Property Market Update post Federal Budget
The tough new Federal budget has met with mixed emotions from buyers and sellers in the Sydney property market.
While we noted some buyers initially seemed spooked by the harsh measures and cut backs, strong auction clearance rates in the immediate weeks after the budget seem to indicate any nervousness was short lived.
Australian Property Monitors Senior Economist Dr Andrew Wilson told Ray White Elizabeth Bay that auction clearance rates were the strongest they have been for some time for the weekend of May 24.
“The clearance rate was 79.3% while in the eastern suburbs it was 86.2%. There were about 800 properties up for grabs so that’s a lot of seller confidence,” he said.
“The last weekend in May there will be around 900 properties offered for auction which is a record for May. It will certainly be a big test and one to watch.”
Dr Wilson believes while there has been some “doom and gloom” surrounding the budget and expects there will be some “belt tightening” across the board, he believes Sydney will fare better than other parts of the country.
“The bad news is we will probably see a rise in unemployment and a drop in economic growth over the next two years. But the good news because of those factors, we won’t be seeing interest rates rising any time soon,” Dr Wilson says.
“Also, after Darwin, Sydney has the strongest economy of all the capital cities so it should continue to have plenty of energy and confidence.
“Of course there has been a flattening of the property market and things are certainly not as hot as they have been, but the market still seems steady and strong.
“So while there might have been some short term doubts and budget blues, I think they will fade when people see how strong Sydney’s economy is and how competitive the Sydney market still is.”
Impressive Recent Results
10/64 Penkivil Street, Bondi
26/8 Birtley Place, Elizabeth Bay
12/9 The Esplanade, Elizabeth Bay