Rumours are afoot in the city of a huge anonymous tender to swallow up a mass of new floor space, and the word appears to be that the company in question that is tendering is a forward-thinking corporation which specialises in internet search engines.
Generally, it's a better time to be a tenant of existing Sydney office space than an owner right now.
As expected, there are to be far fewer listings during this seasonal lull.
With many lenders dropping mortgage rates independently of the Reserve Bank and some standard variable rates now even available with a '4 handle', it's unsurprising that BIS forecasts another 15% price growth for Sydney units over the next two years.
People can forecast bubbles in the detached housing market until the cows come home - deliberately ignoring the role of cheaper debt finance and changes in household structure - but when it comes to apartments with $400,000 mortgages which fail to attract even $20,000 in annual interest charges, a material correction will not eventuate absent a shock from either normalised interest rates or much higher unemployment.
New South Wales currently has a headline unemployment rate of only 5.5%, or 5.7% seasonally adjusted (click chart):
From APM's weekend auction market wrap: