Sydney has always been one of the world’s most expensive cities. That’s because Sydney is one of the world’s most economically powerful cities, with a glorious outdoor sunny lifestyle. However, Australia has gone through its most challenging economic disaster in modern history. The COVID-19 pandemic created vast uncertainty for Sydney’s real estate market in 2020.
Unemployment grew, Sydney’s GDP dropped, and the city went through unprecedented lockdowns. Yet, despite all these problems, Sydney’s housing market remains robust and powerful.
Property prices have grown by an impressive 8.2% in 2021’s second quarter. But will this growth continue? Let’s look into this!
Recent Price Movements For Houses And Apartments
Real estate values in Sydney have increased in recent months despite the ongoing lockdowns and economic despair. Various inner suburbs, including Glebe and Elizabeth Bay, saw around a 5 per cent increase in house prices in the last 12 months.
There has been a strong demand for inner-suburb or middle-ring suburban homes and family-sized apartments last year. As a result, house prices have increased, and Sydney sees its fastest real estate market growth since 1988.
There has also been a strong demand from homebuyers and real estate investors because of low-interest rates. As a result, Australia tries to encourage people to buy homes despite the ongoing economic uncertainty.
Nevertheless, the housing market has become more competitive as people are more reluctant to sell their homes since the pandemic began. That has helped to fuel the prices of homes and apartments in the last 12 months.
Sydney’s current average house price is around $1.2 million, with impressive growth of about $1266 daily. So it’s been an excellent time to be a homeowner. Still, with rising prices, increasing demand, and fewer homes on the market, it’s been challenging for homebuyers.
Forecast Price Movements For Houses And Apartments
Australia’s COVID-19 situation seemed under control, but now everything has come into doubt again. Many banks predicted double-digit growth for Sydney’s real estate market in 2020, but many also see a slowdown as the year progresses.
ANZ predicted Sydney house prices would increase by 19 per cent in 2021. So far, Sydney’s house prices have seen a 15 per cent growth, but the ongoing lockdowns and uncertainty could slow that down. Although it seems unlikely Sydney will reach the overall optimistic 19 per cent growth, the market should still grow by double-digits in 2021.
The biggest casualty is high-rise apartments in Sydney, and prices have stagnated since the pandemic started. That is a combination of international border closures and investors pulling away from these types of investments.
On the contrary, houses and apartments in inner suburbs and middle-ring suburbs will see impressive growth in 2021.
Sydney’s real estate market — which has been 400 per cent growth in 30 years — may start to slow down this year. That said, the growth continues to be very impressive, and there are no signs of a significant slowdown for most real estate options in the city.
If you’re interested in knowing your property’s genuine value, you can get expert guidance on Property prices in Sydney.