What will stop the BOOM in Sydney and Melbourne

seems a bit early for that.. least there are still sharks then the sharks swim away, and the water is looking rather empty..

 

Booms dont last forever.....oops said it again

I certainly would not be keen on developing in this market.... stock increasing

 

That is cause your in this thread, in others, Syd West never stops giving

As per quite often, the govt does things at wrong times, APRA came along and has dropped a bomb at the tail end of the growth, it would have naturally declined anyway, but they threw the anchors out....

Luckily interest rates have not started moving quickly and sharply as yet.

But something has to give or people may sit on places instead of selling, because the demand has dropped significantly after APRA in all places I watched in Sydney, I would hazard a guess same for much of Melbs.

 

I remembered 3 years ago when most of the apartments in the inner city in Sydney were up for auction and there were only few and far between given the large number of existing dwellings. Now we have hundreds within each suburb and almost none are for auction except the most spectacular ones. there most have been 4x more now comparing to then when I was looking. I think the most desperate sellers will eventually drag the price south significantly if the stock level continues to build up.

 

I believe many investors warning this would happen

 

Remember... go for the boutique blocks.... you won't find multiple similar properties being sold in these blocks with the prices being pushed down based on the most desperate seller.... Unless there is a systemic problem with the block.

My one near the city has a decent land content, its only a 3 level high building with 38 apartments. They rarely come on the market. Since I bought only 2 other apartments have come on the market from the building and that's in 3.5 years.

 

It would be better, but it will still be affected as buyers and renters will have more options. I think buyers, especially the OO will look for comfort, view, facility and potential rental income. So if the newer large complex apartments is better in those aspects, it will be hard to justify buying the boutique apartment for more if they are next to each other. Places like Surry hills and Redfern will certainly hold it's value better with less new developments and lack of available land, but will certainly be affected by the glut in Waterloo, Zetland and Mascot.

 

not as much time to post nowadays
Back to booms then - I guess all the smart investors have left and nothing stacks up

 

I think this is an excellent read.

Pretty much nailed what is happening in Melb market.

The Market has certainly changed direction

 

Waterloo, Zetland and Mascot... i'm thinking everything is more or less the same.
Everything is mostly of the same era.

Have too many been built, supressing prices and rents? Maybe.

 

About time the price boom stopped! I've got way too much equity now, I'm ready for the cash flow boom to follow as rents skyrocket!!

 

"I've got way too much equity now" - said no one ever

 

I'm waiting too...but when?

Everytime I read the news, its about the rental market easing (as well as the odd whinge about rents being too high)

 

Not all the news...

https://propertyupdate.com.au/cashf...10e1ad636c60ebf49f790c0004db3238cadf9d26d52da

Cheers,
Michael

 

Yeah I read that too. Stops short of predicting when though....or the guesstimated quantum - 5, 10, 15, 20%???