Brisbane holds steady, whilst Sydney and Melbourne experience market corrections
Finally, a sane point of view in the reporting of the property market, reflecting my own thoughts.
Dr Nicolla Powell who is a Data Scientist for the Domain Group, shared these statistics today.
Traditionally the property cycle is from 7 to 10 years, however we are seeing those cycles becoming shorter. It is my opinion because of migration and shortage of housing in sought after suburbs.
Putting the growth and correction of the major city markets into perspective, I share this information with you.
Whilst the downturn in the Sydney market was at 6.9% for the last 12 months, Sydney has enjoyed a 89% growth over the last 6 years! That is an average of 14% per year. That kind of growth in my opinion is unsustainable and we are now seeing a correction.
The downturn in Melbourne was 3.2% after also enjoying a steady growth over the last 6 years. Still not alarming figures in my opinion.
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Bucking the trend along the east coast was Brisbane, Canberra and Hobart.
Brisbane saw a growth of 2.2% for the last 12 months, and has been enjoying a consistent growth (except for the inner city apartment market) for the last 6 years. Post GFC, Brisbane became a less reactive market and began a consistent growth market, obviously not at the rate of Sydney or Melbourne. It is my opinion that Brisbane will still continue to enjoy a steady growth, particularly in the suburbs which fall into highly sought after school catchment areas.
Canberra enjoyed a 4% growth over the last 12 months whilst Hobart is still experiencing double digit growth because of the shortage of housing.
In a nutshell, the sky is not falling!
The property market is following the traditional path of a property cycle, it isn’t experiencing the doom and gloom being touted by some media platforms. Like anything in life, some perspective has to be considered!
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Complimentary Local Market Report | 2018
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