There’s been a lot of New Year commentary on the Sydney and Melbourne markets. 2019 is already taking shape and here’s what I think…
Personally, I believe there are three sub-markets within both the Sydney and Melbourne housing markets (NOTE: this does not include units or apartments).
I see the top tier market continually performing well over the short and long term. This is the $4 to 5 million plus range.
The owners of these properties are high income earners where their wealth continues to rise with assets traditionally spread across multiple platforms including property, shares, and businesses.
I also see the first home owner market performing well, particularly in the short term where these two markets have seen a major increase over the past 3-5 years but have started to slow meaning FHO see opportunity and act, especially with lending restrictions relaxing somewhat. This price range is anything sub $1 million.
The market I see hardest hit over the next 1-3 years is the $1 million to $4 million range where Mums and Dads are staying put and seeing how it all plays out. This market is tough to buy into for first home buyers as repayments are substantial and the owners of this price bracket traditionally are NOT high income earners. They have simply seen growth in their own property meaning their debt is still manageable but they cannot afford to upgrade if they wanted to.
Any questions? Give me a shout.
Head Business and Property Educator
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