Property Prices in Sydney
Property valuations in Sydney can help give prospective home buyers a better sense of whether they are making an appropriate offer. For property owners, it is worth conducting a property valuation if you are considering selling your home to help set the best price point.
Price movements by the numbers
There is little argument amongst real estate professionals about the volatility of the real estate market throughout 2020, thanks to an ongoing global pandemic. Despite the rough patches, Sydney’s residential market remained resilient. Even as property valuations rise, buyer demand follows suit. With available inventory at 17.5 per cent below the 5-year average for the region, the result is a strong seller’s market that appears not to be changing course any time soon.
CoreLogic, a property data, information, and analytics provider, revealed the nation’s property prices recorded a 2.1 per cent increase in February 2021. This is the fastest rate of growth since 2003. CoreLogic also estimated 24,000 sales occurred across the Sydney metro area during December, January, and February. That represents a 34 per cent higher closing rate than the same period in 2020. This phenomenon is not unique to Sydney or Australia. Tight inventory and high demand have driven up home prices across much of the global real estate market.
Home prices vs apartment prices
One surprising trend is the lagging of unit prices in Sydney. Weak demand, combined with a plentiful supply of available units, has driven a rapid decrease in rents. According to Domain, apartment rents in Greater Sydney have reverted to 2013 levels. South Sydney was hit the hardest, with rents falling by 4.1 per cent since last year.
CoreLogic expects a strong seller's market to continue through 2021, as international borders stay closed. Without the influx of international students and professionals, demand for apartments will remain low for the foreseeable future.
Property prices forecast
The forecast for 2021 continues to look bright, as the hot seller’s market is expected to continue in force. Economists from both Commonwealth Bank and Westpac are forecasting housing price surges of around 14 per cent between now and 2023. Property owners who are on the fence about selling may wish to obtain a property valuation to determine if now is the right time to take the plunge.
Real estate professionals are anticipating an increase in listings as we move through 2021, which could help slow some of the growth momenta. Bringing a fresh supply of available homes and units into the marketplace can also entice more investors to return to the market.