Sydney plans for the future

107There are number of council-led development projects currently underway in Sydney, as the capital city races to keep up with population growth and demand for homes and quality infrastructure.

It appears that Australia may keep up with property demand this year, too.

Economy pushing forward

Reserve Bank of Australia Governor Glenn Stevens spoke at the 17th Annual Credit Suisse Asian Investment Conference on March 26.

Held in Hong Kong, the conference provided a platform for Mr Stevens to provide his views on the global economic outlook as well as what’s happening closer to home.

Residential construction has been “soft” for some time, Mr Stevens noted.

However, looking ahead, conditions seem more favourable.

“We certainly see abundant signs of confidence in the housing market,” Mr Stevens explained. It’s anticipated that dwelling construction activity will pick up, rising strongly in the near future.

Such news will be welcome for Sydney families and couples looking to eventually secure their own homes in the capital’s booming property market.

Warning for investors

Despite favourable news for construction growth, a warning of sorts was issued for investors.

While this sector of property buyers help push up demand for the economy and provide rental opportunities, Mr Stevens advised some financial prudence.

Dwelling prices are currently 5 per cent higher than the market’s previous peak in 2010.

While housing credit growth is not at levels in the 2000s, investors has exhibited a “noticeable” pick up of housing credit growth.

This has led Mr Stevens to warn investors to be careful with how much financial leverage they’re taking on.

However, future developments offer plenty of welcome options, provided investors are savvy about their borrowing habits and invest in areas with high rental yields and strong capital growth.

Sydney looking bright in the future 

Current council-led developments are sure to make Sydney brighter and echo Mr Stevens’ confidence for an impending pick-up in the construction sector.

From the residential apartments for the Ashmore Precinct to the Green Square urban redevelopment project, there are many options for prudent investors and home buyers in Sydney.

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