September 2017 Property Market Update
By Bernie Tynes
The Sydney housing market has been losing steam in recent months but still remains strong. As of July 1st, new first home buyers can benefit from exemptions on stamp duty to $650,000 and discounts up to $800,000. Annual dwelling values in Sydney increased by 1.4% in the month of July and +12.4 for the year. Also easing is the growth rate by quarter which has dropped from 5% in the March quarter to 2.2% in the July quarter. The year on year change in settled sales has dropped by 0.9% and the annual change in values of houses vs units is sitting at 12.8% vs 10.3%. This is mainly due to the higher number of units under construction and tighter credit policies from lenders, changes from APRA on the percentage lenders should offer on interest only loans and heightened caution from the investor market.
Auction clearance rates is also an indication of a slowing market with rates tracking less than 70% over the past two months. Gross rental yields are 2.7% for houses and 3.7% for units. Interestingly the number of net overseas migrants entering Australia increased by 16.5% in 2016 generating increased demand for housing with 76% arriving in NSW and VIC. There has been an increased movement to more affordable accommodation into Queensland (highest in 10 years) also contributing to the decrease in demand in NSW.
If you are looking to take advantage of these exceptional conditions or you are seeking a valuation of your property portfolio, please contact Michael on 0411 641 662.