Login
ISCOVER
Ray White chief executive Dan White has questioned the voracity of claims that Australian – and particularly Sydney housing prices are in a bubble.
When asked by sister publication Real Estate Business about whether Australia is in a bubble and the potential of a price crash, Mr White said: “Australia is a big geography. If you took out Sydney, I don't think you'd be saying that at all in terms of bubbles."
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
He also suggested that as an individual market, Sydney is undergoing a transformation in terms of its status and perception globally, which is changing the fundamentals of how its property market will perform into the future.
“I think what the question really is, [should be]: ‘is Sydney an international city that will continue to get a premium going forward?’ Is it being rated as an international city and being benchmarked against all great international cities?" he said.
“All trends around the world suggest that big international cities are outperforming second, third or fourth cities in their country by a huge margin. Certainly people from overseas come to Sydney and don't find Australian real estate too expensive.”
He suggests that for domestic borrowers, the focus should be on taking a long-term view of property purchases and ensuring that as home buyers, they are able to maintain a healthy cash flow.
“Sydney's had a lot of booms and busts before. I think over the long term Sydney's performed well, and we want to ensure every buyer understands that what we've seen over history is that you can get through booms and busts provided you have the capacity to see things out through the cycles," he said.
[Related: Sydney boom takes market into uncharted territory]
