When is the Sydney property market going to crash?


I don’t see Sydney property crashing anytime soon, for the following reasons:
1. Cheap credit – we have the lowest interest rates ever and don’t look like going up in the foreseeable future.
2. Limited supply – investors are over-represented in the market from their usual 30% (Owner Occupiers being the other 70%) means they buy a property but do not have one to sell like an upgrading Owner Occupier would.
3. Volatile share market – conservative investors retreat to the perceived safety of bricks & mortar.
4. Demand still exceeding supply – so prices continue to rise (9.8% in SYD for 2016 since last year’s predictions by many that the boom was over). According to those that know, we are under-building approx. 50,000 residences in NSW per year.
5. Aussies’ dream of owning their own home is still embedded in their culture.
6. Increasing migrant intake (Prime Minister announced this week).
7. Government intervention in the unlikely event that things do start to look bad. Governments have a long history of putting stimulus into the property market when they think it necessary – Stamp Duty relief, First Home Buyer grants etc.
….just to name a few.

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