Sydney’s property market has its “best years ahead”, with prominent trend forecaster Bernard Salt predicting robust buyer demand going forward, particularly in inner and middle distance suburbs.
Mr Salt, talking at WBP Property Group’s latest Property Outlook breakfast, explained that the Sydney market is unique in Australia as it adds more people every year than Melbourne and has a reduced interstate migration since the GFC.
“New lifestyles, new ethnicities and new social behaviours are likely to drive demand for well-positioned investment property rather than lifestyle properties in the inner and even middle distance suburbs,” Mr Salt said.
“Put simply, Sydney is a big global city with critical mass in key infrastructure as well as corporate depth. Sydney’s best years lie ahead.
“Part of the reason behind Sydney’s resurgence is resolution of state governance issues and that simple fact that this city remains the Australian portal to the global economy. Sydney has the most head offices and Australian offices of overseas businesses.”
Macquarie economist Brian Redican and property commentator and property valuer, Chris Lackey of WBP Property Group also discussed the recently released NSW state Budget and the bearing it will have on Sydney property buyers and the state’s economy in 2012-13.
In particular, WBP Property Group NSW state manger Chris Lackey, discussed the implications of the doubling of the First Home Owners Grant for new homes, which comes at the expense of established homes.
“This is good for news for first home buyers who have previously found the new home segment unaffordable in Sydney. It will also stimulate the housing and construction sector which forms such a critical part of the state’s economy,” said Mr Lackey.
Mr Lackey agreed with Mr Salt about Sydney’s prospects.
“The Sydney market has become increasingly diverse with individual market segments responding to different drivers including supply issues, government tax incentives and housing strategy, rising cost of living, infrastructure, affordability, and social issues,” he said.
Lackey identified and shared his views of different segments of the market and how they will perform in 2012.
“Pittwater is a market that was hit hard by the GFC and has never really recovered representing a poor or risky investment,” he said.
“The inner western market is very resilient. To be holding its ground in the current market is a very positive sign for strong capital growth potential.”