The weekend Sydney Morning Herald had a cover story article about the future population of Australia, depending on the choices the government may make over the coming years. It ranged from a reduced population of 17 million all the way up to 50 million if immigration were increased from the current 70,000 per year to over 130,000 per year. It gave various statistics as to water usage, land usage, the proposal that we would have to build the equivalent of 90 new Canberra’s to house all our new countrymen! Being a relatively new import myself, I have come across a range of reactions from those born and bred here. Many hate the idea of a massively growing population, as they state that part of Australia’s charm is the fact that there is space, and the cities are liveable (ever been to LA lately?!), while others see the economic benefits of a larger population – we could realistically have 3 internal airlines for instance if there were over 25 million of us!
Anyways, I guess we all have an opinion and mine was very much formed by attending a workshop by John McGrath, who runs Sydney’s most prestigious real estate agency. He was perhaps one of the most impressive speakers that I have heard – very knowledgeable, insightful and charismatic (I haven’t met too many RE’s like that!). One of the questions he addressed (this was 6 months ago) was “Are Sydney property prices over-priced?” His answer, though simple, struck a chord with me and I felt he summed it up fantastically. To paraphrase:
“Australians bemoan the fact that Sydney prices are so high. The fact is, by Australian standards they may well be but by world standards, Sydney is still incredibly inexpensive”. The end!
I am fortunate to work for an overseas airline and I get first-hand experience of different countries and cities and see them change over time. One of my favourite examples is Atlanta, Georgia in the US. It held the Olympic games in 1996 and although they weren’t considered a resounding success (will anyone ever do it as good as Sydney?!) the profile of the city changed during the closing years of the 90’s. CNN and Coke both had their headquarters there and that was basically its claim to fame. The games gave it a stage on which to shine and although it didn’t do the best job, it was good enough to propel it to become one of the most influential inland cities in the states. Huge corporations relocated, as Atlanta is considered to be in the sunbelt of the US and demographics are changing that many people both here and in the US prefer to live in warmer climates. The city underwent a renaissance and it now has the busiest airport in the world (handles over 80 million pax a year!!!), has become a medical super-centre, it’s colleges now attract students worldwide and it has simply grown a bit of muscle.
I believe Sydney has an even brighter future. It has a multi-cultural and multi-lingual workforce. It has perhaps the most beautiful setting in the world (on a par with Cape Town and San Francisco), by world standards it is perceived as safe and most importantly, it is inexpensive. Many companies that used to base their S.E. Asian operations in the big three Asian cities of Singapore, Hong Kong or Tokyo are now choosing Sydney. Why? Take a look at any property website that deals with those cities and it is crystal clear. Sydney can speak all Asian languages, it is in a stable country (Hong Kong has suffered since being handed back – even if it’s only perception) and it has business friendly policies (open to debate!).
As someone who has lived here for nearly 4 years, in that short time, I have seen Sydney begin to take it’s first tentative steps onto the wider world stage. It’s often been described as brash and garish – but look at it as Sydney’s pubescent period! It’s starting to get itself a name on the map. More performing artists now visit than they used to, more international companies are choosing Sydney over the Asian cities that have all sorts of “what-if” questions hanging over the longer-term financial and social structures. Australia’s economy has been the best in the world and whatever political persuasion you have, the government has done a pretty good job overall.
John McGrath went on to say that as we head into this century there will be two diminishing commodities that will be irreplaceable and once used, they will be gone. Those commodities are cheap sources of fuel and prime land. Neither can be created. While Australia will suffer with cheap fuel sources, Sydney at least has one of those irreplaceable commodities – prime land. Very, very few cities in the world have a setting as conducive to the lifestyle we enjoy in Sydney. You can’t make another harbour or northern beaches with a world-class city nearby! I own properties in London but I was unable to afford to buy them in prime land areas by the river or in some of the hillier suburbs. A two roomed unit overlooking the Thames river will normally cost you somewhere between A$3-4.5 million. You can still by in Manly, Coogee and other suburbs for well below that price, and they are likely to be larger.
So, even though at this point of the property cycle, we may not be inclined to buy, for those that are able to in future, Sydney (more so than any other Australian city) needs to be viewed as an international commodity – not just a local one. And if the government does change its immigration position and the general population grows, the scarcity factor of prime land will only ever escalate. If Australia is still thought of as the lucky country, then I consider myself to be very fortunate to live in the luckiest city!
Note: please don’t take offence if you live somewhere else – I just love Sydney and am biased!!!
Anyways, I guess we all have an opinion and mine was very much formed by attending a workshop by John McGrath, who runs Sydney’s most prestigious real estate agency. He was perhaps one of the most impressive speakers that I have heard – very knowledgeable, insightful and charismatic (I haven’t met too many RE’s like that!). One of the questions he addressed (this was 6 months ago) was “Are Sydney property prices over-priced?” His answer, though simple, struck a chord with me and I felt he summed it up fantastically. To paraphrase:
“Australians bemoan the fact that Sydney prices are so high. The fact is, by Australian standards they may well be but by world standards, Sydney is still incredibly inexpensive”. The end!
I am fortunate to work for an overseas airline and I get first-hand experience of different countries and cities and see them change over time. One of my favourite examples is Atlanta, Georgia in the US. It held the Olympic games in 1996 and although they weren’t considered a resounding success (will anyone ever do it as good as Sydney?!) the profile of the city changed during the closing years of the 90’s. CNN and Coke both had their headquarters there and that was basically its claim to fame. The games gave it a stage on which to shine and although it didn’t do the best job, it was good enough to propel it to become one of the most influential inland cities in the states. Huge corporations relocated, as Atlanta is considered to be in the sunbelt of the US and demographics are changing that many people both here and in the US prefer to live in warmer climates. The city underwent a renaissance and it now has the busiest airport in the world (handles over 80 million pax a year!!!), has become a medical super-centre, it’s colleges now attract students worldwide and it has simply grown a bit of muscle.
I believe Sydney has an even brighter future. It has a multi-cultural and multi-lingual workforce. It has perhaps the most beautiful setting in the world (on a par with Cape Town and San Francisco), by world standards it is perceived as safe and most importantly, it is inexpensive. Many companies that used to base their S.E. Asian operations in the big three Asian cities of Singapore, Hong Kong or Tokyo are now choosing Sydney. Why? Take a look at any property website that deals with those cities and it is crystal clear. Sydney can speak all Asian languages, it is in a stable country (Hong Kong has suffered since being handed back – even if it’s only perception) and it has business friendly policies (open to debate!).
As someone who has lived here for nearly 4 years, in that short time, I have seen Sydney begin to take it’s first tentative steps onto the wider world stage. It’s often been described as brash and garish – but look at it as Sydney’s pubescent period! It’s starting to get itself a name on the map. More performing artists now visit than they used to, more international companies are choosing Sydney over the Asian cities that have all sorts of “what-if” questions hanging over the longer-term financial and social structures. Australia’s economy has been the best in the world and whatever political persuasion you have, the government has done a pretty good job overall.
John McGrath went on to say that as we head into this century there will be two diminishing commodities that will be irreplaceable and once used, they will be gone. Those commodities are cheap sources of fuel and prime land. Neither can be created. While Australia will suffer with cheap fuel sources, Sydney at least has one of those irreplaceable commodities – prime land. Very, very few cities in the world have a setting as conducive to the lifestyle we enjoy in Sydney. You can’t make another harbour or northern beaches with a world-class city nearby! I own properties in London but I was unable to afford to buy them in prime land areas by the river or in some of the hillier suburbs. A two roomed unit overlooking the Thames river will normally cost you somewhere between A$3-4.5 million. You can still by in Manly, Coogee and other suburbs for well below that price, and they are likely to be larger.
So, even though at this point of the property cycle, we may not be inclined to buy, for those that are able to in future, Sydney (more so than any other Australian city) needs to be viewed as an international commodity – not just a local one. And if the government does change its immigration position and the general population grows, the scarcity factor of prime land will only ever escalate. If Australia is still thought of as the lucky country, then I consider myself to be very fortunate to live in the luckiest city!
Note: please don’t take offence if you live somewhere else – I just love Sydney and am biased!!!
) but not your local museum, or the Gold Coast. 
