Understanding the property cycle – obvious and predictable news as South coast property on the rise as Sydneysiders chase good value
Latest news this weekend tells us that South coast property is on the rise as Sydneysiders chase good value, this is the next obvious step in understanding the property cycle.
The ‘hot’ area for price growth is the South Coast property market. We are told that this market has been dormant for years after the global financial crisis (2008) but now prices in the Shoalhaven area near Nowra and the pristine waters of Jervis Bay are growing faster than Sydney!
The ripple effect sees property price growth in Sydney’s outer regions
So let’s just have a look at how this is so predictable in terms of understanding the property cycle.
Anyone who did not realise that up until the end of 2015 Sydney was in a house property price boom must have been living in a country that was not Australia! The ‘boom’ seems to have been going on since around the middle of 2010. Now if you lived in Blacktown in 2012/13, you may have been wondering what the media were talking about when they said Sydney house prices were booming because there was nothing happening in Blacktown!
By the end of 2013 beginning of 2014 all of a sudde3n we are being informed that the highest growth area in Sydney is in the Blacktown area, all of a sudden prices just took off. However, people living in Liverpool and Campbelltown and even Wollongong could only scratch their head when they read that prices in Sydney were ‘booming’ because the price of their home hadn’t really changed much over the last 10 years!
By the beginning of 2015, the hottest growth markets in the Sydney basin were Liverpool and Campbelltown showing double digit growth – to be expected as the ‘ripple effect’ extended to our outer suburbs.
Basically, price growth starts in the centre of our major cities. As the inner suburbs become too expensive, the market ripples out to the middle suburbs. Over a relatively short period of time, these middle suburbs become too expensive so property buyers move out to the outer suburbs.
Today’s article is now informing us that this ripple effect has moved out of the Sydney basin and the greatest growth has now passed Wollongong and has reached the south coast market.
Understanding the property cycle is helpful in assisting the property investor choose the next ‘boom’ are for their next investment property.
Read more: http://goo.gl/lGql96
