 Sydney prices on upward wave
Property prices in Sydney are set to rise, as an increase in population together with a shortage of housing will put pressure on the market.
Kevin Young, president of Investors Club, remembers when between 2002 and 2004 similar circumstances had the same result.
He said Sydney property costs have been receding for the last five years. "In contrast," he commented, "other capital cities have recorded major growth in their median house prices during this five-year period, with the median house price in Perth, for example, jumping by around $200,000.".
Nationally, house prices have held steady in the June quarter as ABS data shows average gains of 4.2 per cent, confirming the rise already seen in various private sector surveys. Sydney boasted one of the biggest gains, with the median price rising 3.7 per cent for the quarter. Credit is being given to the fact lending standards were far higher in Australia than in the US, and another major factor is Australia's housing shortage.
The sharp falls seen in US and UK house prices have not materialsed here. From their peaks US house prices have fallen 32% and UK house prices have fallen 19%.
By comparison, Australian house prices have only had a modest dip and seem to be already on the way back up.
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