Why Sydney and largely Melbourne dominate.(Good article) Even though alot dont agree with it.

Why Sydney and to large extent Melbourne dominate.(Good article) Even though alot dont agree with it. I think alot ios missed how much of an Engine room of Australia economy Sydney actually is.
I know alot even on PC keep not seeing how strong of Cities Melbourne and Sydney are.
To me they are becoming the New York or specifically the Manhattans of Australia.

Interesting is also:
GDP per capita shrank 0.6 per cent in Brisbane and 4.7 per cent in Perth.

Also:
Mr Rawnsley said economic activity was gravitating to Sydney and Melbourne, even though Melbourne's living standards were slipping.
"It's getting economic refugees from Perth and Brisbane, whose living standards are slipping faster," he said. "Melbourne is more affordable than Sydney. If you want a big city with a vibrant economy but you don't want to pay Sydney prices, you go to Melbourne."

In case you missed it here is the article.:

Sydney powers the nation, accounting for almost half of Australia's economic growth

 

Here is the full SGS report which i believe SMH relied on for its information .

https://www.sgsep.com.au/publications/economic-performance-australias-cities-and-regions

 

On the other hand, some people have memories longer than a couple years. Anyway it doesnt affect the strategy of investing cyclically.

 

that is correct that is what most successful investors do.

 

@Illusivedreams

not surprised in melbourne seen suburbs moving from 6 figures to 7 figures

Seen record prices suburbs breaking into 2 million+ (ppl bidding in the heavy rain)

Outer suburbs was 300Kish now nearly 500K

and this is in the last 2 weeks.

 

Great post.

In property I have learned that you will be successful if you are intelligent enough to consider the facts and use your common-sense to make a decision rather than listening to someone elses opinion.

You would have to ask yourself, if their opinion is so valuable why do they have to repeat it so many times any way

 

300kish to 500k in two weeks???

 

.... just to think the Engine Room of Australian was once Perth... between 2001-2007 (mining).... .just shows things can change.... glory days can go out the window.... make hay while the sun shine.

 

high 300Kish ( as in 380- 390k) to nearly 500K - yes.

 

Can you give me insight into these suburbs? pm if you prefer

 

Good article. IMO its pretty noticeable if you live here. I've always felt Sydney was slow to change...now it feels like they're playing catch up for 1-2 decades of doing little and going gung-ho with as many projects as possible.

Anecdotally it feels like a booming city IMO.

Jobs are easy to get, there's lots of mobility, everywhere you look there's construction activity. I personally think its a matter of time before it translates into wage growth, and that may eventually force the RBA's hand, as inflation will follow soon enough thereafter. Activity is moving away from housing construction & housing activity to other sectors - public sector investment a big one.

 

We have already had some wage growth that i can see over the past few years.

Generally when unemployment bottoms out is when wage growth will kick in.

However our current national economy is very dependent on building and general investment activity. It will be important to keep that up or we are going to have backward trend on both employment and wages.