Sydney’s middling properties, ranging from $500,000 to $1.5 million, could benefit most in the year 2013. Larry Schlesinger for the Property Observer says that they could rise as much as 10% in prices, outperforming the First Home Buyer segment and the Prestige Market.
Sydney property market should overall exhibit a growth of close to 5%. Consumer sentiment sub-index for “time to buy a dwelling” has recorded a leap of 11.2%, closing at 142.7
There are three prime reasons for it
- Buyer confidence at its peak since the GFC
- Low interest rates
- High auction clearance rates
All this should drive dwelling prices in mid-market segment higher.
You can read the original article here.
An article on the website realestate.com.au says that the Reserve Bank of Australia is considering cutting down the interest rate by a few more basis points to strengthen the low-growth areas. Dwindling Australian dollar, shaky import figures and sub-par performance of GDP is making the RBA think along these lines. Economists agree that the low rate of inflation gives the leverage to RBA to do so.
Property market moves through cycles. You may think- Hang on! We aren’t being told this for the first time. No you aren’t. I am just taking this opportunity to reiterate the degree of truth in this statement. The market moves through crests and troughs and times of trough do not change overnight into peak or boom times. The graph moves gradually.
The Australian Finance Group (AFG) has processed mortgages worth $3.6 billion in May. An article on the AFG website reveals that the May figures are a neat 13% above the $3.2 billion recorded for April. It is worth noting that mortgage sales in April had already smashed all past records and so further improvement in May is certainly a cause for delight.
In times when Australians are opting for the inner-city experience over the idyllic life of the suburbia and choosing balconies instead of backyards, ‘Walkability’ has certainly become a prime criteria for selecting homes. Michael Yardney for the Property Update asserts that homes closer to amenities, transport and healthcare facilities will be among the more sought after.
The Australian property market has never been in better shape since the meltdown and this may just be the best time to secure or expand your investment portfolio.
