What I've been suggesting since the very first days of writing this blog - Sydney, as Australia's major capital city, is to be overwhelmed with speculative property investment capital, firing prices in that middle bracket off to all-time highs.
This has already happened, but check out the investor capital in the pipeline.
There is something of a lag between investor finance data and price gains, so expect Sydney dwelling prices to run higher still over the coming months.
Reports Dr. Andrew Wilson at SMH:
"Latest Australian Bureau of Statistics data has confirmed the flight to bricks and mortar by Australian investors that has continued to gather pace over the year so far.
Driven by the lowest interest rates in decades - for both depositors and borrowers - and a volatile and still underperforming stockmarket, investors are tapping into the housing market in record numbers.
They’re also motivated by the sustained revival in house prices in most capital cities.
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Sydney is the epicentre for investor activity, with almost $4 billion in investor finance approved in NSW over May.
This was the highest monthly total ever recorded for residential inventor finance for any state.
The figure also represents 40 per cent of all investor finance loans approved in Australia over May.
Residential investor activity in NSW has risen by a stunning 35 per cent over the first five months of this year compared to the same period a year ago.
Almost 52 per cent of all housing finance in the state is being approved to investors – the highest proportion of any state with the next best Victoria at 44 per cent
Western Australia also recorded its best monthly result for investor loans since the resources boom of 2007, with investor activity now up by an impressive 27 per cent so far this year compared to the first five months last year.
In fact all states are tracking higher for residential investment this year compared to last. Victoria up 11.3 per cent, Queensland is up 4.3 per cent, South Australia is 8.3 per cent higher, Tasmania is up 1.5 per cent, ACT is up 11.1 per and the Northern Territory is a hefty 28.5 per cent higher."
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