Property investors told Sydney’s time has passed
Sydney property investors have been warned that the city may have passed its peak.
A research report by property investment advisor Momentum Wealth has claimed that supply and demand indicators in Sydney show the city’s strongest growth has passed. The company urged investors to look at other capital cities for better returns.
“While it’s impossible to predict how much longer Sydney’s up cycle will continue, our research report highlights an easing in several key market indicators suggesting the strongest capital growth in the current up cycle has passed,” Momentum Wealth managing director Damian Collins said.
The report found Sydney properties are taking longer to sell, while the number of properties transacted has fallen and dwelling approvals have plateaued. The company also pointed to the threat of apartment oversupply.
“While the long-term outlook for the Sydney property market remains positive, the short-to-medium term view isn’t as rosy,” Collins said.
Momentum Wealth argued that affordability issues were also pricing buyers out of the market. The company urged investors to seek out higher yields in more affordable capital cities.