The price of property in Sydney and its apparent refusal to show any sort of sign of slowing down has been a concern for some time. Many have worried that the speed of increases is not only pricing people out of the market, but could also lead to a price correction at some point.
However, the latest reports released this week by CoreLogic RP Data has given an indication that the Sydney market may be starting to cool off somewhat at last and suggest that the sector in the city may well be maturing.
The statistics show that for the month of September, Sydney prices rose by just 0.1 per cent compared to a 2.4 per cent rise in Melbourne. To see Sydney prices rising slower than in any given city is a surprise, and potentially does show that the market is maturing.
Tim Lawless, head of research at CoreLogic RP Data said it's all down to the fact supply is now in a much healthier place in Sydney, meaning that there is not the red hot level of competition once seen in the market, which often pushes prices upwards.
"Vendors are still enjoying strong selling conditions, but it looks like buyers are slowly regaining some leverage in what has been a very hot market. Meanwhile, while half of Australia’s capital cities have seen values rise over the past quarter and year, the other half did not fare as well," he said.
Across the capital cities in Australia it has been a bit of a slower month as a whole in terms of rising prices. Apart from Melbourne's 2.4 per cent price increase, September saw very little in the way of growth. As a whole, prices were 0.4 per cent higher month on month across all capital cities, while the quarterly average now sits at four per cent as of the end of September.