Sydney has long worn the crown of the country's standout property market, but could this all be about to change? Results of the September quarter CoreLogic RP Data – TEG Rewards Housing Sentiment Survey seem to suggest so, as the city looks set to witness significant price correction.
Respondents were asked whether the country as a whole would be likely to face property price corrections, and 68 per cent of them said yes. Although the proportion is high, it's still down slightly from the 75 per cent who said the same in the previous quarter.
"While we don't envisage dwelling values will fall substantially, the probability of declines in Sydney, and to a lesser extent in Melbourne, after such a strong run of capital gains isn't unlikely," noted CoreLogic RP Data head of research Tim Lawless.
This could make the cost of buying real estate in St George more affordable, although taking a wait-and-see approach might not always be the best option.
Foreign investment is perceived as one of the main drivers behind this trend. Almost all (95 per cent) of survey respondents said they believed this was pushing dwelling values upwards. Furthermore, 19 per cent revealed they think extreme pressure is being placed on the market by this group.
Details of the October CoreLogic RP Data capital city index show Sydney's popularity as a destination for investment is unlikely to slip anytime soon. Total gross returns on property in the New South Wales currently stand at 19.7 per cent – the highest in the country.
Meanwhile, the median dwelling price was estimated at $800,000, which is $200,000 higher than its next-closest rival, Melbourne. There will nevertheless be plenty of real estate in St George that falls into a much lower price bracket, and one of our experienced agents would be happy to show you.