Sydney Housing Market – What to Expect?

Buying property in Sydney with real estate prices being at historic highs, you might be considering if this is the right moment to buy or sell your investment property.

It might be difficult to decide because keeping a property that isn’t doing well could end up costing you money in the long term. In addition, if you sell, you’ll be able to maximize your return on investment while avoiding an impending downturn.

Any real estate market is difficult to read; just recall the doomsayers who forecast that the housing market would decline by at least 30% in 2020 in the early stages of the pandemic. Data from property analysts, however, show that the opposite is actually the case.

Contrarily, data from real estate experts CoreLogic show that Australian housing values have increased +10.6 percent Year to Date (YTD). This includes regional markets, which are up +15.2% YTD and have outperformed capital cities.

Are you interested in knowing what the Sydney real estate market will look like in 2022?

Sydney ended up being the second-best-performing Australian home market in 2021, with many areas seeing house prices rise by more than 24 percent. From the past 40 years, the Sydney real estate market has been among the best-performing and most reliable. As affordability issues began to bite in the final months of 2021, price growth in our two major home markets, Sydney and Melbourne started to halt. Property values rose practically everywhere in Sydney last year, which is extremely unusual. The Sydney property market has stagnated so far this year, with little overall growth in the first quarter of the year, but transactions are taking place.

The Sydney real estate market will segment in the future. Just as the usual real estate market

 in other places. The property values will depend on local affordability, and supply-chain demand, among other factors.

It is predicted that overall home values would be 6-7% higher and unit values will be 5% higher by the end of 2022 than they were at the start of the year.

Property values in Sydney:

·      Declined by -0.3% over the previous week,

·      -1.6% over the previous 28 days, 

·      5.5% over the previous year.

Is now a good time to invest in Sydney’s real estate market?

Sydney has been leading the charge as property values in Australia have grown at rates not seen in more than a decade over the past year. The media has conveyed conflicting messages on what lies ahead. This might be a distressing time for property investment opportunities, but taking a well-thought decision will certainly help.

Average capital growth in Sydney

Sydney had an average home price of $188,000 in 1993. Sydney’s dwelling price increase, however, has been quite uneven. While some suburbs are hardly moving forward, others are doing far better. Numerous local markets, each with its own drivers and supply/demand challenges, make up Sydney. These averages have been significantly surpassed by Sydney’s wealthier Inner Eastern, Lower North Shore, and Inner Western districts.

Homes: Compared to five years ago, just 5% of Sydney areas’ median property price was less than $500,000 as of September 2019.

In September 2019, 47 percent of suburbs had a median property price of $1 million or more, up from 34 percent five years prior.

Units: In September 2019, 29 percent of Sydney suburbs reported a median unit valuation of $500,000 or less, down from 49 percent in 2013.

In September 2019, 14.4 percent of suburbs had a median value of $1 million or more, up from 2.9 percent five years prior.

The rich are becoming richer, and as a result, they can afford to pay more for their properties and are willing to do so.

The property market in Sydney

Sydney has adopted the apartment-living model more than any other Australian capital. Family-friendly apartments are viewed as an affordable substitute for homeowners in Sydney’s eastern suburbs and Northern Beaches. These places are likely to continue to rise in their value.

Conclusion

For many people, owning a house is getting difficult due to the steep  rise in property prices. Many give up on their dream of buying property in Sydney not because of high prices but due to the difficulty they face in saving. 

Sydney has seen an 11% fall in prices this year. Next year, another 7% is expected. Quarter Acre is a one-stop solution for you. We help you to know recent trends in the Sydney property market so you can grab some of the good property investment opportunities. 

Contact Quatre Acre for further information and advice