Sydney Real Estate Trends 2022
The challenges brought in by the Covid-19 pandemic and subsequent lockdowns and inflation have affected citizens and the economy alike. The real estate sector was no different as it faced its own challenges. However, the best real estate consulting firms suggest that the upcoming months could be less stressful for property markets and move in favor of buyers.
More property investment opportunities are likely to appear as prices are lowering ahead of what could be an outburst of demand which could lead to a shortage of units.
Predictions For Sydney’s Property Market
The Sydney real estate market has been somewhat able to mitigate the problems during the pandemic time. It was pretty resilient than others, witnessing the world’s fastest-growing property prices in 2021.
But the recent trends highlight the fast-changing aspects of property investment opportunities. Australia and New Zealand Banking Group (ANZ) earlier predicted an 8 percent rise in prices. But the unexpected rise in rates forced it to slash the forecast by 3 percent in 2022 and a further 8 percent in 2023.
Falling Sydney Property Prices
After a prolonged period of high prices, the Sydney property market saw its first property price decline in April. The trend followed in May, leading to a second consecutive month of falling prices. The dip was reportedly at a higher rate than in any other country.
The data from sales of units, townhouses, and properties shows that the median price of a Sydney property was around $994,000. The clearance rate, which measures the proportion of auctions resulting in a sale, was around 55 percent during the month of May, while in 2021, the rate was 80-90 percent.
Rising Rates Affecting Housing Prices
The Reserve Bank raising interest rates has created issues for the Sydney real estate market, which appears to be bracing for a greater downturn. Banks and financial groups predict that because of the higher cash rates, there will be price drops of around 5-15 percent in the next 12 months.
Sydney Suburbs Rents
The falling vacancy rates, return of overseas migrants, and low construction activities are pushing rents to the higher side. Yet, according to partner site news.com.au, some suburbs of Sydney are recording falling rents due to a rising number of untenanted properties.
According to SQM research, there has been a drop in the vacancy rate from 3.1 percent to 1.6 percent in April. However, the trend varies in various parts of Sydney. Throughout much of the city, the vacancy rates are lowering, and rents are rising, while in some suburbs, vacancy rates are rising, and rents are falling. Thus, the renters aren’t totally out of opportunities.
Time To Enter The Sydney Property Market
Sydney is now showing positive signs of recovery after the slowdown during covid-19. That may be why the best real estate consulting firms describe property investment in the city as an opportunity for wealth creation and a source to provide financial security.
Moreover, while the rental yield has been stable with no major variations, the Sydney housing market is seeing a high level of growth. The time is just perfect for entering the Sydney real estate market as there is a drop in prices. The low prices, however, could boost the demand, eventually leading to higher property value in the coming months.
The reopening of borders post-pandemic could lead to the return of thousands of international students and immigrants, putting landlords in an advantageous position as rental prices are on the rise. The infrastructure development and huge real estate activities around western Sydney in Blacktown, Liverpool, and Penrith are reasons for markets to continue to be strong in the coming 12 months.
Conclusion
With the strong economic growth and employment growth in Australia’s economy, Sydney’s property market is moving forward. It could be the perfect time to enter the market by buying a property for the first time. However, purchasing new property requires a lot of planning and knowledge beforehand. Having information about property type, property prices, mortgage rate, and location is important.
If you are still in a dilemma of choosing the right investment property, use the expertise of the best real estate consulting firms to get the right direction and guidance. You can connect with Quarter Acre to plan your financial budget with sponsored lenders or loans.
