Why you should ignore Sydney property doomsayers
Has the Sydney property market peaked?
The headlines use the word "pivoted", claiming the boom is over and the phenomenal growth has come to an end.
But it is irrelevant commentary because nobody is simply buying "Sydney" real estate!
Instead, they are buying a single property in a localised street in a localised neighbourhood within a highly fragmented property landscape.
Property is an essential need and remains that way whether the market is going up, down or sideways.
So how should would-be investors navigate this challenging real estate market? You need to focus on the core fundamentals.
Here are the signs to look for (at suburb level) indicating that demand still exceeds supply:
- Days on market - are buyers still eagerly snapping up properties or are they hanging around?
- Stock on market - is the suburb undersupplied or are there plenty of listings?
- Auction clearance rate - are most properties still selling at auction or are they passing in?
- Vendor discount - are buyers still meeting sellers' demands with little or no discounting?
Remember, there are more people using property for shelter than for investment, so look past the headlines to pick out the investment-grade gems in locations where demand still outstrips supply.