Whether you intend to enter the Sydney property market as an investor, a seller or a home buyer, you may have to go through mountains of statistical data to learn more about your property options. A problem most new property investors, first home buyers and first time sellers have, is not knowing which of these statistics really matter. Capital Wealth Property has narrowed down all of these stats into 5 Sydney property market stats that will let you know the status of the market.
At the moment, median house price is the best way to understand how the Sydney property market is performing. Once you have chosen a suburb or an area, you can easily find the median house price to understand whether the prices are growing or falling. At the moment Melbourne and Sydney are displaying price growth while the median house prices at Perth have dropped by more than 5%.
Auction numbers and clearance rates
The clearance rates at Melbourne and Sydney are showing the weekly performance of the market. Clearance rates above 80% indicate very strong conditions, 60% - 70% indicate moderate conditions and below 60% indicate a slow market. The number of auctions is also an important indicator. The number of auctions in Melbourne has dropped a great deal while clearance rates are close to 80%. This is a sign of a market that is slowing down. Sydney’s market is reported to be strong with rising auction numbers and a growing clearance rate.
An increase in rental rates in combination with increased median prices is an indication of as strong market. At the moment, Adelaide, Perth, Brisbane and Darwin are displaying declines in rental rates. None of these cities are displaying annual rates exceeding 2%. This is a slow growth rate that shows that the demand for homes is declining.
The upcoming supply numbers will tell you whether there is too little or too much housing under development. You can access this data on the ABS along with indicators such as commencements, completions and housing approvals. For instance, Perth is showing low rental rates, low house prices and high development approvals.
Low interest rates have always been a key investment driver in housing. When the funding is available at lower interest rates, people borrow more and drive up property prices. At the moment, we are noticing record low interest rates. A continual decline is expected in the future.