"Chinatown"-Official media of Chinese Australians
Real estate tycoon John McGrath said that the boom in the Sydney housing market is not an immediate bubble, and he urged both buyers and sellers not to believe that prices will fall soon.
"The housing boom will definitely end at a certain point. This does not mean that housing price growth will also end."
As the founder of McGrath Real Estate Agents, Mr. McGrath explained that Sydney has experienced an explosive growth in house prices before, but when the boom ended, house prices did not collapse.
One of the major reasons is the insufficient supply of housing in Sydney.
"The price is determined by supply and demand."
"Sydney's housing supply is greatly inadequate, the construction of new houses cannot keep up with the needs of residents, and Sydney's population growth is fierce, coupled with the continuous influx of interest from overseas buyers, this has caused the supply of Sydney's housing to exceed supply. ."
Trends indicate that by 2031, the population of Sydney is expected to reach 610 million, which requires the construction of 54,000 new houses each year, but only 47,000 are expected to be built each year in the next four years.
Mr. McGrath said that this will ensure that house prices will continue to rise in the next few years, but it is certainly not as fierce as the rise in the past three years. The median house price in the past three years has soared by more than 35%.
"The housing market will reach a natural peak at a certain point-house prices become high and buyers start to lose interest. But this will not happen yet."
"The current Sydney real estate market review mechanism is very rigorous, and there is still a lot of room for improvement. Although it is a bit unusual for the housing boom to last for so long, it does not mean that the housing market is about to collapse."
News compiled from "The Herald Sun"
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