Investors ready as prices to stabilise in 2010
14 Jan 10
Investors ready as prices to stabilise in 2010
In 2009, Sydney's median house price rose to a record $610,000 (Source: Residex). The Sydney property market enjoyed a boom period of strong price growth and excellent auction clearance rates, indicating strong buyer demand.
John McCormack, Starr Partners CEO believes that early figures show a stabilisation of the Sydney market but he was keen to point out that opportunities for investors are still available. “Sydney is still struggling to keep up with demand for good rental properties. Our offices have reported that viewings and open houses are still well attended and competition to secure rental properties is high” he said.
McCormack noted “Sixty eight per cent of all properties listed for auction in Sydney during the month of November 2009 sold on the day. Clearance rates in Sydney have been 70 per cent or above for the last five months prior to November.”
Since reliable records have been kept, there has only been one period of stronger auction activity in Sydney, in 1997. Other periods with high auction clearance rates, pointing to stronger house price growth occurred in 1999 and 2001 to 2003.
Lower price growth in 2010 could be expected as auction clearance rates begin to fall. Inner ring and beachside suburbs are still expected to deliver strong price growth of 8–10 per cent.