Australia has just been through its first recession in decades and is potentially entering its second recession as the Delta variant causes havoc in Australia’s biggest cities and economic hubs.
Unfortunately, Sydney is at the epicentre of the current lockdown.
In turn, the current crisis is concerning many homebuyers, homeowners, and investors. Yet, despite the recent once-in-a-century disaster, Sydney’s housing prices continue to boom and grow.
We’re going to tell you all the details!
Recent price movements for houses and apartments
Sydney’s housing market soared by an impressive 8.2 per cent in the second quarter because of increasing demand for family-sized apartments and houses. The demand is high in Sydney’s inner and middle-ring suburbs because of the proximity to the CBD and the beaches.
Various suburbs have benefitted from the housing market growth, such as Glebe, Potts Point, and Elizabeth Bay, which have all witnessed 4-7 per cent growth in the previous six months.
The current housing market boom in Sydney is the fastest growth since 1988. In addition, the low-interest rates have encouraged investors to find excellent investments, especially after Sydney’s real estate market slightly dipped in 2020 following the initial impact of COVID-19.
The housing market has become more competitive recently because homeowners became reluctant to sell due to the pandemic uncertainty. In turn, that’s pushed housing prices upwards, and the current average Sydney house price is $1.2 million.
The last six months have been an excellent time to be a homeowner, but not the most fantastic time to be a buyer as prices continue to soar at the fastest rates since 1988.
Forecast price movements for houses and apartments
Most Australians — including the government — believed Australia was over the worst of the COVID-19 pandemic. Cases remained extremely low in Sydney for more than 12 months, and life went back to normal. Australia also became one of the first countries in the West to get its economy back on track.
Then, the Delta variant got into Sydney’s community and plunged the city back into a lockdown, albeit the strictest lockdown so far. As a result, the growth in housing prices in August has dropped to just 1.9 per cent amid the sheer uncertainty.
However, banks still expect Sydney to witness double-digit growth in 2021. ANZ predicted that Sydney would see a 19 per cent growth in real estate prices. But, so far, Sydney has only seen around a 15 per cent growth.
Despite the ongoing lockdown, housing prices should continue to grow in the city, and that should continue into 2022 despite the slowdown.
In contrast, due to border closures and investors’ growing concerns, high-rise apartments are likely to languish in 2021. High-rise apartments in and around the CBD are already witnessing poor results.
Sydney’s housing market will remain robust in 2021. But housing market growth may slow down in the rest of the year as COVID-19 continues to hamper Australia’s economy and prevent normal life.
If you’re wondering about apartment prices in Sydney in 2021, various property experts can give you guidance.