Property flipping frenzy in Sydney spurs warnings of overheating

Sydney

LANA Taylor quit a job at Unilever plc to buy, renovate and sell homes in Sydney, where prices have increased in 13 of the past 15 years.

Ms Taylor, a marketing manager at the consumer goods company until October 2013, and two friends started Three Birds Renovations in July last year. Since then, they have bought and sold three homes in Sydney's northwestern suburbs and made a gross profit of about A$600,000 (S$613,240). They are working on the fourth, which will be ready for sale by Christmas.

"We aim to flip the property in six weeks," said Ms Taylor, 37. "We are kind of living the dream, where three friends, three mums are buying and renovating houses for a living."

Sydney home prices soared 44 per cent in the three years ended September, enticing speculators who've been partly inspired by home renovation shows on how to spruce up and sell homes for quick profits. The frenzy surrounding Sydney's property boom, reminiscent of the exuberance in US real estate before the 2008 financial crisis, has prompted regulators and Goldman Sachs Group Inc to warn the market is overheated, while Bank of America Merrill Lynch on Monday said it expe…