Sydney Property Market Update

    Sydney’s property market is expected to keep getting stronger in 2021, despite the battering of the COVID-19 pandemic. And the city’s north is one of the hotspots, with people looking toward a seachange while working from home. The citywide property market is tipped to see prices jump between five and seven per cent in the coming year.

    The citywide property market is tipped to see prices jump between five and seven per cent in the coming year. Mona Vale, Bayview and Avalon are predicted hotspots in the north, along with St Ives, Pymble and Hornsby on the upper north shore. But though prices are rising, stock levels remain in decline as they have been for much of the past decade. Away from the Sydney coast, the Hills district is also proving popular, with Baulkham Hills, Castle Hill and West Pennant Hills expecting above-average price growth in 2021. Buyers priced out of the north shore regions are advised to look at the southern suburbs of Bexley, Kingsgrove and Engadine for value-for-money opportunities.

    It’s important to remember that Sydney’s property market isn’t one giant market, and certain areas hold their value and demand better than others. Property analyst Domain reported recently that Sydney inner city locations were experiencing falling prices while more affordable outer suburbs were experiencing strong demand. Bondi Junction, as one example, has seen house prices hold relatively steady while unit prices have risen steadily.

    Property Investment Australia , Sydney Evening View

    Of course, this doesn’t rule out the possibility of staying ahead of the peak. The key is to first recognise where the hot run has already been. Many property investors are now turning towards the Brisbane and Gold Coast property markets with much lower median price values and good rental returns achievable. “

    Sydney property investment has historically grown along the pebble-in-the-pond model from the CBD. Recent changes to interest rates for investment properties, falling auction clearance rates and reports from selling agents that the number of potential buyers at open homes has dropped off, indicate that the strongest capital growth in this cycle is behind us.

    Savvy buyers should look for infrastructure and planning-led growth to stay ahead of the game.

    The NSW Government has targeted certain areas for urban growth in Sydney including the Parramatta Road corridor, North West Rail Line corridor and other rail line corridors, particularly in inner- and middle-ring locations. Large employment growth centres and around improvement transport links to the future Badgerys Creek Airport precinct are likely to provide a ‘growth wave’ to surrounding localities.

    While most parts of Sydney have been through their major growth in this cycle, there are still opportunities.

    Sydney Property Market Overview 2021

    In general, we expect to see a period of stable to mildly increasing prices for the Sydney investment property market. There will still be some opportunities in certain pockets for larger growth, however, we expect rental growth to be the major feature of the Sydney residential market over the next few years.

    Now we’re into this very flat housing market cycle, because of low growth, low interest rates, low inflation macro economies, the shift from areas of affordability will be less pronounced.

    Sydney Housing trends in 2021 are similar to what is seen in the US housing market and the UK property market, where the work at home mandate due to Covid 19 is allowing renters and homeowners in dense areas to move outward to the suburbs or towns where housing is available. The strength of that outward tide tends to be stemmed only by limited supply of housing.

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

    Australian Residential Property Planners Parramatta, 91 Phillip Street 2150 NSW

    Further information on property investment in Sydney including recommended locations and suburbs is available in our free information pack eBook

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