Housing costs stunt growth in Sydney
By
Andrea Cornish
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21/06/2010 12:00:00 AM
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The Sydney property market is being limited by affordability issues, say property experts and economists, who gathered at WBP Property Group's annual breakfast discussion.
Speaker Justin Smirk, chief economist for St. George Bank, told attendees that affordability in the NSW capital is stressed.
“Prices in Sydney can increase in suburbs quicker than expected due to factors such as migration and an influx of high income purchasers, adding further pressure to affordability,” he said
However according to Aussie Home Loans founder John Symond, there is no reason to expect a crash.
“We aren’t going to see a crash and there is no bubble, however, property prices cannot sustain the levels of growth seen in the likes of Melbourne and Sydney in recent times. But fundamentally, conditions are pretty healthy and we won’t see prices fall away.”
Symond outlined concerns that the coming Federal election will bring about a flood a bad news that could affect confidence in the market.
“And if history proves correct we will witness a reduction in housing activity in the next six to 12 months.”
WBP Sydney residential property valuer Chrsi Lackey confirmed there has been strong growth across the board in the last 12 months.
“The Sydney market has seen growth in excess of 14% since the beginning of 2009. Commencing initially at the bottom end of the market, the trend in rising values led to a recovery in the city’s prestige markets despite reduced activity levels from cautious buyers.”
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