The Market is Undergoing Changes, and Many are Positive.

The real estate market is a fluid one. Always undergoing change - many of which are positive, and even more of which are unreported. Always coveted but now more than ever, high end family homes are currently at the forefront of buyer demand, with luxury homes leading their own rise. 

We can expect growth to propel greatly for properties above $5m, while the vast remainder of Sydney homes are due to stabilise, with this interesting movement driven by limited choice and isolated, pent up demand from niche buyers seeking prestige homes - particularly those who failed to find one in 2021’s tight market supply.

No matter what the market is doing, our performance delivers consistent results. This is demonstrated by 6 successful off-market sales, the highest sale price being $3.92M, and a total of 19 properties sold valued at a combined $47.220m, with the following standout sales:

• 90 Davidson Ave, Concord selling for $2.88M. A suburb record for a semi in Concord. 
• 6 Fremont Street, Concord West selling for $2.525M after an unsuccessful campaign with another agency.
• 410/10-16 Vineyard Way, Breakfast Point selling for a building record of $1.63M after one inspection.
   

It’s the rental market’s time to shine, finding its pre-pandemic strength again. The rental market is currently experiencing a peak that is recording high rental returns and very low vacancy rates, at the detriment of tenants who are meeting significant challenges in securing rental properties. 

The national rental vacancy rate fell to 1% in March, halving year-on-year, and we are now well and truly operating in an ultra competitive, landlord’s market.

One very positive impact of the current rental dynamic is the drawcard for investors rejoining the market after their activity halt throughout the pandemic. Those looking to invest have solidly rebuilt their confidence in the market, seeing property as a safe and secure investment again.

With the interest rate increase we’ve constantly heard about finally here, the RBA this week announced a rise to .35%, breaking the record lows it has held since November 2020. Amidst a media barrage about rising rates and the real estate market hitting a growth wall, we think it’s important to have a fair and balanced view of what lies ahead as we edge closer to mid year. 

Here’s our thoughts on what’s ahead for the market:

Prices to stabilise, supply to rise
Property prices are now showing signs of stabilisation, after a huge 24 months of market growth throughout the pandemic.

It’s the least we can expect, and while prices may flatten, supply levels will pick up, taking a huge amount of pressure off prices by providing more choice for most than we’ve seen for a while.

The number of properties we’ve listed since January this year has increased since last year’s figures. We’re already experiencing a stock influx that will cascade throughout the wider market.

Buyer demand and property turnover will also increase in momentum as sellers need a new home, and our buoyant market undergoes some changes but overall, remains superbly afloat.

Return of the investor
We’ve been given ample notice of an impending interest rate rise, but this hasn’t stopped new loan commitments from recording staggering figures - up 89.6% from the twelve month period to October 2021.

Rental rises
Sydney tenants are paying $50 more a week in rent, with the median rental price increasing at the fastest annual rate in 13 years, and some suburbs recording 15-20% increases.

Domain’s latest Rent Report showed house rents in Greater Sydney were up 9.1% for the year, with rents lifting 2% in the past three months alone. These figures doubled the previous quarterly growth, outpacing houses for the first time since the pandemic began.

New housing driven by foreign buyers
The reopening of borders has made a huge impact on buying habits as the surge of foreign buyers took a hold of the new housing market, accounting for 7.9% of the demand.

According to NAB, these figures almost doubled over the March quarter and are the third consecutive quarterly rise in the overall share of market sales to foreign buyers - reaching its highest level since mid 2020.