Tue, 2008-03-04 22:16 — Guest
Andrew Donnelly of Branxton Chase comments on Sydney property cycle
Tuesday 4th March 2008
Property cycles in the Sydney residential market typically last between 8 and 12 years and Branxton Chase believe that the current cycle will be no different. Since the completion of Sydney's last property cycle in 2003, astute investors are now facing a major window of opportunity to enter the market, as long as they can identify quality properties in outperforming suburbs.
Whilst no one can accurately predict the beginning of the next upturn (it could be as early as 2009 and as late as 2012), the doubling of prices in the Sydney market is usually picked up in the final 2 to 4 years of each cycle (e.g. Sydney 78-81, 87-89, 98-03) and this could well be the case again here.
Whilst Braxton Chase does not wish to be seen as an organisation that promotes 'market timing', (residential property is about long term investment), there is a clear opportunity for investors to build unrealised equity in a property portfolio in the next few years.
Residential construction is at its lowest level in decades and there is a significant undersupply of new housing, leading to record low vacancy rates in Sydney of about 1%. There is also strong pent-up demand from investors keen to avoid short term risks.
Branxton Chase believe that Sydney's property market has reached the bottom of its current cycle and prices in many areas are as low as they’ll get, meaning it's a buyer's market. Are you ready for the next big wave?
Preparing for the next big wave requires planning and positioning with finance. A finance broker can be an invaluable resource in managing and maximising investors finance.