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Slump in Sydney property market
The last four years have seen the Sydney property market experience a slump brought about by three interest rate rises, soaring petrol prices and low employment rates and lack of supply
Market analysts predicted that this year would see a surge in activity in the Sydney property sector, and those predictions seem to be coming true, although this surge is happening at two different rates.
The top end of the Sydney property market didn't suffer during 2006, and remains the only area to have forged ahead thanks to record-breaking share market returns, large executive bonuses and a widespread lack of stock, reports the Morning Herald.
Meanwhile, Sydney suburbs such as Macquarie Fields, Campsie and Lakemba experienced the worse property price drops in 2006 and concerns remain that Sydney's west and southwest are still experiencing a down-turn. Indeed, in the March quarter of 2007 it was the South West region that was worst hit, retreating by six per cent.
"It clearly shows there is a two-property market happening in Sydney and we believe that is going to continue," Australian Property Monitors housing expert Michael McNamara told the Morning Herald.