As Sydney’s property market shows a clearance rate of over 70% for the third consecutive week by mid March, analysts are optimistic of a return of strength here. Given that 2010 was the last time this property market seemed to be in favour with buyers, this is a very positive development indeed.
Great Expectations for Easter Sales
Analysts are also having great expectations from Sydney for the Easter sales. This is the time when hundreds of houses come into the market for sale across the country. In a strong marketplace, the sudden abundance of supply will not impact prices adversely and analysts are confident that this is what will happen here. However, the facts will become clearer during the period leading up to Easter which will be a strong test for the Sydney market as a whole. Typically, a 60 to 70% sale will show that the market has turned in favour of the seller.
70+ Clearance Rate Validates High Expectations
Of course, the Sydney market has demonstrated its growing strength in the recent weeks with the over 70 clearance rate paving the way for positive forecasts. When compared with the same period from the last year, the rate is up by almost 20%, which is quite a significant improvement beyond doubt. One of the interesting features about the market is that prestige properties seem to be enjoying their time ‘in the sun’. Several properties with a more than $2 million price tag have changed ownership in the recent weeks showing that investors are not averse to high end offerings here.
Will Prestige Properties Soar?
The question is ‘Will prestige properties draw sustained interest?’ Since this market is closely linked with the job market, and in particular white-collar jobs, there is some doubt about whether the interest in luxury properties will be sustainable. With employment levels in these job categories still remaining subdued, it may be too optimistic to expect a complete rebound in prestige properties.
However, investors should remember that inner west Sydney with its clearance rate of 84% is a clear winner when it comes to lucrative real estate investment destinations. High end properties may take a while longer to fully recover in Sydney but meanwhile, other property market segments are faring better than ever before to make up for this. Low interest rates and growing confidence will continue to support sales in these segments.