Sydney has performed exceptionally well in the property market for the past 12 months, leading all capital cities. While the demand has been high, property values have followed suit, making Sydney one of the costliest cities in the world, ranked 5th by the Economist’s latest Worldwide Cost of Living Survey.
Property prices in Sydney have prompted investors to be wary of the future. Recently, consumer confidence has declined because wages haven’t kept up with the increase in property values. John Edwards, founder of Residex predicted Sydney’s annual growth to a much slower 4% in the next five years because of these factors.
As with any market, affordability will ultimately limit growth. For as long as this is not addressed for Sydney, houses will be out of reach for consumers, a clear sign that the city is nearing its peak.
Read more about this on the Your Investment Property website.