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Staff Reporter
A leading network CEO is reporting 150 per cent growth in the number of investors selling property in western Sydney.
CEO of Starr Partners Douglas Driscoll described the trend as investors “cashing in their chips” and selling their properties to capitalise on the exceptional growth in property values in Sydney’s west.
Key areas experiencing this growing trend include The Hills, Erskine Park and St Marys.
“Some investors are beginning to question if this current market growth is sustainable,” Mr Driscoll said.
“They’re keen to sell now while consumer sentiment is strong and the market is still in its ascendancy. Some even fear prices may slump as we head into 2014.
“It is interesting to see this emerging sector of the market, as it clearly bucks the trend. Whereas most investors are ‘zigging’, there are now those who are ‘zagging’.”
Mr Driscoll added that any talk of the ‘bubble’ bursting was premature.
“What a lot of people fail to consider is that it isn’t always boom or bust. There will inevitably come a point where the market will naturally plateau.
“In my opinion, we have around another 10 per cent worth of growth to reach before this happens. This could take place over the next six months, year or two years – it’s too early to define,” he said.
This growth coincided with the release of Australian Bureau of Statistics (ABS) data, showing the number of Australian property purchases made by first home buyers had dipped to their lowest level since records began.
“Purchasing isn’t going to become easier for first home buyers any time in the near future,” Mr Driscoll said.
“Barriers to securing a property will continue as the investor market climbs to reach its saturation point. Despite vacancy rates beginning to creep up and, in some areas, rental returns falling lower than that of last year, investors will continue to buy well into 2014.”
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