BIS Shrapnel: Residential recovery well underway in Sydney

16.9.13The latest BIS Shrapnel report has highlighted that the residential recover in Sydney is well and truly underway, with the predicted rise in population spurring on housing growth across the city.

The ‘Outlook for Residential Land, 2013 to 2018’ report stated that the residential environment in Sydney at the moment is the combination of low new dwelling construction in recent years, and increasing affordability of property and building in the state.

The low interest rates from the cash rate decision have also contributed towards cultivating a landscape perfect for property investment or owner occupiers alike.

Senior manager at BIS Shrapnel and report author Angie Zigomanis said that Sydney’s growth was also being spurred on by people undergoing upgrades, which is where the solid growth in demand has been.

This illustration of Sydney’s real estate market could be beneficial for both home buyers and sellers alike. While the demand for real estate is there, a degree of affordability allows for people to find their own slices of property and secure a family home easily.

These results are reflected in the auction clearance results from last weekend (September 14) released by the Australian Property Monitors (APM).

Following on from the strong rates in winter, the latest clearance percentage rose to an outstanding 84 per cent, with a median sale price of $848,000 and a total sales amount for the weekend reaching $333,521,900.

These results highlight a highly active market, where both buyers and sellers are enthusiastically engaging with each other and helping to generate growth for the New South Wales capital city.

Andrew Wilson from the APM said in a September 15 article in the Australian Financial Review that these results discount the idea that a housing bubble is being created in the city.

“The underlying trend is for increased seller activity, but that is no surprise because the confidence in sellers reflects confidence from buyers,” said Mr Wilson in the September 15 article.

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