Sydney’s property market is red hot and, according to industry analysts, it is showing no signs of slowing.
Just last week figures released by CoreLogic revealed that prices in Australia’s largest and most expensive housing market have increased 20% in just 12 months.
So with this in mind we were somewhat shocked to hear that someone thought Sydney property was “cheap”.
But according to Andrew Hay, global head of residential at property consultancy firm Knight Frank, is it — in context.
“Within a global marketplace Sydney does look cheap, there’s no doubt about that,” he told Fairfax Media.
While he said Sydney and Melbourne have increased their rankings in terms of global desirability — Sydney is 11th and Melbourne is 20th on the Knight Frank City Wealth Index — they still have some climbing to do to reach the likes of London and New York which topped the list.
Knight Frank just released its 11th annual Wealth Report, which provides statistics, analysis and predictions to the world’s High Net Worth (HNW) and Ultra High Net Worth (UHNW) individuals.
“Locally, Sydney property may feel expensive now, but compared with other global markets it’s mid-range,” Hay says. “It’s still, in a global context, quite affordable.”
But as the world’s super-rich increasingly lean towards markets which offer financial security, Hay says Australia is considered a “safe haven”.
While he agreed that Sydney is certainly challenging for the younger demographic looking to get into property market, and said the government should intervene, he did not believe that it was “heading for a crash”.
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