In a positive sign for property investors, Sydney’s inner west and the northern beaches recorded positive one per cent quarter-on-quarter growth according to the REA Group report.
Although these were the only two regions in Sydney to record quarter-on-quarter growth, there are further signs the recovery gaining momentum with the 81 per cent auction rate clearance on the northern beaches recorded on the last weekend in June.
“We saw a bit of a price increase in June — it does look like it’s starting to move again,” said Nerida Conisbee, The REA Group’s chief economist.
Although there has been a drop in new listings, she said visits to the realestate.com.au site were on the rise.
“Every time we see a (interest) rate cut we see a bump in searches and this week was no different,” she said.
Property Confidence Is On The Improve
Improved capital growth expectations, lower interest rates and with a possible relaxing of APRA guidance on loan repayment obligations combined with renewed political certainty has led to an increase in confidence across the sector in NSW according to the latest ANZ/Property Council Survey.
The survey has revealed NSW property industry confidence has increased 17 index points from 109 to 126 over the quarter and has fallen 8 index points over the 12 months to September 2019. A score of 100 is considered neutral.
“Over the last 12 months, there is no doubt political uncertainty at a state and federal level matched with a slowing residential market has had a large impact on industry sentiment within NSW,” Property Council NSW Executive Director Jane Fitzgerald said recently.
“A strong NSW Budget 2019-20 delivered by the NSW Government with a record investment in infrastructure and solid outlook for growth despite reduced stamp duty revenue should help to drive confidence across the property industry.
What Does This Mean For Property Investors?
With spring just around the corner, which traditionally means an increase in property listings and stock coming onto the market, now is a great time to give the team at Plan Assist a call to discuss your next property investment moves to sure up your financial future.