Sydney buoyant in slump

Simon Hampel · 9th Oct, 2008

Sydney buoyant in slump - National - smh.com.au

SYDNEY is unlikely to experience the house price collapses affecting other international cities but the least expensive suburbs will outperform the top ones this year, says Shane Lee, the director of economic and market analysis at Citigroup.

"The credit crunch is having a significant impact on the Australian financial services sector which is now in recession. This poor performance is likely to weigh on the Sydney housing market over the next year as income growth in the industry falls," Mr Lee said.

"The lower end of the Sydney property market is likely to outperform the top and middle ends of the market over the next few quarters.

"Last year the top end of the housing market led the middle part of the market and it follows that the lower end of the market should see moderate price growth," he said.

Mr Lee forecast Sydney house prices to rise by 2 per cent in 2009 and by 7 per cent in 2010.

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BillV · 9th Oct, 2008

Sim

Thanks for the link.
It actually does make sense for the lower end to move first.
A 2% drop in interest rates would make some IP's cash flow neutral.

Cheers

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Sydney buoyant in slump

Simon Hampel Founder Staff Member

BillV Well-Known Member

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Sydney buoyant in slump

Simon Hampel Founder Staff Member

BillV Well-Known Member

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