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What is happening to the Sydney Property Market?

  • October 3, 2018
  • News
What is happening to the Sydney Property Market?

When it comes to speaking about the Property Market in Sydney, you hear so much, whether it be from the media, friends or family. Some people are adamant that the property market will drop up to 40%, others ridicule this theory stating the property market will collapse should it fall 40%. Economists put the prediction to a 12% drop in property prices. Then I hear others saying the property slump will last only 6 months and will pick up in July 2019, whereas others say it will take a good year or two. How does anyone know what will happen?

Lets look at the facts and figures:

  • In the last 10 years, Sydney house prices has skyrocketed 113%
  • House prices today have only slumped 6.49% this same time as last year
  • The average median price for a house in Sydney is expected to reach $2,000,000 by the year 2028. Today the median is $980,000

Pretty interesting when you look at property prices over time and not just in a certain period. There are other factors that impact the Sydney Property Market as well. Here are a few that most don’t even know about:

  • Sydney is currently growing at approximately 1258 new people per week
  • Yes the overseas investors snatching up Sydney property have slowed down and this was a major factor that turbo charged our property prices over the last 3 years. But now, we can see that property prices are only adjusting, NOT collapsing
  • The government is pouring billions of dollars into the Sydney infrastructure and projects are currently being worked on and also planned for the next 5-7 years
  • Banks are tightening on lending money by looking at the serviceability of their clients. In the long run, this will buffer the market from a financial downturn. Can you imagine what will happen to the banks if the market did drop 40%? This would have a domino effect on so many fronts

My advice to all around me is simple. The property game is a long term investment. Don’t make drastic decisions that in 5 years time from now you will look back and regret. If you are in a comfortable position, some property bargains are out there and will be snapped up by others. Now is the best time to buy, but you should always be careful where you are buying and know the area you are investing in. What you have in mind and the direction you want to take should heavily impact on the type of investment you make.

Do you have property investments you want to ensure are being capitalised? Are you wanting to invest in property but not sure where to buy or when to invest? Call M1 Properties today for a no obligation chat. We love to help all as your success is our success.

 

James Merheb

M1 Properties Managing Director & LREA

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