I’d prefer not to buy into the hype but it’s hard to ignore the excitement that’s building. After months where it has been hard to distinguish one day from the next, it really does feel like something is about to happen. I’m not talking about politics; I’m not even talking about the easing of restrictions. I’m talking about property!
The latest data from CoreLogic shows residential property prices in Sydney have grown by 23.6% in the last twelve months, including a sizeable 1.9% growth in the last month alone.
Now to be clear the CoreLogic data shows that monthly growth is down from a high in March during which residential property across Australia grew by a remarkable 2.8% but growth of 1.9% is still substantial! And from where I sit, I think there is more to come.
I think there is a real possibility post-lockdown activity could ignite growth even further. I think we are going to see substantially more properties come to market.
Of course, there are no guarantees, and we always must be ready for the unexpected (refer to NSW politics!) but with restrictions set to lift our team are working closely with significant numbers of clients preparing to list their property.
The idea of more available stock traditionally will make vendors a little nervous at the prospect of diluted demand dampening prices. However, I don’t see that happening. News that APRA is tightening lending restrictions might dampen some level of demand for those looking to push their financial boundaries but that is not a bad thing for all involved.
I still believe the unfulfilled demand we have seen over such an extended period will fuel potential buyer determination not to miss out. Keep in mind across the country advertised listing numbers are down 28.1% on the five-year average while the number of sales is 25% higher.
So even if there are more properties to choose from, which I expect there will be, I expect values will be maintained, if not increase.
Certainly, our team is gearing up for busy days ahead. They remain in close contact with swathes of clients who are looking to list, looking to buy, and sometimes hoping to do both! I feel the excitement is building.