Buyers' sentiment weakens, but Sydney remains stable, with the country's strongest economy
Sydney had a difficult month as the price correction continued to drive down prices. In the long run, however, the city should always climb to the top.
"In the medium to long term, capital growth should remain robust in Sydney because of strong employment, population growth and many major infrastructure projects," says Rich Harvey , CEO and founder of Propertybuyer.
"Australia has the strongest economy in Australia and accounts for about a third of its GDP. It also records the lowest unemployment rate (4.5%) and the highest employment growth (3.4% per annum). "
As a result, Sydney's properties should continue to experience reasonable demand. Part of the population has moved to other states due to high real estate prices, but NSW still has the best net migration figures in the country. NSW's 2018-2019 budget also provided $ 87.2 billion for the deployment of infrastructure projects over the next few years, which should improve accessibility throughout the state.
"Investors who play the long game would be well advised to position themselves for the next step, while competition is less strong and there is a greater choice of available properties," says Harvey. .
A wealth of choice for renters
This is the right time to rent in the subway, according to the results of a survey on vacancy rates conducted in December 2018.
"The rise [in rates] was driven by Middle Sydney, which jumped 1.6 percentage points to 5.1%, and Inner Sydney, which rose 0.5 percentage points to 3 , 0%. The outskirts of Sydney grew by 3.3 percentage points, reaching 3.3%, "said Leanne Pilkington, president of the New South Wales Real Estate Institute.
"Our agents' reactions suggest that the market is flooded with new units."
This, however, means that older dwellings are more difficult to rent. To stimulate the interest of potential tenants, agents lower rents and offer periods without rent.
The vacancy rate in the Sydney Metropolitan Area increased by 0.2 percentage points to 3.2% in December 2018, but the NSW Regional decreased by 1, 2 percentage points of vacancies to 1.5%. With the supply of rental housing rising in the city, rental prices in Sydney will soon drop.
SUBURB TO MONITOR
KOTARA: Sydney slowdown affects Newcastle
The suburbs of Kotara have seen an increase in housing values ​​for a long time, but recent figures show that the slowdown in Sydney could affect this region.
The unit market in particular felt a negative sentiment, with values ​​down 6.8% to reach a median of $ 437,558 for the year ending in December 2018. The decline was negative. was not as important for homes, at 1.5%.
Kotara has the advantage of being within 10 km of Newcastle's central business district. Westfield Kotara is the commercial center of the suburbs; it contains a department store, supermarkets, a food court and other stores. Schools include Kotara South Public School and another elementary school.
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