The last year has given Australia its first recession in modern history. Australia managed to escape the wrath of the 2008 Global Financial Crisis, but it didn’t escape the profound economic damage of COVID-19. However, Australia did make a far faster recovery than other Western nations.
Therefore, there’s been vast concern over Sydney’s real estate market as Sydney plunges back into lockdown and a potential second recession.
Yet, that doesn’t hide the fact that Sydney’s real estate prices have grown by 400 per cent in the previous 30 years. Moreover, Sydney has seen record property prices in recent months.
Let’s take a deeper look into the current trends
Recent price movements for houses and apartments
The second quarter of 2021 saw Sydney’s housing prices skyrocket by an impressive 8.2 per cent. That results from a growing demand for family-sized apartments and houses in Sydney’s inner suburbs or middle ring.
In addition, Bondi Junction, one of Sydney’s most desirable spots, has seen a 3.5 per cent gain in house value in 2020.
Researchers found that Sydney’s housing market fell from the end of 2019 to the end of 2020 due to the pandemic. Then, the initial damage of the pandemic subsided, and Sydney’s house prices started to skyrocket as people went back to normal life.
Furthermore, Sydney’s housing market has grown faster than many economists predicted in the past 12 months. That’s mainly due to the successful containment of COVID-19 after the initial outbreak.
Guess what? Sydney’s house prices smashed record highs in June as homeowners sold their houses for around $1.2 million. In addition, dwelling values soared by an impressive 10.6 per cent in the last year. All of this is a result of Australia’s fast economic recovery.
Then, the Delta variant escaped hotel quarantine and plunged Sydney into its worst lockdown so far. Housing prices climbed by 1.9 per cent in August 2020, but the current lockdown has slowed down growth from the second quarter of 2021.
Forecast price movements for houses and apartments
Sydney is in its worst place so far regarding the COVID-19 pandemic, and a second recession could be on the cards. However, the city should experience double-digit growth throughout the year.
Various banks predict that Sydney will witness double-digit growth in 2021, and these include ANZ and Westpac. There’s a solid demand for houses in the middle-ring and inner-ring suburbs.
Family-friendly apartments in inner suburbs are an excellent investment. That’s because of increasing demand from investors and homebuyers.
Apartments in high-rise buildings — especially around the CBD — will likely stagnate. That’s because investors have become wary of high-rise apartments and the borders remain shut.
Conclusion
Sydney’s housing prices will increase in 2021 despite the ongoing economic problems and COVID-19 uncertainty. That said, it’s currently not the best buyers market as house prices continue to soar throughout the city.
Do you need more guidance on Sydney’s house prices? Experts are on hand to give you advice on the current property values in Sydney. And don’t forget to research properties to buy in Sydney before you make your decision!