Sydney property set to be back on the boil by 2022

Domain’s economists recently announced that Sydney’s property market has rebounded more strongly than expected on the back of recent interest rate cuts and price growth over the next 12 months is expected to be between five and 10 per cent.

It isn’t too surprising that Sydney has bounced back quicker than expected. In addition to reduced borrowing costs, lending criteria has also eased and the Federal Election earlier in the year secured negative gearing tax incentives for investors with all of these factors contributing to improved market sentiment.

  • Sydney property continues to outperform other capital cities due to its strong population growth, relatively low levels of unemployment and abundant job prospects.
  • Investor appetite also remains strongest in Sydney with recent housing figures showing that 32% of mortgage demand in NSW is from investors – much higher than that of any other state.
  • According to the latest CoreLogic figures, Sydney is leading the national property recovery, along with Melbourne.
  • Median property values in Sydney jumped 1.7% $805,424 since September.
  • 3.5% price growth in Sydney over the last quarter.
  • Further price growth in Sydney is set to be fuelled by a drop in supply of new homes, with building approval numbers down -25.9%.

For investors, the news is even better, with the potential to reap capital growth again in a relatively short period of time – providing they pinpoint growth locations and snap up property before further price hikes.

This is something we didn’t expect to see again for a long time.

Improvements to Sydney’s transport and infrastructure can dramatically reposition a suburb’s potential and must be factored into decision-making.

*source The Real Estate Conversation

Posted in Buy, Latest news, News on 21st October, 2019