Record Sydney price drop nothing to worry about

by AB01 Feb 2016
While the December 2015 quarter bought with it a record for Sydney’s median house price, property investment experts have said it was nothing more than a natural part of the cycle the city has been in.

According the latest Domain House Price Report, Sydney’s median house price now sits at $1,013,258 after falling 3.1% in the three months to December. The decrease is the first decline for Sydney since June 2012 and the largest quarterly decrease on record for the city.

However, while the boom may very well be over, Rich Harvey, managing director of buyer’s agency Property Buyer, told Australian Broker’s sister publication, Your Investment Property, that property owners in Sydney should cast their eyes over the city’s entire cycle before worrying too much.

“It’s the slowdown that had to happen really,” Harvey said.

“Over the past three years we’ve seen growth of around 50% in Sydney and when that happens you’re always going to get to a point where the growth curve flattens out and that’s what we’re seeing now,” he said.

Sam Saggers, chief executive officer of Positive Real Estate agreed with Harvey’s outlook, telling Your Investment Property that the decrease shows Sydney likely pushed too far past the affordability barrier.

“It’s simply a correction from on high,” Saggers said.

“I think recently we’ve seen a weaker market sentiment recently, which probably shows that prices had got out of reach for a lot of people and now they’re just pulling back a bit which is normal,” he said.