The head of a major real estate franchise believes concerns about property markets in Australia are somewhat overblown.
Angus Raine, executive chairman of Raine & Horne, said the idea of markets such as Sydney being in trouble is far from the truth.
“Real estate markets in Sydney are returning to a more normal market where we might have two or three committed bidders at auctions rather than the situation a few months back where the fear of missing out saw more like six to eight groups jostling for the prize,” Raine said.
“We often forget that each vendor only needs to attract one buyer for a property to transact and there are still plenty of committed buyers in the market for quality, well-located Sydney real estate – it's just that they feel they have more time to make a decision,” he said.
Raine also said there are plenty of signs pointing towards Sydney and other markets continuing to perform strongly in the future.
“Take the Australian Population Research Institute findings that were released yesterday, indicating that Sydney will need an extra 309,000 homes in six years' time,” he said.
“Lack of stock will continue to underpin long-term values in Sydney, and Melbourne too for that matter, as both cities are the engine rooms of the Australian economy and also great places to live.”
Raine also said Australian real estate outside of Sydney and Melbourne is performing well.,
“We are also seeing signs that property markets in Northern Australia and South East Queensland are starting to attract more southern state investor capital,” he said.
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