Ok, we’ll be the first to admit that our property market has slowed slightly. However, there’s a fair distinction between the doom and gloom that seems to be doing the rounds amongst media circles and how the actual market is performing.
We can’t comment too much about the rest of Australia, but Sydney is experiencing a soft landing but remains fragmented. What this essentially means is we’re experiencing what many experts class as a “gentle slump. Market fragmentation’s and soft landings historically don’t last long, and the expectation is that this will likely be the case with Sydney.
According to CoreLogic, there’s plenty be positive about, particularly in the long run:
• Underlying demand is well ahead of supply;
• The rental market is tightening;
• International interest from migrants, investors and tourists is still strong;
• It is one of Australia’s 2 super star cities;
• Strong economic growth and jobs creation is leading to population growth and strong demand for property.
Award winning Buyers Agent Dona James Wells, commented “Of course when you talk about “the Sydney property market” you really have to take in to account that it is not a uniform real estate market – some areas will vastly outperform others.
“With 40% of our overseas migrants settling in New South Wales, (particularly in Sydney) and Sydney punching above its weight in jobs creation, property price growth will be more consistent in areas closer to the CBD, while growth in regional areas is likely to fall behind due to fewer growth drivers.”
At the end of the day, there’s no sugar coating it – the Sydney property market has suffered a slight decline. But given we’re experiencing a “gentle slump” with many lead indicators pointing towards positive growth, we expect the market to be roaring again sooner rather than later. That’s why we think if you’re going to buy – now’s probably the best time.