Sydney residential property values to remain stable in 2009-10

WBP Property Group, the national valuation and property services firm, this morning announced that the Sydney property market had shown marked improvement with property values returning to their 2008 peak, now offering good investment opportunity. 

Speaker, Dr. Nigel Stapledon, Associate Head of Economics, UNSW, predicted a positive outlook for Sydney, suggesting it is likely to fair better than some other capital cities, particularly those dependent on more volatile market drivers. Of Australia’s performance, compared with international markets, Dr. Stapledon commented, “Good fiscal policy and record low interest rates have set Australia apart from other nations such as the US, who have experienced severe downturn.”

Largely dominated by first home owners, property at the lower end of the market continued to move in August with clearance rates in excess of 70 percent. Chris Lackey, WBP, NSW State Manager, noted that “the number of first home buyers as a percentage of total borrowers, dropped slightly this month,” figures indicating that activity in this segment of the market may have begun to cool. Yet, despite strong grant incentives, Lackey stated that interest rates remained the fundamental motivator of most purchasing decisions.

Lackey acknowledged that prestige suburbs such as Mosman, currently offer good opportunity for owner-occupiers looking to upgrade, prefaced, by the fact that many of these suburbs had fallen in value by as much as 30 percent. However, “while the prestige end of the property market sustained drops of between 15 - 30% the middle to lower end has experienced relatively minor impact, propped up by the resurgence of the first home buyer market,” said Lackey.

Lackey also referenced the resilience of the unit market, stating that, “Sydney has a chronic undersupply of units. A relatively affordable alternative to houses in Sydney, units are in big demand and have subsequently shown some growth in the current market.” Comparatively, residential houses showed little movement following the recoup of losses sustained at the end of 2008. This is a positive result for the Sydney market,” said Mr. Lackey.

The Sydney Property Outlook seminar was hosted by WBP at Sheraton on the Park in Sydney. Presenters Dr. Nigel Stapledon, Associate Head of Economics, UNSW,  Chris Lackey, WBP NSW State Manager and Margaret Lomas,  Director of Destiny Financial Solutions, provided an overview of the macro and micro factors that influence the Sydney property market, discussed forecast performance for 2009-10 and highlighted some urban and regional 'hot spots' for investors to watch closely.

Media Contact:
Nicholas Brittain
WBP Property Group
03 9322 4906 or 0414 572 434
nicholasb@wbpproperty.com