Signs are Good for Sydney Property in 2013
The New South Wales property industry is expected to earn a hefty $100 billion for the state every year. A report by the AEC Group (commissioned by Property Council), shows that the property market is responsible for 10 % of the economic growth of the state.
Although some other Australian states have benefitted from the advances of the Chinese economy, Deloitte Access Economics’ Business Outlook report suggests that it has been constraining the NSW economy. This can in part be explained by the fact that the boom simultaneously brought high interest rates and exchange rates.
Because the Chinese economy is now predicted to slow down somewhat, a number of positive effects for the NSW economy are expected and a number of these are likely to positively impact home loans and the property market.
The Business Outlook report says, ‘The Reserve Bank has already moved interest rates down, and chances are there’s more good news still to be had on that score.”
Although favourable changes are expected for the NSW property market, a moderately cautious approach is still recommended as the confidence of buyers remains fragile and the performance of housing markets continues to be fragile.