15% to 20% increase - Sydney

b7277 said:
Came across this article this morning. One investor predicts Sydney house prices to skyrocket by 15% to 20% over 2014. what are your thoughts on this.

http://www.propertyobserver.com.au/...il&utm_term=0_a523fbfccb-d8f38b256a-245391041
Click to expand...

Sounds like its getting out of control - that would put the median at an unsustainable 800k - who can reasonably afford this - I'd be interested to see what would happen if they apply LVR restrictions - another nail in the coffin for ford home buyers.
 
Interesting you say that. The market is a function of policies as well as demand. Or you could say, demand is driven by policies.

Policies in favour of property market
High LVR
Low interest rates
CGT discount
Negative gearing
FHB

Policies against property market
Stamp duty
Land tax
LMI
Stringent rental laws

Most people complain about negative gearing and FHB. Would I be more inclined to buy if the government abolished stamp duty and land tax and in return the market loses negative gearing and FHB?
 
Predictions are just that

I like your post. It is funny but when the Chief Economist cannot get their predictions right with all the information have access to, one only wonders how any observer's predictions can hold any value.

Sydney prices have certainly been on the rise and with the First Home Buyers responsible for less than 7% of the demand, investors are clearly seeing value in this market.

There is a lot of money pouring in from overseas and interstate investors ho understand very little of the market and the majority of investors in Sydney, invest in the local market as they cannot trust anything else.

Property is a strong asset for more than just the growth factor, but the Sydney market is seeing a surge after a long dry spell. The low interest rates are responsible for much of the money held in term deposits being reinvested in this asset class.
 
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Even though i have got some properties in sydney, recent run and the future predictions makes me deeply worried. I hope the predictions dont come true, otherwise we might have a hard landing like early 2000's. 18 months of growth in early 2000 equates to 10 years of no growth.

Lots of overseas especially chinese investors have got truck load of cash and killing the sydney market. Bubble will burst, hope we have a sustained growth, think 800K median price in sydney when most of the economy is in trouble.
 
I think before people buy in Sydney they need to take a holiday up to Brisbane to look at what their money can buy up here. That might help them see just how overpriced sydney is.
 
Similar article here:-

http://smh.domain.com.au/real-estat...ices-set-to-rise-strongly-20130917-2txbh.html

"With tales of properties selling for staggering prices, Sydney home owners think they are sitting on gold, and one expert agrees.

The head of SQM Research, Louis Christopher, is predicting bullish price growth of 15-20 per cent for Sydney in 2014.

''It will be potentially a one-in-50-year event next year,'' Mr Christopher said. ''Currently we are seeing price growth of 9-12 per cent for 2013 and we think that is going to accelerate in 2014.''
 
If you asked an American do you know where Sydney is, they will ask "is that near Australia?"

If you asked an American do you know where Brisbane is, they will ask "what's that?"

So not sure how apt it is to draw comparisons between the two cities.
 
The problem isn't so much Australian investors but foreign investors and in particular Chinese investors. The simple solution is for the government to restrict/block investment from China and any other countries which do not allow Australians to buy in their countries (as non residents).
 
ndpjai said:
Lots of overseas especially chinese investors have got truck load of cash and killing the sydney market. Bubble will burst, hope we have a sustained growth, think 800K median price in sydney when most of the economy is in trouble.
Click to expand...

This is the problem. The trouble is though it is not politically correct to single them out so the government and RBA won't dare take action when they should. The outcome won't be pretty for Australia.
 
GreenMedallion said:
The problem isn't so much Australian investors but foreign investors and in particular Chinese investors. The simple solution is for the government to restrict/block investment from China and any other countries which do not allow Australians to buy in their countries (as non residents).
Click to expand...

don't we have the FIRB?
 
Generally when OS investors descend on mass into a market , they usually over pay and get it wrong. The locals unload and then buy back a few years later at a discount . Has happened in the past and will happen again.

Personally I 'm not aware of it happening en mass and it's only happening in a couple of select markets in Sydney . Most of what some people seem to be paranoid about is is Australians of Asian Decent buying . Nothing to stop them doing that . I'm an immigrant myself. We just bought our new PPOR off an Australian of South Asian Decent . No problems.


cliff
 
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