Variations in performance across the state are becoming clearer as top markets grow while regional areas slow
Dwelling prices in Sydney continue to increase, but at a stunted rate compared to recent growth. And for the first time in the past five years CoreLogic data indicates that unit values in NSW have been stagnant.
“The banks led by APRA have yet again tightened lending, making it harder for investors to obtain finance, in a bid to stop any bubble bursting,” says Walter Nanni, buyer’s agent at Cohen Handler Sydney.
Indeed, with affordability being a significant problem for Sydney, the restriction on investor demand that has been slowing down growth could be the breakthrough owner-occupiers need. First home buyers have been capitalising on the new benefits that allow them to get into the property market.
“They finally have the edge over investors, which will make it interesting in the coming months as it could throw the market into a mini boom as they stir things up,” Nanni comments.
Along with the drop in investor interest, a large amount of supply, mainly of apartments, has been flowing into the market, spreading out demand. The suburbs in western Sydney have felt the brunt of this new influx of supply.
“The ripple that we’ve seen push out from the east inland may start to ripple back as we may well be starting to see the end of the boom,” Nanni adds.
While blue-chip suburbs continue to perform as well as they have always done, due to limited stock and high demand, infrastructure projects could dictate how the Sydney market moves going forward.
“The biggest game changers that Sydneysiders will see is the current money being spent on big projects, all surrounding our roads and transport.
“All this should affect prices and affordability as the city becomes a quicker place to travel to and from,” Nanni explains.
These events in the property market could be the reason why confidence levels have slipped in New South Wales.
According to the ANZ/Property Council Survey findings for July 2017, NSW suffered the most significant drop in confidence of all the states. This result highlights that consumers have lower expectations from Sydney in terms of capital and economic growth, even though the job market is anticipated to remain strong.
“We need the state government to take action to strengthen the housing supply pipeline in New South Wales,” says Jane Fitzgerald, director of Property Council NSW.
“Tighter debt financing has provided a breather for house prices, yet we will only see lasting relief if we see a wider raft of reforms implemented.”
SUBURB TO WATCH
MOSS VALE: Winning holiday spot in convenient location
Moss Vale is a township in the Southern Highlands of NSW, around 120km from Sydney. Strategically located on the Illawarra Highway, which connects to Wollongong and the Illawarra coast, Moss Vale is home to around 8,600 permanent residents. It’s a popular spot for holiday-home investors who desire their own slice of the area’s charming French-country-style property.
The region is home to several heritage buildings and in the centre of the main street is Leighton Gardens, a beautiful green space where people can picnic and play. Local facilities include the Aquatic Centre, a TAFE campus and a train station, along with plenty of schools and daycare centres, and a number of shopping options.
Holiday homes: This is a popular country getaway location
Location: Moss Vale is strategically located near Wollongong and Illawarra
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