Sydney property prices have been on a tear over the past couple of years.
We’ve seen a focus on investors and we’ve also seen a renewed focus from the government on foreign purchasers buying illegally.
But whether it’s investors or foreigners, the reality is that Sydney is simply an attractive destination for visitors and residents alike.
People keep coming. And the city, if not full, keeps filling up.
But whatever the impact of the crackdown on investors and illegal buyers is, it seems that longer term trends in the global jobs market are likely to continue to drive property prices higher.
That’s because technology is fundamentally changing the face of the global jobs market. It’s empowering workers to work where the want and because skilled workers are becoming a scarce resource, it’s becoming all about workers’ preferences.
And where they want to live is in turn driving flexible working arrangements. Crucially, where talent migrates, so will the smartest companies, says Indeed.com’s SVP Paul D’Arcy.
D’Arcy, who has identified 7 trends changing the face of the global jobs market, said that Australia, and particularly Sydney, was uniquely placed to benefit from the internationalisation of employment opportunities the internet offered.
“The internet economy is reshaping markets for talent,” D’Arcy said. He highlighted that in the past the “great jobs booms were centred around natural resources, such as gold and ore.
“When the world industrialised, jobs could be found where companies were based, whereas now jobs are wherever good talent can be found.”
It’s talent that’s the key in the new economy, according to D’Arcy. That’s good news for Australia because it is “one of the most desirable destinations for talent, which in the internet era can be a foundation for job creation and economic growth”.
That’s especially so for Sydney, which is the fourth most desirable destination for an increasingly mobile global talent pool.
In the same way that San Francisco is becoming unaffordable due to its proximity to Silicon Valley, D’Arcy’s research suggests that Sydney will continue to outcompete the rest of the country and indeed, the world, for global talent.
Like Dorothy and her merry band, it seems highly skilled, affluent and mobile workers are drawn to the Emerald City. That means the well-paying jobs will continue to flow to the city.
It doesn’t mean that Sydney prices can never fall. But it does mean that property prices are likely to remain elevated.