A Residex survey* shows that house prices
in Sydney have increased by up to 10 per
cent in the past 12 months. Other capital
cities have also shown strong growth.
And yes, that means through the GFC!
10 per cent growth through the GFC is
an amazing performance, but it gets better:
The Seven News channel reported on 25
October that some Sydney suburbs’
prices had increased by up to 8 per cent
in the past three months!
It seems hard to believe, but a detailed
suburb-by-suburb review of Sydney’s
property market makes for remarkable reading,
and must be a source of great comfort
and achievement for all those who dug
in and clung to their properties through
the challenge of the GFC. Or who were
bold enough to invest in more.
Why? Because we are talking about property
maintaining its historical growth trend
– through one of the toughest economic
times on record! This is simply amazing,
particularly when viewed against the negative
background we experienced.
So, why is this occurring?
- Australia has a huge backlog in housing
(up to 200,000 housing units)
- This backlog increases by 30,000
plus each year
- Our population is growing by over
400,000 per annum
- Interest rates are still at record
lows
- Regulations and costs are slowing
the required release of new land for
development.
What this means is that whether you
are a property investor or a private homebuyer,
you are buying into a market of limited
supply and very strong demand. It is this
relationship that keeps the prices rising.
The trends and the data are facts. So,
how can you benefit from what is happening
all around you? The simple answer is;
“Get involved. Get into the game.”
You have to be in it to win it, and nowhere
is this truer than in the Australian housing
market.
When you look back in 10 to 15 years
time at the opportunities that are available
today, what will you be saying? Either,
“We wish we’d taken advantage
of the obvious growth that was on offer,”
or will it be, “Thank goodness we
got involved when we did. Look at the
outstanding return on our property investments.”
Rest assured, if the property market
can perform like it has over the past
12 months (i.e. through the GFC), then
the downside risks look to be very small
indeed. So, let’s hope you’re
saying the latter!
If you would like to learn more and
discuss how McCarthy Group can assist
you, click
here.
Suburb growth data
appeared in The Sunday Telegraph, 25 October
2009
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