Will the Sydney median house price reach $1 million by the end of 2015?

Will the Sydney median house price reach $1 million by the end of 2015?

  • Yes

    Votes: 48 38.4%
  • No

    Votes: 77 61.6%

  • Total voters
    125
Depends if you consider rapidly growing population and rising rich neighbours a norm also. Probably wasn't 50 years ago. Mind you American house prices have been increasing since 1500.
 
John Edwards from Residex has a pretty good track record, and so I respect his latest opinions as outlined here, provided for your consideration:

http://blog.residex.com.au/2014/09/...-market-update-2/?Cid=ResiNewsSept142GreyBlog

Cheers,
Alan

Thanks for sharing. The main point I take from that is:

"It is easy to overpay for a property at this point in time, and over payment will not be covered by increasing property values over the balance of this growth cycle. My word of warning, to those who are tempted to stretch themselves by borrowing more than they can afford is: don?t. This is not the time to do that. Buy a lower cost investment property and avoid the stress."

Solid advice.
 
If had to bet on the Sydney house prices I would say they will keep rising but around the middle of next year there will be a huge fall or correction. That is based on a number of things I have heard recently.
 
Last edited:
John Edwards from Residex has a pretty good track record, and so I respect his latest opinions as outlined here, provided for your consideration:

http://blog.residex.com.au/2014/09/...-market-update-2/?Cid=ResiNewsSept142GreyBlog

Cheers,
Alan

Thanks for this Alan. This does seem to be a very good summation of the current situation and good use of graphs and data.

Anyone trying to keep up with the Joneses may have their fingers burnt but the Joneses will be fine. The non-Joneses need to look elsewhere for bargains and I need to get cracking.
 
I have only just had a chance to print the blog from John Edwards and read it at leisure in the backyard on a wonderful Sydney afternoon :)

Definitely appropriate words of caution there and should be taken on board. Notwithstanding, after such an incredible 18 months or so in Sydney price growth, more than happy for a breather in the market with a few years of growth over and above inflation.

Excellent read, thanks for posting link

regards
 
I suspect that John Edwards's predictions of a slowdown in the short term could be pessimistic. There seems to be a lot of momentum in the market, and these things have a habit of running hot longer than you might expect.

But I also believe that his eight year prediction of 6% or more growth per annum in Sydney is optimistic. That's roughly double the rate of inflation off what is already a high price point.

Still, I guess we'll find out in 2022. :D
 
I suspect that John Edwards's predictions of a slowdown in the short term could be pessimistic. There seems to be a lot of momentum in the market, and these things have a habit of running hot longer than you might expect.

But I also believe that his eight year prediction of 6% or more growth per annum in Sydney is optimistic. That's roughly double the rate of inflation off what is already a high price point.

Still, I guess we'll find out in 2022. :D

Graemsay, you are exactly right. the article has two contradicting opinions.
 
Do other markets follow the Sydney market?

Also in regards Sydney is probably alot more populated than Perth, but Perth one day might reach Sydney population it is nowadays.

Newport 40 mins from Sydney CBD but first in line along the beach, does it rate similar to a Quinns/Alkimos ~40 minutes away. The median in Newport is around 1.3mill from memory. Will these suburbs one day end up like this?

Will a Belmont in Perth 15 mins roughly from Perth CBD 2nd in line towards the end of the river be similar to Ryde/East Ryde of Sydney same distance away to CBD otherside of the river 2nd in line towards end of the river?

Just my thinking as we know those that are close to the city/rivers or close to the beach are the ones that are the most expensive suburbs. Sydney shows that as does every other state (I know capt obvious)
 
From that link

As of today, Sydney?s median asking price has pushed past the $1 million benchmark. This figure looks at freestanding houses, which includes terraces but excludes townhouses.

In this morning's update, SQM Research?s Louis Christopher said that the median asking price for houses is now $1,005,800.

?Right now it would be impossible to purchase a free standing house in Sydney?s inner ring for under a million dollars, and will become increasingly difficult to purchase a free standing house in Sydney?s middle ring for under a million dollars," said Christopher.
 
That's asking price, not necessarily the actual median sale price. Not having access to Residex reports myself, how does your original prediction compare?

To work that out you'd need up to date sold prices.

APM has reported median sales prices over $1mil the last couple of weekends in Sydney (up from mid $900s a few weeks prior) but that doesn't include the entire market, which I expect would drag the median down.

A peek at some up-to-date vendor discounting would be useful.

There's still a year left in relation to the title of the topic though -- "by the end of 2015".

Lets see, eh?
 
Now up to $875.5K in October 2014 as per Residex index... http://blog.residex.com.au/2014/11/26/november-property-market-update/

Another 1% growth per month for the next 14 months would lift the Sydney median house price above $1 million in December 2015...

Residex-Sydney-Oct2014.png~original
 
It's over for sydney shadow, the hangover is on its way, the economy is on the turn, sure am glad I wasn't one of the suckers who's bought in a blue chip sydney suburb in the past 12 months.
 
It's over for sydney shadow, the hangover is on its way, the economy is on the turn, sure am glad I wasn't one of the suckers who's bought in a blue chip sydney suburb in the past 12 months.

Interestingly , the blue chip areas are the areas that haven't moved much this cycle except in their bottom ends

So personally I'd be more comfortable in buys there , compared with some of the prices paid in lesser suburbs .

we also have talk about further drops in interest rates so the current move in Sydney may not be over quite yet . Time will tell.

Cliff
 
It's over for sydney shadow, the hangover is on its way, the economy is on the turn, sure am glad I wasn't one of the suckers who's bought in a blue chip sydney suburb in the past 12 months.

I wish I bought another pad in a blue chip Sydney suburb 12 months ago. Would be doing very nicely with more to come yet in my opinion.
Go Sydney you ripper - we need another 40% by 2018 to make my prediction of a doubling in prices in 15 years.
 
Go Sydney you ripper - we need another 40% by 2018 to make my prediction of a doubling in prices in 15 years.

The one I just sold (Sydney West) more than doubled in 10. Bought 2004 for $180k, sold for $418100.:D

I don't think the runs over yet, not by a while, but it feels good to cash one of them in.
 
The one I just sold (Sydney West) more than doubled in 10. Bought 2004 for $180k, sold for $418100.:D

I don't think the runs over yet, not by a while, but it feels good to cash one of them in.

Well done Skater - how did you manage that? Must have been a good buy at the time.
 
Back
Top