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Market Report February 2017

By Ian Campbell

Market Update

The Sydney property market has continued its strong start to the year with February auction clearance rates hovering around a healthy 80 per cent.

Leading economists, academics, consultants and money managers polled for a recent BusinessDay Scope economic survey mostly agreed that Australian property prices will continue to rise this year, but at a much slower rate.

The panel’s average forecasts are for an increase in Sydney prices of 4.9 per cent (after 15.5. per cent in 2016) and an increase in Melbourne prices of 4.3 per cent (after 13.9 per cent last year).

“Pent-up demand remains especially large in Sydney, and while there are concerns about an oversupply of apartments in Melbourne, weakness is likely to be confined to certain segments in the market,” National Australia Bank’s Riki Polygenis said in a Sydney Morning Herald report.

“Property Drought” a windfall for Sellers

There’s no doubt it’s a seller’s market at the moment with slim pickings on offer and plenty of buyers battling against each other.

Property listings have plummeted by 50 per cent in five years, with stock levels in Sydney now lower than Brisbane and Perth despite having double the population, according to a recent Sunday Telegraph report.

In mid February there were just 16,421 properties currently advertised for sale in Sydney – roughly half of the 10-year average of 30,000.

Real Estate Institute of NSW president John Cunningham described stock levels as “dire”, adding he believed hefty stamp duty costs were putting people off upgrading.

Whatever the reasons, now is certainly a great time to sell. So if you are thinking of listing your property, speak with one of our highly-skilled sales team on 9331 9600.

Kings Cross Transformation

The evolution of Kings Cross continues with the conversion of several heritage-listed terraces into an upmarket
5-star hotel.

The Victoria Street development due to open in June is the brainchild of Jude Turner, wife of billionaire Flight Centre Founder Graham Turner.

“Having been built as private residences over 100 years ago, we are committed to honouring the history and heritage of the terraces as we transform them into a 20-room luxury hotel,” she told the Sydney Morning Herald recently.

“We have been meticulous with the renovations to preserve and restore traditional features of the buildings including the Victorian fireplaces and cornices.”

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