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From: Samuel Riley
Here's a Sydney property market review by John Mcgrath (Director of Australia's most successful agency) Does everyone agree with his opinion? any other thoughts to add? From what I can see judging by what he is saying. The Sydney property market is NOT overvalued relative to current market conditions.
Have fun
Sam
MARKET REVIEW
by John McGrath
As we move past Easter the first selling season of the year is behind us providing an opportunity to review the market as it stands in 2001. And the news is positive for those who have managed to snare the right property & somewhat disappointing for those hoping that a market correction was upon us. In fact our evidence suggest that the market in the quality residential precincts throughout Sydney is up about 5% to 7% this year over last year's closing figures.
And there are three reasons for this. First are the lowering interest rates (which are at their lowest for 30 years right now) which assist the property market in two ways. Put simply they make it cheaper to borrow on property (currently at about 5.6%) & provide less incentive to leave your money in the bank earning the low yields now on offer.
The second factor driving the market is the volatility of the share market which has seen many small (& large) players with burnt fingers taking their investment dollar to a more secure option - namely bricks & mortar.
And finally the low Australian dollar has certainly created a buying spree for offshore investors (especially ex-pats) taking advantage of the exchange rate & buying our property at what amounts to half price in many instances. Australian ex-pats in London, Singapore, Hong Kong & New York lead the charge with about one-third of the properties our company sold above AUD$1 million last month selling to offshore buyers.
I predict ongoing growth in select suburbs throughout the year as many cashed up purchasers dive back into property both from a lifestyle & an investment perspective. A few areas to watch for growth are Maroubra, Leichhardt, Marrickville, Lane Cove, Naremburn & Dee Why.
John McGrath
Here's a Sydney property market review by John Mcgrath (Director of Australia's most successful agency) Does everyone agree with his opinion? any other thoughts to add? From what I can see judging by what he is saying. The Sydney property market is NOT overvalued relative to current market conditions.
Have fun
Sam
MARKET REVIEW
by John McGrath
As we move past Easter the first selling season of the year is behind us providing an opportunity to review the market as it stands in 2001. And the news is positive for those who have managed to snare the right property & somewhat disappointing for those hoping that a market correction was upon us. In fact our evidence suggest that the market in the quality residential precincts throughout Sydney is up about 5% to 7% this year over last year's closing figures.
And there are three reasons for this. First are the lowering interest rates (which are at their lowest for 30 years right now) which assist the property market in two ways. Put simply they make it cheaper to borrow on property (currently at about 5.6%) & provide less incentive to leave your money in the bank earning the low yields now on offer.
The second factor driving the market is the volatility of the share market which has seen many small (& large) players with burnt fingers taking their investment dollar to a more secure option - namely bricks & mortar.
And finally the low Australian dollar has certainly created a buying spree for offshore investors (especially ex-pats) taking advantage of the exchange rate & buying our property at what amounts to half price in many instances. Australian ex-pats in London, Singapore, Hong Kong & New York lead the charge with about one-third of the properties our company sold above AUD$1 million last month selling to offshore buyers.
I predict ongoing growth in select suburbs throughout the year as many cashed up purchasers dive back into property both from a lifestyle & an investment perspective. A few areas to watch for growth are Maroubra, Leichhardt, Marrickville, Lane Cove, Naremburn & Dee Why.
John McGrath
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