Sydney property market 'doing its thing!'

Data released by SQM Research today revealed a 12.3% increase in Sydney residential property listings over the past year. The higher stock levels are no doubt contributing to downward pressure on prices as Sydney’s annualised growth rate slowed to 12.2% from 18.9% three months ago. Some vendors took advantage of strong price gains and banked their profits before the end of the financial year, while others were perhaps nervous of the looming interest rate rises with some pundits forecasting up to 8 rises over the next 2 years, which could increase rates by a further 2%. 

Another factor pushing up stock levels is the estimated 22% reduction in Chinese investment into real estate in FY2017 to $18.5b, from a high of A$23.8b in FY2016, and $18.4 billion FY2015. 

One of the knock-on effects of rising stock levels, is an increase in the time it takes to sell a property. For the first time in years, we have some apartments left to sell at the completion of construction, rather than them all being sold off the plan. WE have new completed property in Newtown, Drummoyne and Strathfield, all of which are finished and ready for you to move into straight away. For information click here...

Despite the slowdown in capital growth, Sydney saw rental income rise by 4.5%, which could be attributed to the increased net migration in NSW. 

This my friends is the economy "doing its thing", with the property market slowly cooling, rental yields slightly rising and not a bust in sight!

Enjoy your weekend!