Sydney’s Property Value Growth Continues Through September
CoreLogic RP Data has released its latest figures for September 2016, and we now have a much better overview of how the Sydney and Australian property markets are looking.
With Q3 drawing to a close, it’s very clear that the trend in the capital cities is still heading upwards, increasing by 1 per cent during September and 2.9 per cent since July. This growth has certainly slowed since a few years ago, but the fact that things are still trending upwards has surprised many property experts who had expected things to stabilise or begin to decrease.
As it has for a while, Sydney remains at the front of the pack, which reflects the numbers of new residents flocking to the city as well as relatively low stock – at least in comparison to demand. In this article, we’ll break down some of the data from the last quarter as it relates to Sydney and explores what this means for buyers and sellers in the city.
This growth is good for the city and has contributed hugely to the many developments going on around the central and outer suburbs.
Growth continues in Sydney
Over the past three months, Sydney has seen a 3.5 per cent rise in property value. This means that overall there has been an increase of 10.2 per cent over the last year, which positions New South Wales’ capital as one of the highest performers amongst the country’s big cities.
Ultimately, this growth is good for the city and has contributed hugely to the many developments going on around the central and outer suburbs. Whether we’re talking about more homes or better public transport options, Sydney is growing very quickly and seems set to retain its place as one of the countries most advanced and connected metropolises.
What’s the impact for buyers and sellers?
So, what does the increase in value mean for buyers and sellers in Sydney? Well, for sellers the news undoubtedly remains good, with people putting property on the market able to expect higher prices and a better return on investment. This is compounded by the high clearance rates that we’ve seen over the last few months – again due to a lower amount of stock and high demand. In fact, CoreLogic also reports that auction clearances have been above 75 per cent throughout the country for the last five weeks, so the traditional ‘silly season’ is most certainly still going.
This means that now remains a good time to sell, although we’ve certainly been saying that for a long time now! The big question then is how far things will continue to climb. While many have been predicting a plateau for a while, it remains unclear when that will actually arrive. It may be tempting, therefore, for sellers to wait to sell in anticipation of further increases in value. This could pay off, but there is certainly a slowing, so any increases from now onwards are hard to predict – especially once we get into the quieter Christmas and New Year period. For buyers, there’s still the issue of home affordability, which we all know is an issue in Sydney. Fortunately, new developments such as rail and apartment blocks are aiming to provide more dwellings within easy transport of the CBD. Hopefully, this will result in more opportunities to get onto the property ladder at a realistic price for first home buyers, but as always we’ll have to wait and see how the market goes over the next few months.
For more information on buying, selling and renting in Sydney, be sure to get in touch with Laing+Simmons today.