Sydney Property Market Update

Sydney has emerged as a city for high-end, knowledge-based business and financial services jobs in 2024, earning it the title of the economic hub of the Asia-Pacific region. This increase in job creation and confidence has also led to population growth, which has further boosted the real estate market.

Sydney property prices are projected to fall slightly in late 2024. However, this is after housing values in Sydney had soared a massive 27.7% over the past few years.

Looking at the Sydney property market more recently, the median home price in 2024 is $1,257,000 and median unit price was $783,500 at the start of 2024.

Sydney’s housing market has so far contrasted previous expectations and outperformed most markets despite a relatively slow economic recovery and being overly exposed to recent migration losses. With housing affordability now worsening and first home buyers showing signs of being priced out of the market, the bulk of these gains have likely now been realised.

Prices have since reduced from peaks seen in previous years, however Sydney’s property market continues to fetch high prices, especially in some of its most sought-after areas.

When it comes to locations with the greatest demand potential, more and more buyers are looking at obtaining properties in Sydney’s larger regional locations, particularly in lifestyle locations such as Byron Bay, the Central Coast, the Hunter Valley, and the NSW South Coast such as Wollongong. Beachside suburbs should also continue to perform strongly as they are likely to outperform the broader market as a whole.

There is also a definite flight to quality, as Class A owners and investment grade properties are still in short supply to general strong demand, while Class B properties take longer to sell and Informed buyers avoid C-class properties.

Property Investment Australia , Sydney Evening View

Sydney Property Market Overview 2024

Apartment demand in 2024 is expected to continue to attract investors as immigration increases significantly, bringing additional demand to the rental market. This increased demand in alignment with renewed investor activity and more interest from first home buyers priced out of the house market could help mitigate those price falls.

Family housing in prime Sydney suburban locations is expected to thrive amid growing demand from owners and investors, but apartments in high rise towers will continue to decline.

Sydney’s apartment market has outperformed housing, and the record price gap is now narrowing as house prices have fallen from their respective price peaks more than twice as fast as they rose.

Despite falling vacancy rates, Sydney remains an attractive destination for both locals and newcomers.

Australian Residential Property Planners Sydney, 65 York Street Sydney CBD 2000 NSW

Australian Residential Property Planners Parramatta, 91 Phillip Street 2150 NSW

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