Sydney not in ‘Property Bubble’

As low interest rates urge a jump in property prices and high clearance rates, in major cities at least, talk of a property bubble is rising. Our brokers attended the Westpac Road Show in September where RP Data's Tim Lawless said that despite strong conditions in Sydney, and ongoing fears about whether they can continue, the Sydney market is tracking well and nothing is about to burst.

"It's pretty clear that even though growth rates are pretty strong now, we aren't in any sort of bubble market," he said.

Mr Lawless said he expects Sydney to keep outperforming the broader capital city average and that "momentum will continue in the market". He also pointed to longer term trends to allay fears that Sydney's price growth is unsustainable.

Lawless continues to clarify that looking at the long-term rate of growth for Sydney, over the past decade, Sydney values have only risen by 2.5 per cent per annum. That is lower than inflation.

Turning to Sydney's premium housing market, Mr Lawless said the signs were also positive.

Are you thinking about buying a property? Contact us on 02 9299 7044 for a free consultation with one of our experienced brokers.

 

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