Sydney 'the star of Australia's property market'

Home loans customers may want to consider investing in an abode in Sydney as the city was described by one expert as one of the "bright stars on the horizon" of the country's property market.

Residex forecaster John Edwards revealed that he believes the market in Melbourne is the one that is the cause for the most concern.

He explained that buying activity is often directly related to the confidence levels in the country and that when people are concerned about their jobs they postpone looking at new acquisitions.

Despite this, Mr Edwards said: "Our star is Sydney, which is the market that generally points to the future performance of other markets across Australia."

He added that he expects the Reserve Bank of Australia to cut rates in September, although he suggested that it could be sooner if the carbon tax is not introduced.

Last month, Sydney Property Monitors research revealed that in the April quarter there was a 1.1 per cent increase in the cost of homes in the city.

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