Pinpointing the next boom in Sydney property prices has been a talking point of many experts for some time now. However, it has not been until recently that signs of recovery are starting to emerge.
Property experts say the looming boom in Sydney property prices, expected to occur during the next cycle, has encouraged increased demand for properties over the May quarter this year, and contributed to a slight increase in median prices over the period.
"The First Home Owners Grant and stamp duty exemptions have been contributors to the lift in growth figures, but there is an expectancy that the Sydney market is currently at the bottom of its cycle and set to grow, after the small amount of growth experienced over the last five years or so," says Pino Tedesco, director, Metropole Buyers Agency Sydney. "Buyers are currently jumping in to take advantage of this when it happens."
Tedesco says the stagnant climate of the Sydney property market over the last year alone has been unappealing for purchasers, especially investors. However, as the Australian economy continues to prove its resilience during tough times, growing confidence is encouraging investors back into the market.
"Little investment transactions have occurred over the last year, however with more confidence in the market over the past few months, people are now buying and at higher levels which is probably what is pushing up the median," he says.
Rich Harvey, managing director of Propertybuyer®, says finance for investors has also improved over the past few months, showing obvious signs of growing interest in the market.
"Investors are beginning to realise that property is pretty resilient in holding its value amongst these tough times," he says. "I see a lot of people sitting on the sidelines, but it is the savvy ones that do their research to understand the dynamics of the market, and buy what they can afford with a buffer, that do well.
Harvey says it is unlikely that Sydney's prestige markets will reach prices experienced during the 2004 - 2007 period where growth was strong, however the increased enquiries in this sector is a good indicator for future growth.