There were reports last night that the Sydney property market is starting to slow down as we finish another weekend that resulted in lower clearance rates with the average of around 70% instead of 80%. There were also reports from auctioneers and real estate professionals that bidders seemed less bullish.
So while this isn't that surprising to the researchers at Calla Property, what is surprising is that people are still investing in the Sydney property market when we're clearly at the top of the curve. There are still long lines of buyers queuing for (some) off-the-plan sales of new apartments and as an example of the madness, 1 unrenovated 3 bedroom apartment in Coogee sold for $2.24 million. To an investor! Why would you want to invest in a market that's coming off the boil, with low returns and high holding costs?
At Calla Property, the Sydney market position is not a surprise. For sometime, we have picked that this market is on it's way to busting after an incredible boom period. Rental returns have been softening, even dropping in some areas of early oversupply, off-the-plan sales haven't been as robust and now auction clearance rates are dropping. This is why it is so important to talk to the professionals who research the Australian property markets full time. When you do, you will find that you can invest in the right markets at an affordable price with low holding costs and great yields. Call us today on 0482 080 189 to find out more about how you can make money out of property and what market is the next wave to ride.