Property Prices Continue to Rise
Tuesday, 2 February 2010
Less than twelve months ago the headlines were being grabbed by pundits who predicted house prices would crash in the wake of financial crisis. The doomsayers have now been proven well and truly wrong, with Sydney’s median house price posting a remarkable gain of 12.1% in 2009.
A number of factors played in favour of the property market last year, with record low interest rates and generous first home buyer incentives pushing prices along. Australia’s escape of a recession also built confidence amongst buyers which has carried through to 2010.
An undersupply of housing will continue to affect the Sydney market this year. Renters will continue to face an extremely tight market, with vacancy rates sure to remain low and rents on the rise. The lack of new construction will also mean that home buyers will be forced to compete for a limited number of properties. While higher interest rates will temper the pace of growth, further price gains can be expected during 2010.
