZ Bank data).
Sydney is also doing phenomenally with auction clearance rates, posting 79% clearance for the week ending 3rd November. This is a tad lower than the +80% clearances Sydney has been posting of late but quite good nevertheless. Even the number of auction sales have risen sharply for the harbour city.
You can read the original article here.
What in your opinion is the reason for Sydney’s rise- paucity of available land, law of averages, or something else?
Borrower Demand Crossing Unscaled Peaks
Strong competition amidst lenders and an environment of low cash rate have together brought borrower demand towards previously unscaled peaks. An article on the website rebonline.com.au states that AFG, a premier mortgage broking company, has already crossed the $4 billion mark in home loans for the month of October.
The exact figure of $4.057 billion is 12% higher than $3.62 billion recorded in the month of September.
NSW’s home loan figures have increased by 10.9%- this is higher in terms of percentage increase when compared to Western Australia but is lower than South Australia’s percentage hike.
Another trend worth noting is the impact of grant withdrawal for First Home buyers. It has resulted in distinctly lesser applications from First Home buyers.
You can read the original article here.
First Home Buyers In NSW Eyeing Investor’s Tag
One of the most reliable (and reputed) property comparison websites, finder.com.au, feels that the first home buyers (FHBs) in Western Australia will set the tone of property investment for their interstate rivals. As many as 90% of Western Australia’s first home buyers have set property purchase as their New Year resolution. They are a fiercely resolved lot and their desire to buy “interstate” may make life difficult for their peers in other states.
Capital City Rental Yields Pay The Price Of Value Growth
If the value of your home shoots up from $500,000 to $550,000 and the rent you ask for it remains the same, what gets eroded in the process is called rental yield. You know the grind. Cameron Kusher for the property Update suggests that gross rental yields in capital cities are expected to fall further in near future with home value growth decidedly outperforming rental growth.
