06 Feb Sydney Property Market Analysis 2017
Sydney Property Auction Results Saturday 4th February 2017
|Source:||Australian Property Monitors|
With the property market finishing so strongly in 2016 there was much talk from property commentators about a softening in the market in 2017. While we are only in the second week of February, we are not yet seeing any signs of the Sydney property market softening.
Why is this?
Well, the fundamentals remain the same. In blue chip areas on the lower north shore, eastern suburbs and inner west we have more buyers than we have sellers. This demand / supply chain keeps prices high and will continue to do so while this is the case. These areas do not have a lot of new buildings being built so there is a finite amount of properties.
Admittedly, events such as the election of the new US President and Brexit have caused global uncertainty, however at this stage these events have not affected our local real estate market.
Areas where there has been a lot of new apartment development and off-the-plan sales will be more susceptible to price downturns. This is because the banks are tightening their lending criteria and China is making it increasingly difficult for their nationals to take their money out of the country. So we may see some forced selling of off-the-plan apartments.
Is this an opportunity to buy a forced sale investment apartment?
Well, it depends on the area and the price of course! Certain parts of Sydney have had a glut of apartments built and in these areas we believe the fundamentals will remain the same – a lower rental yield due to the competition and limited capital growth. So our advice is to be careful where you buy your property or give us a call if you need help with the buying process.