It’s really quite hard to fathom the precipice we were standing on this time last year. When we went into lockdown in March the uncertainties in terms of the economy, our health and the future felt extensive and extreme. And so it feels equally extraordinary that just one year on we find ourselves in a place where Sydney achieved an increase in property values of 3.7% in March. What do we take from that kind of turnaround….
There are a couple of ways you can look at the rapid return of value in the Sydney property market and in my opinion both are equally valid.
You can see it through a lens of market unpredictability.
The last year has clearly demonstrated the market is very susceptible to external forces which can be as unexpected as they are extreme. It has reminded us value cannot be guaranteed. In March last year, we saw demand virtually disappear overnight. In March this year, we have seen demand at unprecedented levels. There is an inevitable risk that it can change very quickly and it can change with seemingly little explanation or warning.
Alternatively, you can reflect on events of the last twelve months through a lens of market resilience.
With growth for Sydney property now sitting at 6.7% for the quarter and 5.4% for the year, the resurgence of value demonstrates the core strength of the market. The last year has demonstrated that regardless of external turmoils Sydney property does return to equilibrium and that it does continue to deliver strong value.
I suppose it comes down to whether you see the glass half full or half empty. The very uncertainty of the market in itself delivers opportunity. So my advice to all property owners is to stay in touch with your local residential sales agent.
Property is the key investment for most households. More than ever before we are acutely aware of the value of that investment and, I think more than ever before, property owners are constantly evaluating that value in terms of their broader financial security.
A key service provided by our sales team is providing regular property appraisals. I advise even property owners not actively looking to list to stay up-to-date on the value of their property. If we have learned nothing else from the last year it should be that things can change and opportunity can emerge unexpectedly. It doesn’t hurt to be ready to so you can respond rapidly and potentially capitalise on those market changes.