Sydney property is unquestionably expensive. Whether it is overvalued is a far more vexed question. Recently Reserve Bank researchers claimed the Sydney property market is 30 per cent undervalued, while economists from Barclays claimed it is actually 12 per cent overvalued. Many others have warned of Armageddon.
Property is in fact worth exactly as much as others are willing to pay for it. Right now there are many factors making Sydney property attractive to buyers. With interest rates low and the share market shaky, Sydney property remains one of the best performing investments. Sydney property is also seen as a safe haven for Chinese buyers, who are currently snapping a sizeable proportion of the new properties being built. The rapid growth rate of Sydney’s population is also worth taking note of. In the long term we can be sure of continually increasing demand, with properties closest to the CBD likely to experience the strongest growth.