The Sydney property market has been one of the most consistent over the last 40 years.
It has remained strong, year after year even with some speculating that it will take a turn.
Auction clearance rates have remained strong over the last 12 months along with more than a 20% increase in value over the last year. This 20% increase is compared to an average 7% increase over the last 10 years.
Should you buy
While property price rises have been amazing for property owners it has been a difficult time for those who are looking to buy. The demand for property has been far higher than the number of available properties in the market. This demand has made it incredibly difficult for those wanting to buy.
Expert commentators are suggesting that Sydney property prices are going to slow and become more sustainable. If you are waiting for a dip in prices, don’t, growth may slow however prices will not be reducing.
Note: Be cautious not to overextend yourself when buying property. While you may be able to borrow, think about your goals and plans for the future too.
- Apartments in high rise towers remain a little out of favour
- Off the plan apartments particularly those near universities
- Established homes in housing estates, where new homes are on offer nearby
Should you invest
Investors have been jumping into the Sydney market to ensure they are the ones who bought while prices were as low as they are now. History shows that on average your property will double every 10 years providing excellent long term results.
Convenience is key – during a lockdown, it has been evident that having access to everything we need within walking distance or by a short drive is key. In urban planning terms, it is called having a 20-minute neibourhood. Everything you could ever need is within 20minutes of your home. Tenants are looking for this as a major benefit when they are looking for the perfect place to rent.
Note: Being 5 to 15km from the CBD has always outperformed.
Read through the underperformers above:
- High rise towers have been plagued with defects, water ingression and fire compliance issues
- Off the plan apartments forming a type of lego land, have received bad press. International students and universities are going through a change
- Established homes are being ignored in favour of building new nearby for the same cost
Older apartments – those built in the 60s and 70s have stood the test of time and proved to be good investments.
Sydney property will always perform well. As long as you are not overstretched financially it will be a good choice for growing your wealth.
At Select Conveyancing, we are here to help you with both your property purchases and your property sales. Contact us today
This blog is written as a guide and we strongly recommend that you seek your own financial advice.
Statistics – Corelogic 2021