APM: Sydney property firing

Prices on to all-time highs for both houses and units in Sydney with auction clearance rates moving back into 'very strong' territory.

Meanwhile, RP Data looks set to report an astonishing 2.7% price growth in Sydney for just the past month. Not sure what's going on there.

The contrast with the plummeting gold price chart (which has collapsed from US$1,900/oz to below US$1,200/oz this week in spite of its supposedly 'strong fundamentals) is now very stark.

Interesting that an asset class which was apparently 'not in a bubble' according to some commentators in 2012 can lose 40% of its value, while Australian property, has continued to rise broadly in line with household incomes for the past decade.

This is precisely the problem with gold for me - it pays no yield, so what, really, is its fair value? 

Source: APM

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