{"id":4745,"date":"2015-06-05T14:48:41","date_gmt":"2015-06-05T04:48:41","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=4745"},"modified":"2015-06-05T14:48:41","modified_gmt":"2015-06-05T04:48:41","slug":"why-sydney-property-prices-wont-fall-john-mcgrath","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/why-sydney-property-prices-wont-fall-john-mcgrath\/","title":{"rendered":"Why Sydney property prices won't fall – John McGrath"},"content":{"rendered":"

In his recent column in\u00a0Switzer<\/a>, John McGrath discusses Sydney property prices and why he believes they won’t be dropping anytime soon.<\/p>\n

Here’s what he had to say:<\/h4>\n

So we\u2019re well into the third year of substantial price growth in Sydney, with home values up almost 7% in 2015 (CoreLogic RP Data) and we\u2019re not even at the half way mark yet.
\n\"John
\nThe boom was not expected to continue this far into 2015.
\nWe saw a dampening of the market in November 2014 when a lot of stock came online and indications at the time were that we might be coming to the end of the rapid growth period.
\nBut the market has kept going, in part due to two further interest rate cuts which have done a lot to keep buyers engaged.
\nBut as prices keep rising, so does the intensity of discussion around price bubbles and the apparent potential for collapse of property values in the Sydney market.
\nI believe that buyers and sellers need to ignore this commentary.
\nSydney has proven itself over and over again to be one of the most resilient property markets in the world.<\/strong>
\nThere are reasons for this and most of them relate to long-term fundamentals that form a bedrock of strength for the market.
\nA big fundamental is that Sydney is vastly undersupplied with natural borders that limit the amount of new homes that can be built, yet demand keeps on rising due to the city\u2019s strong population growth and increasing engagement from overseas buyers.
\nI read with interest an opinion piece by one of Australia\u2019s most respected business and investment journalists, Robert Gottliebsen in\u00a0The Australian\u00a0<\/em>recently that laid out some great statistics on Sydney\u2019s supply\/demand equation at it stands right now.
\nThe article underlines why prices aren\u2019t going to come crashing down and in fact, why they\u2019re likely to keep on rising for the next 15 years.<\/strong>
\nHere\u2019s a rundown of Gottliebsen\u2019s article, which is based on data from Infrastructure Australia and the Housing Industry Association:\"sydney-harbour\"<\/p>\n