Sydney Property Market Update
Sydney provides the least affordable housing in Australia, however, it is also a market considered to provide the least volatility, offering a greater degree of resilience than its local and international counterparts.
Opinion is divided regarding the outlook for Sydney’s residential housing market in 2013. However, experts agree that interest rates will be the driving force for the market as the year unfolds.
Many mid-priced suburbs are considered to have reached their price trough in 2011, while prestige prices have experienced mixed results and affordable markets have risen and fallen in line with changes to State Government housing stimulus.
In 2013, demand for affordable property in Sydney is notably stronger. The days on market rate in these suburbs (the number of days a property is listed before it sells) has reduced significantly, with instances of properties selling in days rather than weeks or months. There has also been evidence of an upward movement in pricing due to notably strong demand for affordable properties, which has had some impact to the availability of stock.
Household budgets are experiencing relief as mortgage service costs ease. For some, this presents an opportunity to reduce debt, rather than sell, upgrade or take on greater debt.
Activity among first-home buyers has declined as they are priced out of the new home market. However, investors have absorbed this reduction resulting in an overall increase in competition in the marketplace.
Segments of the prestige market appear to be in a phase of stabilisation, while affordable markets in the south, south west and western areas of Sydney are demonstrating positive growth.
Chris Lackey, State Manager (NSW)
WBP Property Group