Sydney Property Market Prices and Outlook
Home prices in Sydney continue to trend upward despite a moderation of sales and available properties for sale in the city.
As you’ll see in this report, each data source reports different average home prices, however each predicted a strong upward trend even though there are fears about the economy.
This trend is typical of property markets across Australia as the pandemic continues to affect living choices and housing availability.
Sydney differs from other markets of recent due to high home and rent prices, migration, and Covid 19 shutdowns. Home prices in Sydney have been hot, and the forecast is for big increases over the next 12 months. Same goes for Melbourne’s property market, although Melbourne’s prices are slightly more moderate. See below.
This Covid 19 infection rate chart serves to show this time is different. Only 30% of Australians have both vaccine shots.
Australian Home Value Index Up Sharply, Including Sydney and NSW.
Besides rising home prices for new buyers, previous buyers are very concerned about mortgage rates and whether they can afford future payments.
Sentiment may be falling about the Australian economy with rising rates, lockdowns, and high priced real estate. Some feel a recession may be imminent. That sentiment may help moderate Sydney home prices in 2022.
Sydney and the New South Wales district is beautiful, a destination of dreams for global travelers wishing to sample the lifestyle and unique economy of Southeast Australia. Unfortunately for buyers, this region is becoming the most expensive. Growth in prices in Sydney is immense. New stats show the NSW region is home to 88% of the highest growing suburbs in the country.
Australian Property Prices by City
As this chart shows, dwelling values have increased significantly in Sydney, Melbourne, Brisbane, Hobart, and Darwin. Home prices increased most in Sydney, Brisbane and Hobart. Apartments in Sydney and Melbourne have lagged given the fears of Covid and desires to move to the suburbs or other less densely populated areas.
Home Price Growth in Sydney
Dwelling Values Sydney, Melbourne, Brisbane September 2021
The Ebb and Flow of Migration
Sydney suffered a net loss of residents during the pandemic and is only slightly recovering from that trend. Many of the people leaving are taking remote work and these jobs are well paying. So the migratory trend may be having an additional effect on property prices and demand.
Property prices in Sydney’s north shore, northern beaches and the eastern suburbs were in most demand from buyers in the New South Wales region.
House prices in Sydney hit a median price of $1,293,500 last month and they’re forecast to jump a further $76,619 in Sydney by July 2022. Although they’ve been on a tear, in the last month Sydney dwelling prices are the lowest of all major cities. This would likely be an effect of the Covid 19 outbreak in the city.
The consequence for renters in Sydney is pronounced as the economy lags, and Covid infections rage.
Professor Hal Pawson, Associate Director at UNSW’s City Futures Research Centre, said “The real concern in all this is the situation of the many renters in regional Australia who were already in a ‘housing affordability stress’ situation before the pandemic … (and) are going to be placed at greater risk as a result of increased pressure on the local housing market. — from news.com.au report.
It’s Not Just Sydney where Prices are Sliding
Australia’s housing market is highly fragmented with some markets showing their own unique demand and supply dynamics however will they be next?
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Optimizing Operations to Survive
Australian property managers will be focusing streamlining operations and attracting and retaining tenants. Now more than ever, Australian property managers in Sydney, Perth and Melbourne are having their businesses tested to the extreme.
Rent Prices in Sydney Rising Again
The Sydney Rental market has recovered from last year’s devastating losses however this new surge could result in lower apartment rents.
As you can see, Melbourne rents aren’t rising as renters may be looking to cheaper markets in Darwin, Canberra, and Adelaide instead.
The time for a landlord to rent an apartment in Sydney has risen slightly. All the more reason for landlords to improve their rental ad writing skills and strategizing to attract the best tenants. The fear of Covid, loss of employment, rising cost of living and work from home are bringing special pressure to bear on renters.
Landlords in Sydney see time to rent slowing from the previous month but time to lease is much better than last year. With renters moving out to cheaper cities, we’re seeing rent times quicken in Hobart, Darwin and Canberra. There are likely differences between urban Sydney and the suburbs and outlying towns.
Comparing to USA Rent Prices
The price of apartment rentals in Australia is low compared to US apartment prices, but in terms of percentage declines will be just as painful to property investors and property managers. While many regions have seen their rents rise strongly, New South Wales rents are flat, as well as being the priciest in the country.
Complicating the picture may be the movement of those selling their homes to rent an apartment. Good for you as a property manager, however you may still need to offer incentives, free rent, and other inducements.
Predictions for Australia’s Diverse Housing Markets in 2019
What are the predictions for the Australian housing market in 2022? Will the economy see a hard landing, and collapse of the housing sector? The OECD believes an Australian housing downturn is possible and are warning of a dire situation for Australian banks. Trade wars between the EU, USA and China could send bigger ripples to Australia.
See also: Australian Property Market 2022 | Australian Property Management | Australian Property Management Software | Melbourne Property Market | US Housing Market | Property Software | Sydney Property Market | Australian Property Management Companies | Apartment Rental | US Property Market | Property Management | Australia Property Management | Software for Landlords | Homes For Rent | Apartment for Rent | Toronto Housing Market | Canada Housing Market | Toronto Property Management Companies | Rental Property Advertising | Write Property Lease | Property Management