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Sydney Property Market: End Of Year Update with Joseph Fairchild

 

We’ve all seen the headlines about interest rate rises and Australia’s median house prices falling. The main culprit was the rapid rise in interest rates, which has increased at an unpredictable rate. 

As we wrote mid-this year, well-located, family-friendly houses in Sydney’s inner suburbs performed strongly due to increasing demand from owner-occupiers. However, as predicted, apartment prices have lagged in comparison. 

Let’s put things into perspective.

Interest rates are rising, but they’re still low by historical standards. 

The Reserve Bank of Australia has raised the official cash rate target from a record low of 0.10% to its current level of 2.85%. This is the first time rates have increased in more than 12 years, and while hikes are expected to continue in the months ahead, they are likely to be gradual. 

Median prices in different pockets of Inner Sydney

Let’s have a look at how different pockets in Sydney performed in 2022: 

  • Sydney CBD

Apartment prices are down -1.28% 

  • Ultimo

House prices in Ultimo are down -3.6%

Apartment prices are up + 0.4%

  • Pyrmont

House price in Pyrmont – no change

Apartment prices in Pyrmont are down -13.8%

  • Glebe

House prices in Glebe up +14.8%

Apartment price in Glebe down -1.0%

  • Surry Hills

House price in Surry Hills up +3.6%

Apartment price down -1.8%

Silver lining – First Home Buyer Choice

The NSW Government now provides first-home buyers purchasing properties for up to $1.5 million the ability to choose to pay an annual property tax instead of stamp duty. The property tax will only be payable by first-home buyers who choose it and will not apply to subsequent property purchases.

This initiative is designed to lower the up-front costs of home purchases and help to boost the rate of home ownership in NSW.

As a result, in our specialised area of Sydney CBD, we have seen a rise in owner-occupier purchasers. 

For more on First Home Buyer Choice

Sales in our area

Despite the interest rate challenges, we are pleased that 2022 has been a stable year for our agency. Our auction clearance rate has remained 100% (knock on wood). 

We achieved several record prices, including:

3801/2 Cunningham St Haymarket. This three-bedroom sub-penthouse apartment with stellar views sold for $2,250,000

314 Bulwara Road Ultimo. This two-bedroom multi-level terrace on a 70sqm land in Ultimo sold for $1,630,000

4808/93 Liverpool St Sydney. With excellent views of Darling Harbour, this two-bedroom unit in World Tower was sold for $1,800,000. 

Rental Market

We are pleased to report that the Sydney rental market has gone gangbusters. Prices have increased significantly in the past year, and there’s no sign of slowing down. 

And finally…

Currently, interest rates are rising, and house prices are falling—but it’s important not to get too caught up in these headlines. Rates are still low by historical standards, and while prices have decreased modestly over the past year, they’re still well above their long-run averages. 

Now still stands an excellent time to divest if you are looking at selling your property. You currently have a larger pool of buyers you can work with who want to take advantage of the first home choice scheme, resulting in a higher sale price and lower days on the market. 

If you’d like to know more about the current market or how Metro Realty can help you contact our expert team today.

AUTHOR

Joseph Fairchild

Joseph is an award winning real estate agent, local property economist and thought leader in the property industry. He is well versed in advanced property strategies (such as vendor finance, delayed settlements and back-to-back settlements for off-the-plan properties) which many other agents would place neatly in the ‘too hard’ basket.

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