Keep it in perspective.
Tuesday 13 Sep 2016
In real estate we often promote the outlook and position of a property. We look at price and consider value but one thing many across the market find difficult to maintain is a realistic sense of perspective. I think it’s important to view the current property market, and indeed the outlook for coming months, with a wider sense of perspective. Here’s why.
The good years for property have been very good. The good years have also been many. We have become so accustomed to double digit property growth across both the house and apartment market many consider it almost an automatic right of ownership. How great would that be…but that expectation can be dangerous.
The thing is the level of growth is slowing. It is still growing. Let me say that again: It is still growing but the rate of growth is easing. Corelogic reports capital city house values in Sydney have increased by 9.6% over the last twelve months with an 8.3% increase in Sydney unit values over the same period.
That’s why perspective is important because there is growing commentary saying that the Sydney apartment market will be impacted by the increase in supply of new properties anticipated in coming years.
I expect those predictions are relevant. More supply may dilute the market somewhat. But let’s look at the Sydney property market value with some perspective.
Corelogic data show Sydney home values have increased a staggering 98% between August 2008 and August 2016. Sydney apartment values have increased an equally respectable 71.9% over that same period.
Those are some fairly phenomenal figures. In that context even with the potential for some level of easing in value growth there still remains significant opportunity for property to deliver quality returns.
So as I have said many times before. Don’t panic. Perhaps don’t be greedy but definitely don’t panic because when you see it in perspective the future still looks strong for property.
And don’t forget it remains exceptionally strong right now! Potential vendors, give our team a call to get your property listed and sold in this demand driven Spring market.