Sydney property prices: Where are we headed?
After almost five years of stellar capital growth here in Sydney, sentiment appears to be changing out there in the public. Certainly the media have been printing more “doom and gloom” stories than previous years, and whilst selling agents will generally remain optimistic (after all their job is to sell!) on the ground we have been noticing a fall off in buyer interest and attendance across some Sydney properties. There is a subdued feel to the market that certainly wasn’t evident three months ago.
The real story, however, is in the hard data of statistics and whilst it’s still early days, it is evident that recent policy changes (including stamp duty concessions for first home buyers and further restrictions on foreign buyers and investor lending) will also impact the market. The experts in the field, however, appear to be split over what the future holds for Sydney and it was interesting to read the latest Domain article with very varying opinions from AMP’s Shane Oliver through to Domain’s chief economist Dr Andrew Wilson. Forecasting is not an exact science, as we all know, and particularly when it comes to the real estate market, however the article is worth a read to understand where the experts are coming from.
From our on the ground view as buyers’ agents, we consider it a very mixed bag. As I have stated previously, Sydney is not and ever will be ONE market. It is very segmented, and certainly across different price brackets. Those suburbs that have always been in high demand, well situated to public transport, good amenities and favoured predominantly by owner occupiers should continue to hold their own, and whilst a cool down of growth may be on the cards, we don’t expect any major price decreases or drops in the current environment.
What is clear is that, in any market, it pays to ensure that you buy well, negotiate effectively and obtain the lowest price possible. An excellent and experienced buyers’ agent can certainly assist here, and in a slower market, you may save far more than anticipated by engaging professional help.