As soon as Sydney housing prices started their rising phase quite some time ago so called pundits have called for warnings about a property “bubble” and it’s impending explosion. Rather than listen to the hype, lets look at some data to try and determine where certain Sydney Property types are currently at, and potentially in which direction they may be heading.
To answer the question “Is Sydney Property about to Crash?”… the short answer according to a report by BIS Shrapnel Sydney is no.
The report outlined that Sydney is still benefitting from an undersupply of housing. Managing Director of BIS Shrapnel Robert Mellor said “It’s so severe we won’t see an oversupply in Sydney in the next four years”.
Another significant factor to consider is that property listings remain tight in many key suburbs around Sydney, while clearance rates are going through the roof.
Sydney has now reported clearance rates above 80 per cent over the past seven weeks since the beginning of February, including an 82.2 clearance rate just this past weekend. To give you some indication the clearance rate for Sydney on this weekend exactly 12 months ago was 75.8 per cent.
With the term “Fake News” buzzing through the airwaves on a daily basis, it is more important than ever to understand the data rather than being overwhelmed by the hype. To register for my next live event where I’ll be looking at the data for the suburbs, property types and markets that are just beginning their growth phases please click on this link.
According to realestate.com.au, the total amount of properties coming onto the market for sale continues to drop. According to the website there have been “strong single-digit declines” in residential property listings right across the country and even some double-digit falls in our largest markets, with Sydney one of the biggest benefactors.
Worried Sydney-siders should feel some level of comfort for the time being in the fact that property-listing levels remain tight, keeping supply in check.
To learn which markets are the most at risk, as well as how you can most effectively leverage off my team’s research and expertise before investing in property, register here for this Saturday’s complimentary event.