Property Market Update

Sydney Houses
The Sydney house market, after a lengthy period of zero or slightly negative growth, finally seems to be showing signs of moving again.  The market is certainly only in the early days of its recovery, but there are enough positive signs to indicate that we have passed the bottom of the slow period, and are moving into a period of renewed market activity.

Number of Sales
Throughout 2007, we have noticed a steady increase in the number of houses sold, with each quarter being higher than the last.  If we count not just the number of sales recorded by the government, but other more recent sales provided by real estate agents, the number of sales in December 2006 was 10,101, the highest number of sales since the end of 2003 when the market correction began.  Certainly, we are not back to boom levels but there is a definite improving trend in this area of the market.

Selected coastal cities in Australia will reinvent themselves over coming decades as strong population growth and new households trigger a surge in the demand for new dwellings, according to a recent KPMG study on Australian housing.

KPMG carried out the landmark study, Australia on the Move, for the Property Council of Australia to assess future demand for housing across 41 cities until 2031.

The author of the study, KPMG Partner Bernard Salt, said it provides crucial insights into what the future could hold for some key seachange cities.

"In particular, the seachange cities of Mandurah, Hervey Bay, Sunshine Coast, Gold Coast and Cairns will more than double their housing stock over the 30 years to 2031; the housing stock in the industrial city of Gladstone will also double as a consequence of Queensland's strong population growth.