Sydney's inevitable house price decline

A frenzy of investor activity in Sydney has seen prices buck the national trend of modest growth. But such growth without first home buyer activity is unsustainable, and will result in a slowdown.

The recent pick-up in Sydney house prices is a product of investor speculation, though investors continue to support activity in a number of other states. Investor activity is at an unprecedented level in Sydney. When this inevitably normalises, Sydney house prices will decline.


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