Middle Sydney 10% price growth tipped: Domain Group's Andrew Wilson
Entering its third year of boom-time conditions, the resilient Sydney market continues to produce extraordinary results, according to the Domain Group senior economist, Andrew Wilson.
Prices growth continues to track at decade high levels with a market characterised by high levels of confidence and enthusiasm, he advised.
"Sydney’s continued strong housing market activity is due largely to the nation-leading performance of the local economy.
"High levels of migration are also keeping demand well ahead of supply, which remains significantly below underlying requirements.
"Investor activity in the Sydney market remains at record levels and is another key driver of prices growth."
Source: Domain Group
Low vacancy rates, rising rents and prices growth will continue to attract investors into the market this year, Wilson tipped.
"Lower interest rates will also activate investors who will have increased capacity to borrow and an enhanced “bricks and mortar” comparison with falling term deposit rates.," he said.
Source: Domain Group
Wilson said the Sydney housing market had commenced 2015 strongly with record level auction clearance rates for the late summer season.
First home buyer activity, however, remains at near record low levels as a proportion of market share.
"The prestige market revived over 2014 and although prices growth of 6.0% was below other market sectors, the increase in volumes and the prospect of a higher share market through 2015 will continue to activate buyers and restore confidence in this sector," he said.
Source: Domain Group
Sydney’s median house price increased by 14% over 2014, a similar result to the 15.4% recorded over 2013.
Wilson forecast that Sydney was on track to record prices growth of between 7 and 10% over 2015, which will again be the best result of all capital cities.
The coastal based eastern suburbs agency, Phillips Pantzer Donnelley reported today that it had sold 16 properties valued at $33 million with a mean price of $2.1 million in the past few weeks.
The properties ranged from a one-bedroom apartment at 12/57 Gilderthorpe Avenue, Randwick selling after just four days by Nick Quilkey and Debbie Donnelley for $685,000 up to Alexander Phillips’ sale of 10 Mirimar Avenue, Bronte selling for $5.6 million.
Property Observer gleans an expat family returning to Australia purchased the Bronte beach house planning a $4 million renovation project to create their dream home.