It feels like Christmas was just yesterday and we’re only just adjusting back into work. Yet the property market is already heating up in Sydney and we think it’s going to be a huge year! In this blog, we’ll discuss our top predictions for the Sydney property market in 2021 to help you make informed decisions when it comes to buying and selling.
With the devastating bushfires and the pandemic causing panic in Australia, 2020 was a little chaotic, to say the least! But now things are looking up and the government has established a relatively stable hold on the pandemic. This, combined with record-low interest rates and government stimulus has renewed consumer confidence, propping up the market and contributing to a surge in activity from new buyers.
So, what’s next for the Sydney property market? Is now the right time for you to buy or sell property? Keep reading to find out.
Our top predictions for the Sydney property market in 2021
Despite the events of 2020, Sydney’s property market has proved itself to be remarkably resilient in the face of chaos.
Over 70 per cent of the jobs lost during COVD have now been restored and government stimulus packages have helped boost the Australian economy. Growth in property prices will continue this year, driven by record-low interest rates which will allow buyers to re-enter the market. The rollout of COVID-19 vaccinations across the state will bolster consumer confidence even further.
The growth of the Sydney property market in 2021
Throughout the outbreak of the pandemic, Sydney home values were down a mere -2.9 per cent, yet by mid-October, the market started rising again and that decrease was all but reversed overall. 2020 concluded with sellers seeing a +3.73 per cent change in its Sydney home value index overall over the last year, according to Corelogic.
Louis Christopher, managing director of SQM Research, is tipping Sydney property prices to rise by as much as 11 per cent in 2021.
It’s the perfect time for both first home buyers and investors looking to re-enter the market. Buyers can feel secure in the knowledge that despite rising prices, they will see a healthy increase in their investment. They may even see increases by the end of 2021.
That’s not all though; Sydney property prices are expected to continue to increase to a total of 14 per cent up until 2023, according to Westpac economists. The Reserve Bank has also announced it will hold low interest rates for about the next three years.
Smaller households will become more common
Soon, Millennials will make up one third of the property market, and they won’t need large homes. They’ll be looking to break into the market with smaller homes or units, probably in areas close to work or with their preferred lifestyle factors.
Additionally, as rents increase throughout 2021, investors will start to return to the market to take advantage of low interest rates. There’s never been a better time for them to own a property without having to pay hefty interest rates. Overseas immigrants are expected to return to our shores in droves throughout 2021. As they do, the rental market will bounce back, and so will investor activity.
High-quality properties still reign supreme
Above all, areas with guaranteed long-term growth will continue to grow. According to Domain’s House Price Report, the city and the eastern suburbs of Sydney saw a steady 14 per cent increase in 2020, while some areas of eastern part of the city, such as Alexandria, saw an enormous increase of almost 30 per cent, up to September .
Anything which can make a property unique will always contribute to its value; for instance, a world-class view as featured in this beautiful inner-city apartment. A property like this will hold its value well, especially in the long term.
Buying and selling property in Sydney can certainly feel overwhelming, especially when market conditions are in a state of flux. At Boutique Property Agents, we have an in-depth knowledge of the Sydney property market. We can provide expert tips and advice for those who are considering buying or selling. For expert advice, contact us directly, start browsing our current listings or explore more selling advice here.