Could Sydney be approaching the bottom?
The RBA lifted interest rates again on Melbourne Cup Day to 2.85% in an effort to subdue our inflation which is tipping over the 7% mark. With peak inflation expected to arrive in December we can expect one or two more small rate rises before stabilising. Remember the interest rates are returning to a normal range after record low levels for quite some time and we are in a period of pain paying for running the money printer, quantitive easing to keep the economy going during COVID lockdowns.
Sydney is seen as the leader in cities when it comes to market movements. It is usually the first to move up and down with Melbourne not too far behind and other capitals waddling at some distance behind. It's no secret that the property prices have had a haircut after the recent boom however auction clearance rates have been on the improve.
Capital city auction clearance rates Saturday October 29th:
This along with price declines not falling as sharply in Sydney could be interpreted as approaching the bottom perhaps. Currently, home purchasers are showing an increased degree of buying enthusiasm, and appear to be meshing with prospective vendors who are now beginning to step back in and offer properties for sale.
We have been busy with 3 of our projects moving into construction phase with 6 slabs poured and the framing starting on one of these projects. We have also been working on some marketing renders for our Edwardstown site which have come up very nice.
Adelaide has been an outstanding performer over the last 2 years. The market there increased 44% over the COVID boom which beat all other capital cities. Although the growth has slowed in Adelaide there will be some opportunities that present themselves over the coming months.
If you would like to join us on a current project or discuss how you could partner with us on a future project please reach out.