What Are the Values of Property in Sydney?
What Are the Values of Property in Sydney?
To say the Sydney real estate market is on fire these days would be a mild understatement. Like most of Australia, the Greater Sydney Metro area is staying resilient, even in the face of an ongoing global pandemic. Low inventory, high demand, and record-low interest rates for borrowers form the trifecta driving this hot seller’s market.
Market prices in Sydney are amongst the highest they have been since 2017. Whilst pricing is still below pre-pandemic levels within the capital city, regional prices continue their upward trend. Property owners who are on the fence about whether to sell may wish to fully consider their options whilst they still command some of the best market prices in Sydney.
Market pricing trends by-the-numbers
In early 2020, when COVID-19 first began shutting everything down, real estate experts were uncertain how it would affect the housing market. In-person home tours came to a standstill, whilst appraisals, inspections, and closings were postponed due to safety concerns. Despite facing all these obstacles, the Greater Sydney Metro area real estate market maintained its resiliency, posting some surprising gains throughout 2020.
One of the most surprising trends was the rise in market prices in Sydney. When buyer demand rises, property values soon follow. According to real estate inventory data from CoreLogic, Sydney and its suburbs experienced a 17.5 per cent drop in available inventory over the region’s 5-year average. A strong seller’s market emerged, which does not appear to be changing course anytime soon.
According to CoreLogic’s local market data for February 2021, property prices nationwide are experiencing a 2.1 per cent increase. It is the fastest growth rate for the real estate industry since 2003. The same data points to an estimated 24,000 sales occurring in the Sydney metro area over the last three months. These record-breaking sales represent a 34 per cent higher closing rate than the same period during 2020.
Real estate market resiliency and strong market prices are not unique to Sydney or even Australia. Tight inventory, combined with high demand, have driven upmarket prices across most of the global real estate market.
Apartment market slump
Whilst home values are rising, apartments and other dwellings have taken a nosedive. Within the last year, apartment prices have fallen 0.6 per cent. Houses are outperforming units in every capital city except Melbourne due to weak demand and plentiful supply. To help combat the downward spiral, landlords have lowered apartment rents in Greater Sydney to levels not seen since 2013. As international borders remain closed to international students and professionals as we move through 2021, the trend is expected to continue.
2021 property values forecast
The seller’s market is expected to continue in force through the end of 2021 and possibly well into 2022. Economists are predicting housing price surges of 14 per cent between now and 2023. Real estate professionals are forecasting an increase in listings as we move through 2021, which could cool off the market prices in Sydney. Property owners who are ambivalent about selling may wish to obtain a property valuation and decide whilst the strength of a seller’s market is still with them.
