Sydney home prices now falling $120,000 a year

Discussion in 'Property Market Economics' started by Pete Arendt, 24th Jan, 2019.

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  1. 2FAST4U

    2FAST4U Well-Known Member

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    Sydney residents earn more but I agree that Sydney housing prices are overvalued. I'm expecting another 10%+ fall.
     
    Joseph Skewes likes this.
  2. Joseph Skewes

    Joseph Skewes Well-Known Member

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    If 2.5x was fair value then it is surprising Sydney didn't get well above it in it's recent speculative mania ;)

    Based on historical ratios you might reasonable assume that 2x was fair value (1.5x undervalued Sydney, 2.5x overvalued), but it's possible that the internationalisation of Sydney / Melbourne results in a higher base. It's also possible that it swings the other way as the median home in Sydney is becoming smaller and smaller (so you get a lot less for the median in Sydney vs Adelaide).