Market Update – March quarter 2009*
|
Sydney |
Mar
quarter median
|
%
change
Dec 08 – Mar 09 |
%
change
Mar 08 – Mar 09 |
|
House Price |
$527,000 |
-0.5 |
-4.4 |
|
House Rent (3 b/r) |
$350 pw |
0.0 |
+9.4 |
|
Unit
Price |
$364,000 |
+0.8 |
-1.5 |
|
Unit
Rent (2 b/r) |
$400 pw |
0.0 |
+11.1 |
|
Vacancy rate |
1.2 |
-0.2 |
+0.2 |
*
This is the
most up to date available - property data is released 3 months after the end
of each quarter.
Source: Real Estate Institute of Australia
Comment:
The Great Property Shortage
2009/10 is
shaping up as one of the deepest periods of undersupply in Sydney’s
residential property market on record. After 6 years of declining building
approvals and strong population growth - there is simply not enough property
to go around.
The rental
vacancy rate, which we regard as a leading indicator of state of supply and
demand in the market has remained below 1.5% since February 2007, and the
latest monthly figures show it at 1.0% (May 2009).
This has
created enormous pressure on the rental market, which is facing shortages
across the entire metropolitan area, with the outer suburbs experiencing the
lowest rental vacancy for 11 of the last 15 months, which has also been
where the highest rental growth has occurred.
Buying
conditions are the best they have been since 1986. The seeds are sown for
the next cyclical upturn in prices notwithstanding a potential (and welcome)
delaying effect from current economic conditions.
Quartile
strongly recommends middle to outer distance medium density Sydney
residential property, up to and around the current median value of $364,000.
Detailed
Market Information:
For more detailed property market information
click here,
or contact Quartile
toll free on (02) 9499 4999 or download the latest
Sydney Residential Property Market Report.
