Our property market predictions for the Sydney winter
Sydney real estate has been on an interesting journey over the last few years.
With the colder months about to set in, we are likely to enter a new phase, so let’s take a look at what has been happening over the first four months of this year and what we think will happen in winter.
It’s actually quite good news, despite what you may see the headlines saying.
Buyer interest continues
Things definitely slowed down towards the end of last year but we have actually noticed buyers coming back into the market at the start of 2023.
Due to low housing stock and plenty of interest from renters, international buyers are seeing Sydney as a safe investment bet. Cashed-up international buyers have been supporting the high end of the Sydney real estate market, snapping up properties valued in the tens of millions. Many of these buyers are coming from China and Southeast Asia because they see Australian property as a stable investment compared with homes and economic conditions in their own countries.
The trend for downsizing is also continuing. With the rise of interest rates over the past months, many older Australians are deciding to take action and move to a smaller property. Those who had family homes are using the equity from their sale to buy smaller, more reasonable properties in areas that are close to shops, restaurants and hospitals. This means that if you are hoping to sell a smaller property or apartment, there is a good chance you will have interest from older couples as well as young professionals.
First-home buyers are also in the market. The government is in the process of overhauling first-home owner grants, so by winter, there is a good chance that first-home owners will be flooding into the market in even greater numbers.
Demand is higher than supply
When it comes to the Sydney real estate market in 2023, stock is still limited. Because of this, prices went up recently for the first time in 11 months. This is great news, particularly because even though they dropped last year, they did not go back to pre-pandemic levels. If you were able to hold your home in 2022 and have owned it since prior to 2020, you should still be ahead in terms of equity.
Whenever demand exceeds supply, the suppliers get to set the price. Right now, home sellers can expect a very comfortable price for their property, especially in sought-after areas like Neutral Bay and the lower north shore. It also means that they aren’t likely to wait long to sell.
The rental crisis is continuing
Australia is in the grips of a rental crisis, and there are no signs of it ending in 2023. Again, it all comes down to supply and demand, and results in healthy rental yield for investors.
Those who have the funds to invest are doing so and locking in interest rates ahead of potential future increases. This is another reason why now is an excellent time to sell, or to purchase an investment property and lease it to tenants.
Neutral Bay Real Estate in June, July and August
Here in Neutral Bay, we continue to field enquiries from interested local and overseas buyers who are very keen to make a purchase in the winter. With stock expected to be even more limited in winter, it is a great time to list your property and achieve an outstanding price.
Of course, your decision to sell depends on you and your circumstances. Contact us for a market appraisal and a discussion about a strategy that will align with your goals.
