Eye-watering Peak in the 2021 Sydney’s Property Market
At the intermittent rate of which the Australian property market is fluctuating, Sydney is seeming to come up on top as ‘top-performing’ within the housing market in 2021. Despite the COVID-19 pandemic and unforeseen extent of the imposed lockdowns and restrictions, the property market continued to boom as many locations in Sydney experienced an eye-watering 25+% increase in house prices with the median price now reaching an astonishing
As a result of the COVID-19 instigated lockdowns, many were elicited to consider the lifestyle with which their properties were endowing them. There has been an exceptional sighting in the levels of demand in the market however, it has been seen that current buyers in the market carry on with superseding sellers. Dr Nicola Powell, Domain’s Chief of Research and Economics, deems that the pandemic resulted in more awareness and focus being put on our properties due to spending a considerable amount of time in them, making them our ‘everything’ in and out of the lockdown.
The eye-watering peak in Sydney’s property market has generated an issue in terms of affordability. As lockdowns and restrictions begin to ease demand is anticipated to alleviate, and sellers will therefore be enticed to reacquaint themselves with the property market, allowing for the inflation of property stock, which in succession results in more options for buyers.
So what will the 2022 year look like in terms of the property market?
For Sydney in 2022, the property market is forecasted to continue upsurging by approximately an additional $102,000 on average, demonstrating at least an 8% increase in prices.
The anticipated peak is expected to jump as the borders reopen and international travel returns. The resumption of travel could potentially welcome back overseas investors combined with domestic buyers which may replenish the property market to a greater extent.
According to data obtained from research on prime property markets around the world by Knight Frank’s Prime Global Forecast, Sydney will rank as the second-highest city for prime price growth in the year 2022 (prime forecast of 9%). This evident increase in property prices is not just sequestered to Sydney as data indicates that 84% of global cities experienced an increase in prices on a yearly rate, a number of which is being seen to increase quarterly. The NSW capital is indicated to continue experiencing an ascending fluctuation in the property market in accordance with other cities worldwide.
In correspondence with data obtained by Michelle Ciesielski, Knight Frank’s head of residential research, Sydney’s property market has now experienced 35 successive quarters of undisturbed yearly increase. Being one of the top contributors to Sydney’s exceptional property values, the market is operating remarkably with various residential records being attained in surplus of an astonishing $10 million, particularly considering homes situated near the water.