The Sydney property market is red-hot. Fuelled by low interest rates, strong competition, the “herd mentality” and “FOMO” people are willing to pay almost any price to get a foot in the door or build their portfolio. With strong signals everywhere, aren’t buyers worried about burning their fingers in an overheated market?
Consider the following:
- The weekend of 5/6 April 2014 was the 10’th weekend in a row (since 1 February 2014) with a clearance rate of over 80%1
- The “Super Saturday” of 12 April ’14 saw 1087 properties listed, the first time over 1000 properties have been up for auction in Sydney on a Saturday
- The “Super Saturday” clearance rate was 78.1%2
- Building approvals in January / February 2013 were 4,021 compared to 5,499 in the same month in 2014 – a 36,7% increase
- The median property price in Sydney has surged by over 15% in the past 12 months (see chart overleaf)
- First time home buyers are being driven out of the market byinvestors and upgraders and the high prices that result
To find more about Investment Cycle you can download the free guide below.
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