Wednesday 19 Jul 2017
Don’t you think it’s fascinating to see how the market is responding to the fact that the market isn’t responding as expected? I know that’s a bit of a brain teaser but do you see what I’m saying? The residential property market in Sydney continues to hold strong against the rising expectation that it should falter. It marches on regardless. And how good is that!
According to the stats released this week by CoreLogic for the Sydney residential property market over the last financial year, “Dwelling values increased by 12.2% over the past year and it was the fifth successive year in which values rose. Value growth was slightly higher than the 11.3% over the previous financial year.”
That is impressive year on year growth and I think the fact that the market continues to be strong today is based on recognition of that successive growth over the last five years.
Of course I don’t doubt those active in the market right now are hoping the trend of double digit growth will continue. But I think they do so even as they know realistically it cannot last forever.
But with such significant growth achieved for such a sustained period of time the fact is even if the market does ease the fact is there remains huge opportunity to still deliver value growth. And that’s why the market is still moving.
Demand still exists and buyers are will to pay good value for properties because they recognise growth can still be achieved into the future. So even as we hear ever increasing claims the growth cycle cannot continue it’s great to see those in the market are prepared to make up their own mind.
Vendors are choosing to list and buyers are eagerly inspecting and attending auctions with the intent to purchase and a belief that residential property in Sydney remains a good value financial investment.