April 2017 Director's Desk
Friday 21 Apr 2017
Who to blame
I think it’s human nature to look for someone to blame when things don’t go according to plan and that certainly happens in the high pressure, high emotion environment that is residential real estate. At the moment, with demand so tight, buyers and renters are frustrated at not being able to secure their dream property and they are looking for who is responsible. So who is to blame?
Let me be clear that I definitely don’t think a strong residential property market is anything but a good thing, but I do understand the frustrations of buyers and renters impacted by the continuing high demand and tight supply we are experiencing in Sydney.
As I said in my blog this week there has been a long held belief that the Sydney market has been buoyed by intense interest from international buyers. They were the ‘baddies’ who were pricing domestic buyers out of the market.
But that is no longer the case. International buyers are still active but most of the demand across all price brackets and in all the areas represented by Morton is coming from local buyers. As one of my agents explained those buyers are often buying and selling in the same market, so they are not as price sensitive, but as local residents and looking for somewhere to live so they are making very emotional purchases.
I think the fundamental truth of the matter is people want to live in Sydney. It is a beautiful city. The harbor, the beaches, the climate, the facilities; It is a world class city. Sure there are issues. Traffic can be a nightmare, but while congestion might influence decisions on exactly where in Sydney to live the fact remains that people want to live in Sydney.
That’s why demand is strong and prices are continuing to rise. There is no ‘bad guy’ in the equation. There is really nobody to blame. There are options to reduce the cost of buying property and I welcome discussions on those policy changes but the fact people want to stay in Sydney, or move to Sydney to take advantage of all that is has to offer is what is driving demand.
And quite frankly don’t blame anyone for wanting to live in Sydney. It’s a great place to live.