Sydney house prices surge, now back above $1 million: Domain Group

But blue chip in Syd did get hammered in 2003/2004.

Curious what actually caused the crash in Sydney in 2003/2004? I was not paying too much attention at this time, as I was buying in the Perth boom cycle during this period.

Another question do investors honestly believe that Sydney will never be effected by boom/bust cycles when history proves otherwise.

There has not been one market in Australia that has dodged a bullet, all markets eventually correct, how low it will go is what we don't know.

MTR

 

Hello!
I wrote that other post ages ago. I actually don't know what caused the slowdown in 2004, I was there but don't know the reason for it. People could still buy property 2004 and onwards, and I don't think it was borrowing capacity related.

As to what will be hammered - I think @highlighter has it right. Worst affected will be properties far out, on the fringes, particularly new estates with small land, and that doesn't have easy and convenient transport. People won't want to buy those. And the owners of these properties tend to have the least equity.

I think the ultra premium market (>$4 mill?) could suffer reasonably large fall backs too from peak - fewer buyers. I suppose some ultra premium properties are worth it and will hold current values, if a right buyer is found.

I think the middle 70% would be most stable. It's the areas that upsizers and downsizers can move into.

 

I agree, time to leave sydney and focus on Brisbane

 

Yes, I believe the higher end will get hammered too.
@Ace in the Hole picked up his primary residence, similar scenario previous owners selling $1.5M below their purchase price, they must have purchased at peak....ouch

 

And I was referring to Perth.