For once in a long time Sydney property markets score a win over rival Melbourne

Posted by Anabel

February 2, 2009

It has taken quite a while, but the latest stats from Australian real estate movements show that the Sydney property markets finally score a win over rival Melbourne:

: Sydney property scrores a rare win

: Melbourne CBD

The Victorian capital fared the worst property decrease downunder, its house prices sinking an average of 1.7% over the last quarter in 2008. Sydney prices fell only 0.3% in this period, still nothing really to celebrate for home owners in the big city. The two big rivals that both benefited from the boom up to mid-2007 are now facing substantially higher losses in the property sector than the smaller cities in Australia such as Perth, Adelaide or Darwin.

In Sydney the losses of jobs in the financial sector have mainly put more pressure on the property sector. The more balanced economy of Melbourne is expected to cope better in these circumstances; the latest decrease though pays tribute to an exceptional good year in 2007 with its 21% increase in average increase in real estate prices.

And tomorrow: all eyes are on the RBA with the market expecting a cut of a further 100 basis points. Let’s see whether the then 3.25% cash rate will stimulate Australia’s economy.

Anabel

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