Growth of a country is not the growth of its flora and fauna; it is measured by the rise in its living standards and the sustainability of its economy, among other things. Over a smaller radar, the same rules stand true when you take a look at a city or a suburb. There was a time in the past when the outer suburbs and regional areas were in great demand. In fact, tourists ventured out to grab their investment pies in the regional hotspots. Things have changed and changed a great deal.
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Sydney Crosses 80% Auction Clearance 14 Times In Last 16 Weeks
For a few weeks even the die-hard loyalists of Sydney thought that the high auction clearance rates were a flash in the pan. When the rates continued to be impressive, they became a little optimistic, desperately trying to believe in what they were seeing. Today, they are a vindicated lot. For 14 of the last 16 weeks, Sydney has posted higher than 80% clearance rates and this in itself is a record.
Sydney Powers Combined Home Value Growth For Capital Cities
Sydney and Melbourne (and precisely in this order) are leading the recovery of the Australian property market. Capital city home value growth, many thanks to them, has shown a combined hike of 7.9% over the last year.
This however is not a barometer for the entire country and the super performance of Sydney alone has masked the snail-pace growth in many major areas. Canberra remains in doldrums and Perth and Brisbane are flattering to deceive most of the times. So to cut the story short, Sydney it is at the helm of the affairs.
All You Want To Know About The Sydney Property Market
In an article for the website Property Update, George Raptis offers a few brilliant insights into how the property cycle will move towards its peak and what may be the immediate and distant implications of the apartment boom.
Sydney Posts 4.3% Housing Value Growth
If I were to use the racing jargon, I would say that Sydney is simply cantering away from its rivals. Recording a 4.3% growth in median house prices for the September quarter, the harbour city has well and truly raised its tether and also raised the bar for its peers. Toby Johnstone in an article for The Sydney Morning Herald observes the trend.
Sydney’s Performance Is Not A Barometer For Other Capital Cities
The property market is on recovery mode but rise in median house prices or capital city value growth should not be made an occasion for celebration just yet. Michael Yardney for the Property Update mentions how the 2.2% growth in median housing prices this quarter is quite moderate and even below the last quarter’s performance by 0.3%.
The average capital city value growth is not a true reflection of the country’s property market either. It’s just that Sydney to a very large extent and Melbourne in a smaller capacity have overcompensated for the patchy performance of other capital cities; and hence the growth.
Consumer sentiment, though reported otherwise, is still sloppy and there is sparse growth in household income. Recent oversupply in Sydney may impact rental yield negatively but the capital city itself (along with Melbourne) should continue to do well.
You can read the original article here.
Do you think Sydney will beat Melbourne flat in terms of value growth over next few years?
