APM's Andrew Wilson predicts 10% growth for Sydney prestige market
Low interest rates and confidence built through growth in the stock market have senior economist for Australian Property Monitors, Andrew Wilson, predicting an uptick. He believes that the lower north shore, northern beaches and city east are following the boom seen in the lower and middle markets in Sydney.
Already, over the March quarter, APM’s figures recorded 8% growth in the prestige market, compared to the western suburbs’ 3.9%.
He revealed, at the second annual LJ Hooker Mosman Investment Seminar, that the middle and lower ends are tampering off, however the lower north shore is firing up.
“Current prestige markets are definitely not as advanced in the price cycle as previous highs in 2009 and 2010, there is still some way for that market to reach the top,” he said.
In fact, he believes that by the end of 2014, the lower north shore will have seen 10% in growth.
“There is no stopping the prestige property market at the moment, there is still a lot of positive energy buzzing around with reports of the highest price growth since 2003,” he told seminar attendees.
“This positive atmosphere has worked as a mindset shift for possible buyers and sellers in that market, rather than an underpinning driver.”
LJ Hooker Mosman director Bernard Ryan said that he is seeing properties over $1.8 million transacting faster.
“Investors and upgraders have been honing in on the lower north shore since interest rates started trending down in November 2011, but activity really gathered pace in the last year,” Ryan said.
“We’ve always had a strong contingent of locally-based clients, but interstate-based and overseas investors have increased their presence recently.”
Areas for potential growth:
Source: LJ Hooker Mosman