The six factors driving Sydney's price growth: John McGrath

The six factors driving Sydney's price growth: John McGrath
The six factors driving Sydney's price growth: John McGrath

Sydney’s much publicised growth over the past few years has seen record breaking sales and new highs in the median price, and there are a number of forces behind this growth, according to McGrath Estate Agents’ John McGrath.

Over the past 12 months, Sydney has seen 14.8% growth across the board, with McGrath tipping further growth to come.

In The McGrath Report 2014, he notes that when looking at the drivers of the Sydney market six distinct elements emerge. These six factors, in concert with a recovering economy, are behind current growth.

McGrath notes that the property market is likely to continue growing, but at more modest rates, with continued demand in the inner ring and beachside suburbs, but also in the outer ring areas of Kellyville and Rouse Hill.

Here are the six elements that have driven the growth to date:

  1. The return of investors and influx of SMSF direct investment

  2. Significant inflow of overseas investment in the residential market

  3. Record low interest rates alongside record high rents

  4. The impact of a new state government

  5. Approval and commencement of several major infrastructure projects

  6. Underlying housing shortage coupled with an anticipated population growth of 1.57 million by 2031

Source: The McGrath Report 2014

His expectation, while not for 'straight line' growth, is for another 10% to 20% growth left in the cycle over the next few years.

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Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

Tags: 
Sydney

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