Sydney vs other capital cities

Interesting article in a recent Domain issue about Sydney vs other capital cities in the current housing price market. Though Melbourne's median is creeping closer to Sydney's it now appears to be an overheated market, according to many experts who monitor prices.
Sydneysiders may well continue to struggle with one of the highest home unaffordability rates in the world at the moment but people in Melbourne, Brisbane, Perth and Adelaide aren't that much better off, according to this article.

APM head Michael McNamara had this to say about Sydney vs Melbourne:

McNamara says, Sydney's price growth has remained sluggish partly because of affordability. "It's the peak debt syndrome - Sydney householders can't take on any more debt.

"I would argue that, as those other capital cities' prices get closer and closer to Sydney, they'll experience strong headwinds, and many people from interstate will see that Sydney represents the best value that it has for many many years. There'll be a lot of moves here, which will start prices rising again."

"It's looking a very undervalued market at the moment; it represents better value than it's been for many, many years."

And for those considering a move elsewhere, he counsels against it. "You'll always get better value, dollar for dollar, in Australia's most global city," he says. "After all, do you want to live in a global city or in a Victorian city?"

and RPData's head researcher, Tim Lawless:

"2008 may spell the end of Sydney's outer suburban plight," he says. "Investors are likely to become more active, chasing strong yields and looking to diversify their portfolio out of shares and into bricks and mortar."

 

Jacque,

I agree with the above comment.
I know several people who have sold the majority of their shares
and have parked their cash into their LOC's.

I have done the same.

The only thing that stops me at the moment is the uncertainty
in the credit markets and the state of the US economy.

Cheers

 

Nice!

I'm also sitting tight on my development in Sydney awaiting more clarity on the state of the credit market and Aus economy. If those two variables weren't in play I'd be very upbeat on the Sydney property market.

But you play it as it comes, so I'm sitting tight for now as that is the most prudent course of action in the current environment. If it clears soon, then onwards and upwards!!

Cheers,
Michael