{"id":6088,"date":"2015-10-15T10:00:35","date_gmt":"2015-10-14T23:00:35","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=6088"},"modified":"2015-10-15T10:00:35","modified_gmt":"2015-10-14T23:00:35","slug":"the-spectacular-sydney-property-boom-john-mcgrath","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-spectacular-sydney-property-boom-john-mcgrath\/","title":{"rendered":"The Spectacular Sydney Property Boom &#8211; John McGrath"},"content":{"rendered":"<p><strong>The spectacular Sydney property boom is finally easing off.<\/strong><br \/>\nIn his regular column on\u00a0<a href=\"http:\/\/switzer.com.au\/the-experts\/john-mcgrath-property-expert\/the-spectacular-sydney-property-boom\/\" target=\"_blank\" rel=\"noopener noreferrer\">Switzer<\/a>\u00a0John McGrath will spend the next few weeks drilling down on the local trends occurring within each of the Eastern Seaboard\u2019s major capital cities.<br \/>\nThis week he started where all the major action is happening \u2013\u00a0<strong>the\u00a0<a href=\"http:\/\/sydneybuyersagent.com.au\/\" target=\"_blank\" rel=\"noopener noreferrer\">Sydney property market<\/a>.\u00a0<\/strong><\/p>\n<h4>Here&#8217;s what he said:<\/h4>\n<p>This has undoubtedly been one of the most spectacular booms in Sydney\u2019s real estate history.<img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright\" alt=\"John Mcgrath\" src=\"https:\/\/i0.wp.com\/puassets.s3.amazonaws.com\/wp-content\/uploads\/2015\/07\/JohnMcgrath-e1436853066209-300x234.jpg?resize=300%2C234\" width=\"300\" height=\"234\" \/><br \/>\nAccording to CoreLogic RP Data, this growth cycle began in May 2012 and it\u2019s been a strong climb since then.<br \/>\nOn June 30 2013, Sydney\u2019s median house price was $662,500 and it had risen 6.3% over the year.<br \/>\nOver the next 12 months we saw another 16.2% rise and a further 17.8% gain by June 30 2015.<br \/>\nBy September 2015, Sydney\u2019s median house price was $900,000.<br \/>\nSoon enough, we\u2019ll have a million dollar median \u2013 in fact, some researchers say we\u2019re already there, but everyone measures the numbers a bit differently.<br \/>\nFurther interest rate cuts earlier this year extended the boom, along with strong demand from investors and a shortage of stock that resulted in auction clearance rates peaking at 89% in May.<br \/>\nThe average time it takes to sell also reached record speed at just 26 days this year.<br \/>\nLack of stock has been a big issue, particularly in destination suburbs where existing residents, seeking to upgrade or downsize locally, have been competing with an increasing number of out-of-area aspirants.<br \/>\nBy mid-May, total stock available for sale was down 21% compared to the year before.<br \/>\nMany homeowners delayed selling because buying back in was simply too hard.<\/p>\n<h4>Things have since changed<\/h4>\n<p>As stated in our McGrath Report, stock levels began to improve in late Winter and by August, stock was only 5% lower than in August 2014.<br \/>\nNew statistics released since our report was published show stock levels are now 4.7% higher than this time last year.<br \/>\nIn reality, we are probably getting close to the peak of this boom.<br \/>\nInterest rates are unlikely to rise for some time but affordability is starting to bite.<br \/>\nPrices have risen to such a point that I believe more young families than usual will leave Sydney in favour of Melbourne, Brisbane or major coastal areas.<br \/>\nMany first home buyers are \u2018rentvesting\u2019 (renting were you want to live, and buying an investment property where you can afford) instead, which is a great option.<br \/>\nWe\u2019re also seeing more investors heading to Brisbane for the highest yields of the major capitals (as well as the Gold and Sunshine Coasts) with all three locations offering excellent prospects for near-term capital growth.<br \/>\nTighter investor lending criteria is having an impact in Sydney and this is a good thing, as it is weeding out the investors who are leveraging themselves too highly.<br \/>\nHowever, this is only a speed bump in Sydney\u2019s boom.<br \/>\nInvestors on good incomes using new equity in their homes or SMSFs are easily able to satisfy the new criteria of lower LVRs, tougher serviceability and slightly higher mortgage rates.<\/p>\n<h4>Natural attrition will be what ends this boom<\/h4>\n<p>A simple case of prices getting so high that owner-occupiers back off to see what happens next, while falling rental yields and limited prospects for much more capital growth prompt investors to look elsewhere.<br \/>\nAnyone who owns a good quality, well located property in Sydney owns a piece of financial security.<br \/>\nDespite predictions that Melbourne\u2019s population will overtake Sydney\u2019s in as little as 15 years, Sydney will always be the powerhouse property market of Australia due to high migration, work opportunities and an undersupply.<br \/>\nAnd it\u2019s important to remember that boom periods are only part of a growth cycle.<br \/>\nWhile I do expect this boom to cease soon, Sydney prices will continue to grow throughout 2016 \u2013 it will just be at a slower pace.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The spectacular Sydney property boom is finally easing off. In his regular column on\u00a0Switzer\u00a0John McGrath will spend the next few weeks drilling down on the local trends occurring within each of the Eastern Seaboard\u2019s major capital cities. This week he started where all the major&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[13],"tags":[],"class_list":["post-6088","post","type-post","status-publish","format-standard","hentry","category-latest-story"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Spectacular Sydney Property Boom - John McGrath - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-spectacular-sydney-property-boom-john-mcgrath\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Spectacular Sydney Property Boom - John McGrath - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"The spectacular Sydney property boom is finally easing off. In his regular column on\u00a0Switzer\u00a0John McGrath will spend the next few weeks drilling down on the local trends occurring within each of the Eastern Seaboard\u2019s major capital cities. 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