In the past four decades, the Sydney real estate market has been one of the strongest and most stable markets.
During the downturn of the COVID period, the value of Sydney houses fell by only -2.9% from peak to trough. And in mid-October, the Sydney housing market turned precarious, encouraged by the confidence of buyers and sellers, and started to rise.
As of the end of 2020, Corelogic reported that its Sydney house price index increased by +3.73% over the same period last year, of which houses +4.95% and apartments +0.98%.
The leasing market is not very resilient, and most of the downward pressure comes from apartments.
According to Riskwise’s Doron Peleg, Sydney is expected to achieve 8%-12% house price growth in 2021. He believed: “In the past three months, the pattern of the New South Wales housing market has rapidly changed from a buyer’s market to a seller’s market.”
Only three months ago, Sydney homebuyers were in a solid position to take advantage of current market conditions. However, this is no longer the case, and buyer sentiment and clearance rates have risen sharply.
Regarding COVID-19, several vaccinations may be launched in 2021, which provides confidence in finally finding a sustainable solution. Therefore, this will greatly promote economic growth.
Due to a series of events that have changed the real estate market, the New South Wales market is likely to experience strong price increases in 2021, ranging from 8% to 12%.
As early as September, before the real estate market in Sydney really began to take off, Domain reported that due to the soaring prices of the buyer competition, most areas of Sydney had recorded amazing double-digit price growth.
According to Domain senior research analyst Dr. Nicola Powell, inadequate supply, low interest rates, and unaffected buyers who want to expand have driven prices up.
Sydney real estate buyers are attracted by the market due to low interest rates, government subsidies and other incentives. Although house prices are stable, rents in some parts of Sydney have fallen in the past year.
The biggest decline in rental value was in the CBD and South Sydney, where rental values fell 4.1% from the previous quarter.
Currently, with the end of the economic recession, there has been a rapid economic recovery. Many new jobs have been created, and more than 70% of the jobs lost at the beginning of the pandemic have been restored.
In general, the Sydney real estate market has started to rise from its lowest point, but certain sectors of the Sydney real estate market-such as the CBD high-rise apartment market may still be weak before the blockade is lifted.
Having said that, according to Corelogic data, the median house price in Sydney is:
So, in the new year, how will Sydney’s housing market develop? These are some of the latest forecasts issued by banks and professional institutions at the end of last year:
If you are interested in Realty Investment, please leave your name and email, we will send out all the best offers and projects straight to your inbox.