With interest rates at a record low, and high demand for limited housing stock, Sydney’s property market is set to see an increase in property demand and sales – and property costs. It’s great news for home owners and investors, and things are only going to get better.
Since November 2013, Sydney has been seeing skyrocketing demand for residential property, with clearance rates rising so dramatically that they have pulled up property clearance rates on the national level. Clearance rates in Sydney are currently the highest of all the major cities in the nation, and the demand for property has been so high that some industry experts expect property prices to increase up to 20% in 2014.
But even with prices on the rise, experts note that there’s still plenty of room for housing stock to increase in value further, given Sydney’s high income levels. While Melbourne residents are beginning to feel the squeeze, Sydney’s high-earning locals are able to make bigger purchases – and the property market will continue to grow accordingly. Sydney experts have noted that sales have been so strong that the government has seen record growth in stamp duty revenue since records began.
In addition to low interest rates, property clearance rates have been driven in part by lack of new housing stock, meaning that potential buyers are looking at existing properties rather than building new homes. The dearth of inventory is great news for sellers, as buyers are willing to pay higher prices for the small piece of the pie that’s available.
This points to two great opportunities for sellers: high prices for existing housing stock, and a massive demand for land that can be subdivided or used to build new housing stock. The demand for new houses across the nation has been high, with similar trends in Sydney, meaning that those sitting on land titles are in a great position to negotiate with buyers willing to sign on the bottom line.
For property owners and investors, it’s a great time to be in the market, as projections indicate that demand is only going to increase throughout the year as buyers continue to seek out viable housing stock. As a result, rental demand is likely to remain high as well, with would-be buyers or those priced out of the market looking for property to lease in the interim.