Sydney’s record property price growth finally seems to be at end, so does this mean that it’s time for that growth to move to other cities and regions across the country?
This is what has happened in past incidences when Sydney has seen prices falter; buyers have turned their attention elsewhere where they can find more affordable options and better chances of capital growth.
At present Sydney is home to the nation’s most expensive housing market. According to CoreLogic figures, the median dwelling value in June 2018 for the harbour city was $870,554. This is a 21 per cent premium above even Melbourne, which is the second most expensive city in Australia.
Of course if you choose to live in Sydney over Mudgee you would be paying a much larger premium. CoreLogic has calculated that the premium for Sydney dwellings compared to those in the Central West region is currently a whopping 176 per cent.
There are a number of reasons why Sydney has seen such radical growth in the last few years, including low interest rates, strong economic conditions, increased investment and population growth, so the gap between Sydney prices and the rest of the country isn’t surprising.
However, conditions have changed and with housing affordability a huge issue in it wouldn’t be surprising to see many Sydneysiders migrate elsewhere.
Some will move on to other cities like Brisbane or Hobart and some will look to regional centres like Mudgee where they can afford a property and live the lifestyle they want.
Mudgee is already home to a lot of Sydneysiders and interstate migrants who have favoured affordability and there is little doubt that the region’s lure will continue as the heat starts to come out of the Sydney property market.