Is Australian Economy going to get better with Sydneysiders moving to North?


The soaring Sydney house prices now seem to take a turn with the recent data suggesting that Sydney is now witnessing a gradual slip reflecting a cooling in the housing market. The September prices have fallen slightly when compared to scenario seen since 2015. In fact, the quarterly rise to September 2017 was a meagre 0.2% for Sydney in comparison to the quarterly rise of 3.5% last year. Further, capital cities rose 0.3% against 1% of 2016. Residential property prices rose 1.9% in the June quarter 2017, according to figures released by the Australian Bureau of Statistics (ABS); and signalled for the beginning of a moderate rise. Primarily, Sydney seems to be under pressure from the sluggishness in capital gains. The results from the recent Sydney’s home auction market support the scenario, and the sluggish auction clearance rates in a way signal for a relatively submissive home price results over the spring selling season.

While the correction in house prices in Sydney is creeping-in on one side, many Sydneysiders are looking at cheaper opportunities in tropical north. This move on interstate migration to the traditional Queensland region comes from the fact that house prices are half of that seen in Sydney. Precisely, there is a cyclic picture falling in place given the disparity in housing prices. Many experts are calling this shift to buying low in north as a driver to improve the Australian economic position considering improvement in mortgage based debt. There is a possibility that about $8.1 billion gets into Brisbane and southeast Queensland housing markets, and this would be about 25% of current turnover, while a loss of $8.1 billion would only be 10% of Sydney’s annual turnover, and thus is expected to have negligible effect on the market (as per Macquarie Bank research).


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


Leave a Reply