admin-ajax.php

Sydney property prices to cool off once more

While Sydney property investors have had much to rejoice about in recent times, with the city’s house prices finally making decent gains after years of negligible growth, the celebrations might be short lived according to a study from RP Data.

According to the property research group, prices in the Harbour city increased by 9.1% on average over the 12 months to August 31st, hitting $582,000 for houses and $450,000 for apartments. However, prices are expected to flatline and remain around current levels throughout 2011; an outcome that will be compounded by rising interest rates.

Chief Economist of St George Bank, who commissioned the RP Data report, Justin Smirk said of the findings, “The good news for first-home buyers is that average Sydney house prices are expected to stay relatively stable in the short term, so they shouldn’t feel rushed to jump into the market. Affordability remains the key factor for property prices in Sydney,” which will help offset a shortage of properties and keep prices level, he added.

Although Sydney is still the least affordable city in Australia, residential prices in the NSW capital have underperformed the overall Australian real estate market over the last decade, with an average annual increase of 6.4%, compared to 9.5 nationally. However, RP Data says the state’s growing population and worsening housing shortage will help to drive prices higher over time.



icon-podcast-large

SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

icon-email-large

PREFER TO SUBSCRIBE VIA EMAIL?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Sydney property prices to cool off once more' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*

facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!