Sydney property reaches its turning point as APRA acts and rates cut again
Market comment: Sydney property reaches its turning point as APRA acts and rates cut again
There's been a recent ‘bounceback' in Sydney's house prices, albeit a rather small one. But first, look back at the first three months of this year that saw prices fall by 3.9 per cent. Prices in March were nearly 13 per cent below the peak of June 2017, so the market was searching for a bottom. There are signs that ...
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An election, a rate cut – and a bottom in sight
Market comment: An election, a rate cut – and a bottom in sight
The Sydney property market has been given some much-needed encouragement by the recent federal election result and by the Reserve Bank's cut to its cash rate. For such an important economic sector that has most recently been best known for a record price fall, this couldn't have come at a better time. At its June meeting the RBA did what ...
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A Coalition victory, an unchanged cash rate, and signs of stabilisation
Market comment: A Coalition victory, an unchanged cash rate, and signs of stabilisation
An election can be a real game-changer for the Sydney property market. Or it can simply be a sign that things will continue much as they are which can also be significant. In this year's election the Coalition's victory means the government will not be making any major policy changes with regard to housing, bringing a sigh of relief to ...
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Prices down, construction down, even interest rates may finally come down
Market comment: Prices down, construction down, even interest rates may finally come down
So, just how bad is the Sydney housing price fall? So far, it's a good example of the old adages: “What goes up must come down”, and “The bigger they are, the harder they fall”. We enjoyed the ride up, but the ride down isn't much fun. It's notable that Sydney has had the biggest yearly slump of all Australian ...
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Property prices await elections, a rate cut, and the return of investors
Market comment: Property prices await elections, a rate cut, and the return of investors
Most property cycles in recent years have seen the Sydney market recover pretty quickly after a period of price correction. For a time, people don't want to sell their houses in a falling market and buyers hesitate in case the prices are going to go lower, so the whole market turns quiet before it regathers, and then the next upwards ...
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Prices fall further and so might interest rates
Market comment: Prices fall further and so might interest rates
At its February meeting the Reserve Bank left rates just where they've been for what seems like years – and it has been years, going on for three of them. This has caused a lot of comment among members of the financial fraternity, but even the fiscal experts disagree about where interest rates should go next. "People with principal ...
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The bottom of the market could be in sight – just maybe
Market comment: The bottom of the market could be in sight – just maybe
2018 is over and 2019 is underway. This much we know, but the future direction of the Sydney property market in this new year is anything but known. The last year ended with prices still falling across the Sydney area after a record ten per cent drop, and there were signs the new year would bring more of the same ...
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Chicken Little meets the RBA and prices fall
Market comment: Chicken Little meets the RBA and prices fall
Chicken Little might have been right – the sky is indeed falling. We've seen Sydney home prices go up, and up and further up, until they reached levels that can only be described as ‘sky high'. Now, for several reasons we'll discuss in more detail later, they've plummeted. Will house prices ever recover? Eventually, yes, but probably not in the ...
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2018: A year to remember for all the wrong reasons
Market comment: 2018: A year to remember for all the wrong reasons
The Sydney property market is well and truly back in the news, but unlike just two years ago it's now all about price falls rather than soaring property values. We're now heading for a new 28-year record annual drop that will eclipse the fall in 1990 when prices tumbled by 7.9 per cent annually. How times have changed. Restrictions ...
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Affordable housing can be a reality, even in Sydney
Market comment: Affordable housing can be a reality, even in Sydney
Housing finance figures from the Bureau of Statistics confirm that investors continue to depart the housing market. Unlike earlier periods of investor disinterest, this time around owner-occupiers are also taking out fewer mortgages than they were a year ago. Despite interest rates being at record lows, Australians aren't choosing to to buy or invest in property nearly as much ...
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Spring is here with early rewards for property buyers
Market comment: Spring is here with early rewards for property buyers
The slowdown in real estate activity continues across Sydney, but there are signs the market is quickly adjusting to the new realities confronting buyers and sellers in a changed property environment. Harry Triguboff, owner of Meriton and one of Australia's richest men, told ABC News that Australia is in an apartment development slowdown: "I'm experiencing [the downturn] more than anyone ...
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That sinking feeling as prices head south
Market comment: That sinking feeling as prices head south
It's a bit like watching a sinking ship. The prices of Sydney property are going down, and from the surface we can see the hull going under. But how low it will go before it finally settles is hard to predict, and property analysts are coming up with a variety of forecasts. As we reported last month, the ANZ Bank ...
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Sydney property sees tighter credit, falling prices, rising mortgage rates
Market comment: Sydney property sees tighter credit, falling prices, rising mortgage rates
The end of the 2017-18 financial year has come with a wealth of statistical data about house prices, and the property market experts are poring over the numbers to make their predictions for the balance of 2018 and beyond. Their conclusions are broadly that house prices in Sydney have dropped about four to five per cent since their peak ...
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What went up has now come down, but for how long?
Market comment: What went up has now come down, but for how long?
To read reports in the daily press, it sounds like some sort of disaster has befallen the Sydney property market: “Auction clearance rates down, asking prices down, times on market up, investor lending falls,” and if we weren't comparing our present numbers to those of the recent three years of boom conditions we might be more concerned. Which is ...
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Sydney property sets world record, then steps back
Market comment: Sydney property sets world record, then steps back
Interesting news from Domain: Australian house prices recently set a world record after gaining 6556 per cent in 55 years, according to calculations from the Bank of International Settlements and referenced by UBS, with growth averaging 8.1 per cent each year during that period. The report added that prices had doubled every nine years, and that it was the longest ...
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A tale of trillions, softening price rises and intergenerational theft
Market comment: A tale of trillions, softening price rises and intergenerational theft
In case you've ever wondered just how much Australia's housing market is worth, a new report from the Australian Bureau of Statistics (ABS) tells us – a whopping $6.87 trillion. In fact, just between September and December 2017 it grew by almost $93 billion, but it's the details of that fourth-quarter that make for interesting reading. Even though the national ...
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Sydney property in 2018: no hurry, few worries
Market comment: Sydney property in 2018: no hurry, few worries
The gradual slowdown in the Sydney property market continues, showing few signs of any sudden acceleration that might indicate vendors are heading for the exits. In fact, vendors seem to be adapting well to easing prices and are adjusting their expectations accordingly. The Financial Review's Michael Bleby reported that discounts are rising and times on market are growing as key ...
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Sydney property enters the slow lane – for now
Market comment: Sydney property enters the slow lane – for now
In the ten years since our Market Comment began, it would be hard to find a single year without someone in the media mentioning a forthcoming ‘crash' of the Sydney housing market. Even if times are good, the doomsayers will often forecast a dire ending. And if times are bad, too often there's a focus on the negatives and warnings ...
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What’s going to happen to Sydney Property in 2018?
Market comment: What’s going to happen to Sydney Property in 2018?
As the new year gets underway and we start writing ‘2018' where ‘2017' used to be, Sydney property owners and would-be owners would naturally be interested to know what events will shape the city's property market over the next twelve months. We are once again reminded by concerns about property prices that property investments are always best viewed as ...
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Owner-occupiers step up as investors step back
Market comment: Owner-occupiers step up as investors step back
Over the past five years we've become used to investors dominating the Sydney property market, but new restrictions on loans to investors have decreased their previous levels of activity and have even started to influence property price rises. Cameron Kusher, senior research analyst at CoreLogic, says that at their peak in May 2015, investors accounted for 54.8 per cent of ...
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