What will happen to Sydney apartment prices in 2022?

Over the last four decades, the Sydney real estate market has been performing well. However, after a long period of high prices, Sydney dwelling saw its first property price fall in April 2022. This falling price trend led to a few months of lower property rates. This dip in prices was reportedly at an advanced rate/ 

In current times, the median price in Sydney is around $1,410,128 for houses compared to $830,534 for an apartment. This considerable difference in standard and apartment prices, combined with interest rates rise, leads to increased demand for apartments. With the backing of expert home buying assistance from Quarter Acre, adding a new apartment to your portfolio could get further affordability preferences. However, before entering the Sydney apartment market, it is important to gain information about recent events that occurred in the real estate market.

Things to note about the Sydney property market

The Sydney real estate market has always offered many property investment opportunities. The players gained from the change, whether property prices were rising or falling. While low apartment prices attract first-time home buyers, the high property prices improve the investment portfolio of real estate investors. 

In 2021-22 the main reason for Australia’s property smash had been attributed to record-low interest rates because of a cut in the cash rate to 0.1 percent by the Reserve Bank of Australia (RBA) in the fears that COVID- 19 would engrave an unrecoverable pathway through the economy. Now the opposite trend has followed. With soaring inflation, the central bank raised rates in June 2022, earlier than anticipated by various homebuyers who rushed into the property market during the pandemic’s peak. 

Thus, while looking for property to invest in, it is vital for both investors and home buyers to get home buying assistance from the best real estate consulting firms to gain knowledge about the ongoing trends in the property market.

Property price in Sydney 

The property rate in Sydney has reportedly fallen by around 2.5- 3 percent in recent times. An anticipated decline of about 9 percent in the coming 12 months could offer an indeed better occasion to invest. And at the same time, the high rents are increasing the profits of renters. 

While fixed rates have formerly risen sprucely, the steep increases in the cash rate will flow through to variable mortgage rates, lifting minimal disbursements significantly and reducing borrowing power. In addition, macroprudential policy tightening, solid force, and constrained affordability will also be headwinds for house prices. 

Movements in Sydney real estate market

The data from deals of apartments and townhouses shows that the median price of a Sydney property was around $994,000. The clearance rate, which measures the proportion of deals performing in a trade, was approximately 55 percent during May, while in 2021, the rate was 80- 90 percent. 

The central banks in advanced economies had indicated that they were seeking to return policy rates to a neutral setting snappily and may increase policy rates later. And the same move by the Reserve Bank of Australia (RBA) following other countries indicates future hikes in interest rates.

Housing prices in Australia could also be more sensitive to rising interest rates than assumed, which would likely lower household wealth and consumption.

What lies ahead for the Sydney property market ahead?

The analysts of IBIS World, a research firm, predicted that Australian property prices would fall by 5.2 percent in 2022-23 for some suburbs of Sydney to as much as 9.2 percent. The expected fall comes after a price surge of 18.1 percent in 2021-22, the largest periodic increase in Australian history.

The apartment price fluctuations result from many factors, including effects of the covid-19 pandemic, changes in monetary policy, and low confidence among property buyers and investors because of the Russia- Ukraine conflict.

Yet, an explosion of demand and an implicit deficiency of units for trade will occur as soon as students and emigrants return after the opening of international borders. It could make apartments precious, impacting the plans of property buyers. 

Conclusion 

There has never been a better chance to invest in an apartment, with property prices hitting gemstone bottom. The government schemes like First Home Owner Grant (FHOG) will provide great home buying assistance to first home buyers on the purchase of newly constructed dwellings.

Now is the time to take full advantage of current trends in the apartment market and make a property investment decision. Consulting with a professional at Quarter Acre will help you find the best out of all the property investment opportunities available in and around Sydney.

Time waits for no one; enter the adventurous property market of Sydney now.