Sydney property market update June 2019. As we have indicated before, we did not expect The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry to have significant impact on Sydney property prices.
June 2019 Sydney property market overview
May has shown that Sydney property prices have continued to decline. However, also as we have estimated before, the pace of the decline has moderated. As shown in the graph below there has been a bit of recovery in Sydney process after the federal election. However, we don’t think this recovery is indicative of trend yet.
Sydney property prices have declined -0.5% over the month and this brings us to a decline of 2% over the quarter. The annual decline for Sydney property market is almost 11% so far. Median house prices in Sydney are now a touch under $800,000.
What will Sydney property prices do?
Will Sydney property prices increase? If RBA does proceed with cutting interest rates, we can expect interesting times ahead for property market. Especially so that yields in Sydney remain compressed. Sydney remains the lowest rental yield market in the nation. With interest rates falling, this might provide support to property prices in the city. We don’t expect recovery in this year yet. As indicated before, we expect Sydney price falls to moderate towards the end of 2019 and head sideways for a few years afterwards. We will remain observant of this market. If the federal government enacts policies to revive the property market in Sydney we will endeavour to update.
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