Wednesday 27 Jan 2016
I had to laugh. On Australia Day we were all encouraged to celebrate our national day with a BBQ, a few beers, dressed in boardies or a bikini, eating lamb and lamingtons. Nothing wrong with that, but what I found equally quintessentially Australian and typically Sydney was to wake to a newspaper headline announcing our great city as the second most expensive city in the world!
Property has become as much a part of our national dialogue as the debate around how long to leave a steak on a barbie before you turn it.
There is no doubt, Sydney is an expensive city in which to purchase property. It’s a cosmopolitan harbour city to rival any in the world so I believe the property prices are easily justified, but it’s important to remember that the prices achieved really are based on value and demand, not hope and hot air.
And I anticipate that will be the point I will need to keep emphasising throughout this year as buyers and vendors adjust to the changing market conditions.
Price is based on value and demand.
Prices don’t always, automatically rise but they also don’t automatically and drastically drop because even if demand eases there remains true value in Sydney real estate.
Of course we have yet to see what, if any, impact the sharemarket issues in China and the subsequent wobbles locally will have on the domestic property market. It may mean some easing of demand but I don’t believe it will cause a massive shift in local market conditions because demand for Sydney property has never been reliant on a single market sector. If some potential buyers withdraw others will enter.