JUNE 2016 PROPERTY MARKET UPDATE

june 2016 property market updateSydney Property Market Review – June 2016

Data recently provided by Corelogic provides an overview of the Sydney property market. The year to date change in dwelling values has increased by 7.7% (5% for Melbourne) for the first 5 months of 2016 and 13.1% higher over the past 12 months.  Capital growth for the quarter is 6.6% and the median dwelling price is $782,000. Auction clearance rates in Sydney are holding the mid 70% level since April.  Lower mortgage rates have had a positive effect on consumer confidence and housing market conditions with the standard variable mortgage rate at its lowest level since November 1968. Annual growth rate has slowed significantly from its peak growth of 18.4% in July 2015 but has accelerated from 7.4% since March this year.

The volume of residential property for sale is 26% higher than a year ago and we may see the Sydney residential property market shift more in favour of buyers than sellers as the year progresses. The change in dwelling values from the beginning of January 2009 to the end of May 2016 has increased by 85.7% (70.5% Melbourne) and 58% over the past four years.

Gross rental yields have fallen in Sydney as capital gains have substantially outweighed rental gains and subsequently Sydney gross rental yields have trended lower. In saying this, property remains a popular investment option despite the lower yields as long as capital gains remain strong versus the returns being offered by cash and bonds and the volatility in equity markets.

Some lenders have recently relaxed their previous restrictions on loans for investment purposes which may result in a rebound in property demand in this segment over the coming months.

If you are looking to capitalise on the current market conditions and sell your investment property, why not obtain a FREE, no obligation market appraisal? Simply call the Infinity Property sales team on 9699 9179 or email infinity@infinityproperty.com.au with your property details and we will get back to you with a comprehensive market report.

Author: Bernie Tynes, Marketing Manager Infinity Property Agents

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About Infinity Property Agents

Infinity Property Agents manage the sale, property management, leasing, valuations, cleaning of properties in East: Maroubra ,Kingsford and Kensington Lower North: Mosman, Neutral Bay, Crows Nest and North Sydney Inner City : Alexandria, Waterloo, Zetland and Rosebery As an independent property management company, we offer a more personalised service, with over 400 happy clients and a dedicated team of property professionals with expertise of over 20 years experience in the local property market. We are always on the look out for talented agents and welcome contact via our website at http://www.infinityproperty.com.au/
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