Market Report – Summer
The new year starts strongly in the summer months
Looking back on what has been a blistering summer for Sydney-siders weather wise, the property market had less heat with slowed growth in most areas. As per usual, stock levels in late December lowered for the holiday season, with agents and vendors holding off the sale of their homes and units until the new year.
The start of 2016 has been encouraging for the Sydney property market with strong buyer activity, sales results and clearance rates of late, especially in the Eastern Suburbs. These positives can be attributed to a number of factors such as the RBA leaving interest rates on hold at a low 2% and the demand for quality stock higher than supply in the market. Whilst the market isn’t at the levels of growth we have seen in recent years, signs are pointing to maintained confidence from consumers.
What are your market expectations for the next 3 months heading into autumn?
We believe that the key phrase for autumn will be ‘slowed growth’ not ‘price drop’ despite the commentary from the media leading into 2016. Sydney as a market is too strong to suggest anything other than price growth, with increasing infrastructure, low interest rate and housing stock levels and rising employment statistics all influencing the inevitable growth to come.
The areas of Sydney that will see particularly high levels of growth will be the more affluent suburbs outside the city fringe with increased infrastructure and the lifestyle factor big draw cards for investors and home owners alike. The Eastern Suburbs are a prime example of this as people from near and far try to secure their slice of coastal heaven only a stone’s throw from the CBD.
As always, there are some outside factors that could have impact on the property market in the future. One factor has been Labour’s recent proposal to cut back negative gearing tax breaks which would be a disincentive for investors should it be implemented. Whilst we can’t see this materialising anytime soon, it will be interesting to see what happens as the government tables possible tax reforms.
It should be a colourful autumn real estate market for Sydney this year.
