Unless you’re scouring the headlines every day, it’s hard to keep up with the state of the property market in Sydney. After all, it doesn’t always perform the way we expect it to! This year, the Sydney property market was pegged to take a dip due to the second wave of lockdowns. But it didn’t.
In fact, the property market in Sydney grew by 16.8% in the past 12 months, according to the Australian Bureau of Statistics (ABS). This growth was spurred on by government grants and record-low interest rates.
But one statistic alone doesn’t tell the whole story, and there are several sub-markets that make up our beautiful city, each with its own story. So, what are the tell-tale signs that the property market in Sydney is (still) on the up-and-up? Keep reading to find out.
1. Auction clearance rates are staying strong
A city’s auction clearance rates are typically a good indication of the strength of the market, as it provides a good indication of buyer demand. Sydney’s auction clearance rates were at a healthy 83% as of last week, even though the city is still in lockdown.
2. Buyer demand is high
Pent-up buyer demand after lockdown means that there are plenty of buyers out there. Demand in Sydney hit record levels in August but this could change as more stock hits the market and supply catches up with demand. Then again, with the restrictions easing next month, consumer confidence will increase. As the economy strengthens, this could easily push more buyers into the market, propping up the property market in Sydney.
3. New listings are increasing
With the start of spring and the end of lockdown in sight, there has been an increase in new listings over the past few weeks, according to Domain. This increased activity is likely to continue as the year closes.
4. Increasing prices
An increase in prices in the property market in Sydney is one of the most obvious indications of the health of the market. Of course, this depends on which suburb we’re talking about, but, overall, data shows prices increasing in 94% of all Sydney suburbs over the last two years.
5. Time on market
The average “time on market” (TOM) is also a good indication of the balance of demand and supply. A longer “time on market” can indicate increased supply levels. The TOM in Sydney has continued to decrease in recent months, indicating that demand is high. Again, this can vary quite drastically by suburb, so it’s important to do your own research and an in-depth suburb analysis in the areas you are concerned with.
When it comes to predictions for the property market in Sydney, only time will truly tell, but Tolga Ozer, Director of Boutique Property agents thinks that, with the market picking up speed, sellers should beware waiting too long.
“While things can be uncertain during the lockdown, there is a highly motivated buyer pool and there will be less competition due to the current shortage,” he says. This means that more sellers are able to sell quickly, at a good price.
Ready to sell? With the market heating up, depending on where in Sydney you own property, now might be the perfect time to sell. Soon more sellers will start listing, and supply will start to keep up with demand. The process of listing a property can also take time, so we would urge sellers not to delay for long. Contact us today to get started.
Or, for more information, click here for our full Sydney property market update.