September Market Update
From January through to April of this year the property market was up but, it has since slowed with lending rules for investors tightening. It is no shock to see the media report on the inflation of the industry, however, Sunday nights doomsday report from 60 Minutes Australia seems a little on the extreme side of what is currently happening in the property industry!
When the initial market-slow came, the industry was shocked. Investor-buyers were hardest hit as banks were unwilling to fund their investments and the momentum has slowed. However, it is important to point out the stability of the property market in spite of these sudden changes.
Strong local economy, strong population growth, a strong banking industry and the knowledge of agents should be taken into consideration.
As our Principal Agent, Trisiana Muljono says, “Agents have reacted with strength and adjusted accordingly to readjust existing sales techniques with new best practices. This has helped to keep the market strong”.
Although momentum has slowed, prices are still up 5%. This isn’t the 10% everyone wants and is certainly not a doomsday worthy statistic.
“As agents, we’re still able to predict the market. We are able to adjust accordingly to the market for our vendors. There is a sense of stability even though we see changes,” says Trish.
The Australian property market may be in some trouble in terms of a decline and some big changes may be on the way. But, it should be looked at as a slow and stable change rather than any extreme predictions of a crash and burn.
The SydneyLinks team
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