Broker questions Sydney property market cooldown

by Julia Corderoy14 Oct 2015
Amid speculation of a cooling Sydney property market, a top Sydney-based broker has claimed there has been no downturn in his business and he doesn’t expect the Sydney to pull-back any time soon.

Owun Taylor, owner and partner of Mortgage Choice Newtown, told Australian Broker that his business hasn’t been affected by growing speculation the Sydney property market has moved past its peak. In fact, he has plenty of clients still ready and willing to buy in the current market, suggesting that Sydney’s peak is still to come. 

“We have had plenty to keep us going across all parts of the business – broking and financial planning. We still have plenty of clients with conditional approvals that haven't found the right home, rather than being priced out. I know in talking to local area agents they are still getting properties ready to list,” he said.

Recent data has suggested that the Sydney housing market is beginning to experience a pull-back. Figures from SQM Research reveal that a surge in property listings in the harbour city – where listings were up 7.6% over September – point to a cooling of the market. 

“The Sydney surge in listings is another indicator now suggesting that the Sydney housing market is now slowing,” SQM Research head Louis Christopher said.

“Buyers should now find there is a little more choice out there compared to earlier this year.”

In addition to more property listings, Sydney’s auction clearance rate also dipped below 70% to its lowest September level in three years. According to figures from Domain, Sydney’s September auction clearance rates dropped to 69.8%, now sitting clearly below the 76.9% recorded in September 2014 and the lowest September result since 2012.

But despite what some data suggests, Taylor told Australian Broker that in reality, Sydney will continue to be the backbone of the Australian property market. 

“I don't see Sydney’s prices going backwards. Property prices are going to be a great talking point for Sydney people for a long time. What I do know is Sydney is a global city, with just over one-fifth of Australia's total population living in and around it,” he said.

“The simple economic rule of supply and demand predicts that prices will be at a premium compared to other cities. We have seen a very keen interest from the public to our renovation seminars and a lot more renovation loans completed this year.”

But that doesn’t mean Taylor – whose Mortgage Choice franchise has an in-house financial planner – isn’t protecting his business from market uncertainties.

“Nothing is guaranteed in life, be dynamic,” he told Australian Broker.