Sydney Investment Property - Where are we in the cycle?
29 Jul 09
Sydney Investment Property - Where are we in the cycle?
John McCormack, CEO of Starr Partners has heralded the return of a more positive outlook for property in the Greater West and North West of Sydney. “Our offices are reporting more interest from Investors that have waited out the “economic crisis” and market downturn are now wanting to put their investments into a more secure vehicle like residential property”.
The Australian Property Directions Survey by the Australian Property Institute summarised the views of a range of property investment experts on the position of the Sydney property market in the property cycle.
Residential property is seen as being at the bottom of the cycle in 2009.
In 2010, residential property in Sydney is viewed as commencing the next upswing of the cycle.
Sydney's median house price increased by 0.72 percent in the three months to November 2008 according to data released by Residex.
This is a welcome change for the Sydney housing market as Sydney's median house price had fallen by 3.32 percent over the preceding 12 months.
For the second half of 2009, the New South Wales residential housing market is in chronic undersupply with underlying demand for around 41,000 dwellings and a completion rate of little more than 16,000.
Rental demand remains very strong despite the fact that property ownership has become more affordable for people in all walks of life due to lower interest rates and the First Home Owner Grant.