Analyst’s report predicts Sydney price growth
Analyst’s report predicts Sydney price growth
Posted on Wednesday, April 17 2013 at 3:50 PM
A report released by SQM Research this week says Sydney property prices are set to continue rising this year.
Sydney Housing Boom and Bust Report –
2013/2014 predicts housing prices in
the city will rise between five per cent and nine per cent this year.
The report also sees unit
prices increasing between four per cent and eight per cent in the same period.
Louis Christopher, managing
director of SQM Research, says the result confirms their findings from late 2012.
“Real estate prices are
generally rising in the outer rings of Sydney. We have also found very recent
evidence of prices rising in Sydney’s inner ring.”
The report highlights the
suburbs of Bass Hill and Ermington in Sydney’s west as having the city’s
tightest vacancy rates.
“These areas could
potentially be suitable places to invest, as rental properties in these
postcodes are high in demand.”
Christopher says, “militant
councils, locked up government land, high costs of construction and high levies
charged on developments,” have restricted supply.
Christopher sees this as resulting
in current construction activity lower than what it was in the early 1980s. “An
absolutely crazy situation, given that the population has grown by over a
million since that time.”
The report comes after data
released by Australian Property Monitors (APM), shows auction clearance rates in
Sydney for the past weekend are at record levels.
According to Andrew Wilson, senior
economist at APM, clearance rates are rising despite an increase in the number
of listings.
”Sydney recorded a clearance
rate of 73 per cent which is 15 per cent higher than the 57.7 per cent recorded
for the same weekend last year,” Wilson says.
Seller activity and
confidence is on the rise driven by increased competition from buyers,
according to Wilson.
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