Sydney defies wider property slowdown

The-Sydney-market-is-still-booming-despite-a-general-slowdown_157_88037_0_14101555_300Despite the slowdown recorded in Australian property value growth, it seems Sydney is still a top spot for investors looking to make strong returns.

According to the RP Data CoreLogic October Hedonic Home Value Index, Sydney was one of only two capitals to record any substantial growth over the October period, seeing a 1.3 per cent increase in its home values. This puts its median dwelling price at $680,000. The other city to see an increase was Melbourne.

By contrast, the only other capital to see positive growth in its values, Brisbane, recorded an unremarkable rise of 0.6 per cent. Every other capital saw its house prices decline.

These results indicate that Sydney is still a strong option for investors, in what appears to be a more long-term tempering of the market.

“Looking at the increase in home values over the 12 months to October, it is clear that the rate of capital growth is continuing to moderate,” RP Data Research Director Tim Lawless commented in a November 3 release.

The RP Data CoreLogic Hedonic Home Value Index for September had recorded  0.1 per cent growth in property values, for example.

Even then, Sydney was one of the few capitals driving this meagre positive growth. Only the Harbour City, Brisbane, Adelaide and Melbourne had seen a increase in values over the preceding three-month period.

Mr Lawless also took care to emphasise that other indicators for the property market were going strong. Clearance rates for auctions, for example, were around 70 per cent on a weekly basis, indicating that buyer demand was still strong. Total listing numbers and the amount of new properties on the market were also increasing, he added.

This slowdown, then, may well only be a temporary blip in the wider housing market ocean. Buyers looking for investment opportunities may not want to write off the housing market just yet, particularly in Sydney.

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