Curious about the Sydney property market forecast for 2024? Let's explore the predicted trends and gain insights to navigate the market effectively.
1. House Prices on the Rise
Predictions for 2024 indicate a continued upward trajectory in house prices, with the PropTrack Property Market Outlook Report forecasting an up to 5% increase.
2. Post-Recovery Dynamics
After a 27.2% surge in property prices from 2021 to 2022, Sydney reached its peak during the Covid-19 pandemic in January 2022. According to Core Logic, dwelling values increased by 1.8% over the last quarter and 10.2% over the past year, signaling a recovery stage in the property cycle. Contributing factors include the reopening of international borders, an influx of skilled immigrants and overseas students, and limited housing supply counteracting higher interest rates.
3. Continued Demand for Grade A Homes and Family-Friendly Apartments
In recent months, well-located A-grade homes and "family-friendly" apartments have experienced high demand, while B-grade properties face longer selling periods. Informed buyers are steering clear of C-grade properties and cookie-cutter high-rise towers.
4. Rising Demand for Units
Current constraints such as affordability challenges and reduced borrowing capacity are redirecting buyer demand towards units. With Sydney's current population standing at 5.2 million, projections for mid-century estimate 8 million residents in Sydney and 10 million in NSW, driven by the city's unique lifestyle and economic benefits.
5. Prolonged Property Search Times
Extended property time frames persist as fierce competition in high-demand areas prompts potential buyers to invest more time in the search for the perfect property or wait for the right opportunity. Low stock levels are anticipated to persist in 2024, intensifying competitive market conditions. Investor sell-offs, often with tenants in place, are indicative of mortgage stress, presenting challenges for first-home buyers.
6. Anticipated Fall in Interest Rates
As interest rates are expected to fall in 2024, more buyers will seek entry into the market. Government initiatives to address housing affordability and support first-home buyers will drive significant activity. The prevailing urgency to secure purchases before further price increases amplifies the sense of FOMO and points to a dynamic property market in 2024.
At Treak we understand the challenges of navigating the property market – it’s all we do! If you’re looking to secure your dream property in 2024, we’re ready to help.
Give us a call on 0433 156 465 or contact us here to hear how!
Best regards,
Renae Treak