Is there a property bubble in Sydney, and will it burst soon?

He said: “I get asked the same question—it's something that I have to talk about on a regular basis … [and] from my perspective, I don't think there is a bubble in Sydney.”

The property professional believes that the property market in one of the biggest capital cities in Australia is beginning to “correct itself” by continuously slowing down. Had it been consistent in its upward trajectory, property investors would have been in a bigger trouble.

Like in all areas, the movements of the Sydney property market is also dependent on a number of factors, some of which are often unpredictable. However, despite the changes in the market as well as the recent changes in policies, there remains a strong demand for dwellings in the capital city.

Doug explained: “It is naturally plateauing, so I don't believe that there is going to be a bubble that bursts.”

“From what we do know, from what we do understand, I think the markets corrected itself.

“We've still got record-low interest rates, we've still got ... an undersupply, we've still got a burgeoning population, so … I don't think there is a bubble,” he added.

In contrast, Perth might just be in a “perfect bubble” due to the fact that its property market is essentially dependent on a single factor—natural resources. The growth seen by the property market in the city was at an exponential rate, so as soon as the mining boom was over, there were consequences faced by investors and property professionals alike.

Doug said: “That was kind of a perfect bubble, but if you look at Sydney, it's a far more balanced and far more stable market.”

“I hope these aren't famous last words, but … I can't see a bubble bursting anytime soon … Let's hope I'm right,” he concluded.

Tune in to Doug Driscoll’s episode on The Smart Property Investment Show to find out how the real estate market has been impacted because of the property markets, what you should be looking for when thinking of investing in a certain area, and how infrastructure is impacting the property game.