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

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Australian Economy, Uncategorized

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).


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