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Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24 with Rich Harvey Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

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Did the Sydney housing market just yank the handbrake?

May 16, 2017 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

Feel that whiplash? After strong growth for several years, Sydney's market just pumped the brakes in a huge way. CoreLogic RP Data's indices for April show that across the month, there was precisely 0.0 per cent growth in dwelling values.

Now, one month of stalling isn't enough to call this a longer-term plateau - a month is just a month. But it could point to some interesting changes for house hunters in the country's hottest property market.

Getting some breathing room

Rather than any kind of overwhelming failure, I think this is just the market taking a breather. As Tim Lawless from CoreLogic pointed out, this April had a lot of mitigating factors that could prevent people from buying - ANZAC weekend, the long Easter break, and the school holidays. Many buyers might have been out of the city, or too busy with the kids to buy.

The Easter holidays might have caused the break in Sydney's property growth.
The Easter holidays might have caused the break in Sydney's property growth.

We're also heading into winter, when many buyers decide to shut up shop and wait for spring (although that opens the door for opportunistic buyers to pick up a deal with lower demand).

You've also got the APRA lending restrictions, which have had an immediate impact. Lawless noted that half of mortgage lending in Sydney is going to property investors. With APRA targeting this exact group, it should come as no surprise that demand (and value growth) will take a hit.

So yes, the market's hit the brakes. But this is the property market we're talking about - a breather can be a good thing.

Time for the canny property investors to shine

One thing with Sydney's halt in growth is that it may put a lot of house hunters off. Investment property in Sydney has long been a golden goose for people looking at capital gains, and this break in value rises could give a lot of the market pause.

What you have to remember is that a) this isn't necessarily a downward trend, and b) in the long term Sydney real estate is just going to keep on rising. If the quiet April means many buyers decide to halt their investment plans, it can effectively reduce your competition, giving you more power at the negotiating table.

Want to get in before winter sets? Talk to one of the buyers' agents at Propertybuyer to get started.

The Propertybuyer
Podcast

 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 
 
Mon 12 Feb '24
with Rich Harvey
Decoding Sydney’s North Shore Market – Outlook and Opportunities.
 

 

Listen to many more
podcasts on our
Podcasts page.