Super low interest rates are set to bolster the Sydney real estate market in 2021 and beyond. Economic uncertainty and outer city relocation due to COVID-19 resulted in a Q3 2020 slight decline 0.3% decline in the market, according to CoreLogic. But signs and forecasts for 2021 look promising.
But what should we expect in 2021?
Some economists are predicting a turnaround, with Sydney prices expected to rise at around 8.8%, with the low interest rates and government stimulus packages really pushing people to purchase when they can. So, what is stopping those larger growth numbers that we have seen in recent years?
We likely won’t see these recently skyrocketing prices due to the effects of the pandemic – continued uncertainty, minimal population growth through immigration and the location independence of jobs relocating many outside of the the inner-city regions.
CoreLogic noted in some of their recent weekly figures that Sydney’s housing market is performing well in auction rates with a 76.6 per cent clearance rates. Owner-occupiers and first home buyers are steering the market, particularly those who have been able to maintain stable employment. Yet the investor market is still quite low, with the ABS’s latest figures showing that investors are making up less than 15 per cent of new loan applications.
What does this mean for the rental market?
While owner occupiers and first home buyers can still take advantage of lower home prices, what we are likely to see is more demand on rental properties and therefore price increases flowing through to meet those demands.
Predicting and forecasting the market is hard at any point but predicting and forecasting as we come out of a pandemic is even harder. But, as noted by Property Update, there are some promising indicators that the market is on an upwards trend, including:
So, what about those looking to get into the market or downsize when prices are on the increase?
New developments and builds, like Montane Kellyville are popping up and are fantastic for those looking to get into the market, downsize or even upsize from an inner-city apartment. Boutique and smart technology apartments are in demand, and they aren’t lasting long on the market.
With a collection of one-, two- and three-bedroom smart home apartments, in the heart of Kellyville, these five low-rise level buildings suit everyone from the young professionals and families through to retirees looking to downsize without losing facilities.
Built for living and entertaining, if you’re looking to enter the market and beat the rush when people start to notice prices increases, Laurus Projects welcomes you to register now for Montane Kellyville.