Sydney Market Update With Leanne Pilkington: September 2017
It’s time for another Laing+Simmons market update, where we chat to Managing Director Leanne Pilkington about what’s been happening in Sydney’s property market.
We’re now well and truly into spring, and we’ve had time for some of the 2017-2018 Budget measures to impact the market. Leanne gives us her insights.
Spring has sprung
Spring is typically a buzz of activity for the property market. Right now, though, we’re not witnessing as much as usual.
There are signs we’ll see more listings in October.
“We are seeing fewer people coming through open homes and fewer registered bidders on auctions. There are not as many people in the market as there was. Some areas are getting a lot of stock but others are still struggling.”
Leanne believes there are signs we’ll see more listings in October.
Clearance rates are down, but not cause for concern
Auction clearance rates have received attention in the media lately, as they’re lower than they were at the same time last year. The weekend of September 16 saw the lowest auction clearance rate since December 2015, reported Domain, at 67 per cent. However, this does not mean you should worry about decreasing demand just yet.
“We have seen a decline in clearance rates,” acknowledges Leanne. “However, they’re still around 70 per cent, so we’re still in a stable market.”
In fact, the clearance rates we were witnessing this time last year are not something that should be welcomed, says Leanne.
“We’re still in a stable market.”
“There has been a lot of media coverage about clearance rates and a softening market. It’s important to reiterate that the 80 per cent plus clearance rates we were seeing last year are not a sign of a good market – they’re a sign of a market that’s running too hot.”
Budget measures resulting in decrease in Chinese investment
Since tax hikes for foreign investors were implemented in the 2017-2018 Budget measures and the Chinese government announced restrictions on foreign investors, we’ve seen a decline in the number of Chinese investors in the Sydney property market.
“Chinese investors have taken a backwards step so that’s good news for first home buyers,” notes Leanne. “However, it’s not necessarily good news for the developments that have been built on the back of the demand from Chinese investors,” she points out.
Stability predicted for the remainder of Spring
So what does Leanne predict for the spring season in Sydney property? “Prices won’t gallop ahead as they did last year,” she says. Instead, things should remain stable in the coming months.
For more information on what’s happening in Sydney’s property market, get in touch with the team at Laing+Simmons today.