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Record low interest rates 'coul...

Record low interest rates 'could cause Sydney property boom'

Record low interest rates could cause a property boom in the inner-city areas of Sydney.

Record low interest rates across Australia could cause a property boom in many inner city areas, such as Sydney.

This could spur lenders to fight for a greater slice of the mortgage market, as consumers look to buy up prime property.

John McGrath of McGrath Real Estate said that the Sydney property market was "red hot".

He explained: "I haven't seen it this hot since the last real estate boom," and added "a bit of a growth spurt is a natural and welcome and healthy thing, it's bringing confidence in, but one would hope and expect that will settle into a more sustainable five to eight per cent growth over a longer period".

These comments come after the Australian Reserve Bank cut rates to record low levels, prompting investor demand to soar around the country, especially in metropolitan areas, as people look to expand property portfolios.

Posted by Steve Douglas

 

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