Welcome to our first housing market update for 2015. After record breaking results in 2014, we have hit the New Year running with our most recent sale taking just 3 days at a record building high.
Next RBA decision is due on February 3. RBA is likely to leave the official cash rate at 2.5 per cent during 2015, with a cut more likely than an increase within the first half of the year due to softer Australian economic growth and further weakness of the Australian dollar.
The lower oil price and a slightly improved unemployment rate suggest that for the current period at least, there will be little change in the official cash rate.
A strong December period and continued to a lesser extent into January with fewer homes on the market in January as buyers rushed to secure purchases ahead of the Christmas period. Demand still remains firm with most capital cities showing unprecedented strength in the latter stages of 2014. Director of Infinity Property Agents, Michael Kurosawa recently sold a St Leonards property in just 3 days! “In the current market, our greatest challenge is building new listings after a record breaking year in 2014.”
Recent ANZ/Property Council survey of 1,950 industry respondents around Australia on property sales, construction, price growth and broader economic concerns indicated that in Sydney respondents recorded a fairly strong outlook with a score of 146 (100 is neutral). Although they feel that housing sales and price growth have softened since the 2014 peak, they continue to reflect strong home buyer sentiment.
The recent Domain rental report indicated that rents remain at or near their record levels in Sydney despite record levels of investment and new apartment growth. Upward pressure on rents is set to continue in Sydney in 2015. Unit vacancy rates are around 2.5% in Sydney and 2% for houses. The median weekly asking rents in Sydney is $520 (house) and $500 (units) , up 4% for the year and 2% for the quarter. Gross rental yields for houses was +4% and units +4.48% in December but down 6.4% (houses) and 5% for the year (units).
Our achievements in 2014 were a result of higher levels of service and in 2015; Infinity Property Agents’ vision is to take the Sydney market to new highs. We are looking to expand our service offering this year with potentially a new larger office and double the number of staff.
If you are keen to capitalise on the current market conditions, looking for one of Australia’s best property management services, require a qualified market appraisal on your home or rental property or looking to buy an investment property, please contact Michael Kurosawa on 0411 641 662 or our sales team on 9699 9179.
Visit us online at http://www.infinityproperty.com.au
Author: Bernie Tynes