Sydney houses priced under $1 million are at six o’clock on the property clock and at the bottom of the property cycle, according to Greville Pabst, CEO of property valuers and consultants WBP Property Group.
However, Pabst does not expect to see an improvement in Sydney house prices in the short term, with the prestige market still favouring buyers.
He also places the unit market at the bottom of the bottom of the property cycle, but with better prospects for price growth.
- At 12 o’clock the market is at its peak (demand exceeds supply)
- At 3 o’clock the downswing has set in (an evenly supplied market)
- By 6 o’clock it has bottomed out (an oversupplied market)
- At 9 o’clock the market is rebounding (supply tightening)
Looking at the prospects for the detached Sydney housing market, Pabst says there may be increased activity within the market place assisted by the lower interest rate climate with potential for further reductions.
“I can’t see sustained increases in prices however until overseas market volatility subsides and confidence returns. We are going to bounce along however overall trend will be flat,” he says.
Pabst says the prestige market could have further to fall, "depending on where you are in Sydney".
“Northern beaches, for example, remains a buyers’ market and discounting is still significant. These markets may be a five on the property clock.”
Pabst says Sydney units remain at six o’clock, but “we may see some price growth due to higher price new units being sold off-the-plan depending on when they settle.“Unit prices otherwise won’t see significant change,” he says.