August 2017 Director’s Desk
Thursday 17 Aug 2017
Last month I recommended not becoming obsessed with statistics. I also regularly encourage people against getting caught up in the property market obsession with setting records. I am therefore very conscious of the risk I might be seen as a little contradictory as I take this opportunity to tell you that our sales team achieved a new settlement record for the month of July. But there is a reason you need to know…..
Of course I am very proud of the achievements of our team to secure a new high in terms of sales negotiated and settled. They have the experience, precinct knowledge and professional relationships to deliver great results for their clients, but I think the results of our team also tell a story of the market more generally which is important to consider.
It is a very clear demonstration that the market is continuing to tick over. Actually, to be honest I think it is more than ticking. I’d say it is hammering along nicely.
There is no denying it has softened a little from the heady start to the year but our results prove there is a lot of life left in the market yet.
And I think it is very interesting to read analysis highlighting that investor activity in the residential property market is easing in response to the regulatory changes introduced specifically to achieve that end.
Investors have consistently been labelled the ‘bad guys’ responsible for the booming property market supposedly blocking Mum and Dad owner occupiers and first home buyers from the property ladder.
But even with reduced numbers of investors pursuing residential property the market continues to hold strong. It shows the fundamental strength of the Sydney property market is based on much more than just the financial motivation of investors.
And remember the movement of investors out of the market is not because they no longer see an opportunity to achieve value growth. They aren’t the canary in the mineshaft. Rather marginal investors have been impacted because avenues to secure finance have become tighter. That allows more opportunity for owner occupiers but they still have to fight for it.
You don’t have to be obsessed with statistics to see that even with fewer investors active demand is still clearly evident. Owner occupier demand remains very strong which means buyers need to be prepared to pay good value to secure a property.