Sydney’s property market has received a lot attention recently when, after years of strong growth, prices in Australia’s largest and most expensive city fell in the past two months.
And, if the early indications are anything to go by, it looks like that weakness has extended into the early parts of November, coinciding with auction clearance rates dropping to below 60% for the first time since January 2016.
It’s dominated the headlines, probably much to the disgust of all those who don’t own or live in Sydney.
At Business Insider Australia, we too have been focusing on recent developments, but it’s not just because we’re based in the Emerald City.
As this excellent map from CoreLogic reveals, the Sydney property market is a behemoth, accounting for close to a third of Australia’s total housing worth.
Melbourne, another city that steals many a housing headline, comes in a distant second place at 26.3%.
Given the store of housing wealth in Sydney, what happens in that market will be felt in other parts of the country, influencing interest rate settings from the RBA, the outlook for economic growth, labour market conditions and, in some circumstances, what may happen in other housing markets in the future.
It’s not the Australian economy by any means, but it is an important part of it, just like the mining sector was during the twin commodity booms seen either side of the global financial crisis.