When you think of Sydney, a picture of the Sydney Opera House flashes through the listener’s mind; a place of entertainment, joy and laughter, sometimes a little sadness on account of a melancholy performance.
This autumn in Sydney’s real estate market 2018, the emotions of euphoria and sadness are going to exist side by side. Last year, it was bumpy ride for the real estate market in Sydney. But this autumn, it is expected to be quite stable, possibly in favour of buyers, who are looking to buy a house at relatively lower prices. And this is what you can expect!
In this article, we will explore the possible trends in Sydney’s real estate market.
First, let’s recap what happened in 2017.
Sydney’s Growth & Slump in 2017
It was the last quarter of 2017 when the slump hit. A decrease of 0.5% was recorded in real estate prices. In fact, the impact was felt throughout the country, while some cities like Adelaide and Perth experienced no change in prices at all.
On a positive side, Sydney had 7.7% in the first three quarters, which his not bad.
Expectations in 2018
The news of real state turndown is echoing in Sydney and experts in industry have mixed views for this year, some are downright negative and some are still optimistic. Before exploring what 3 expert commentators have to say, we still strongly recommend you speak to those operating locally within the industry to get a frontline report, say from the network of Laing+Simmons Sydney real estate agents. Let’s see who expects what and what it means for the real estate sellers and buyers.
Prediction by Cameron Kusher
The head of CoreLogic, Cameron Kusher predicts a fall of 2% to 3% in real estate prices, a fall that could reach up to 10% to 15%. He further intensifies his statement by adding that it’s the impact starting from Sydney that will spread nationwide. He bases his predictions on last quarter’s performance in 2017.
According to him, the possible reasons include;
- Abundance of available properties
- Stricter limitations on home lending
- Scarcity of investors
As for Sydney, he even suggests that property owners with more than 10 years of possession should sell their properties and move to other regions. He is optimistic about cities like Adelaide, Brisbane and Canberra.
On the other hand, SQM Research’s MD, Louis Christopher is hopeful for Sydney’s real estate market in 2018.
Prediction by Louis Christopher
Mr. Christopher is positive and expects the rise up to 4% to 8%. But he feels that the bullish trend will take place in third and fourth quarters. He considers the present Sydney Real estate market to be overvalued by 40% and that it will require some time to settle at its actual value. We believe his prediction will turn out to be true this year.
Prediction by George Tharenou
UBS’ Chief Economist, George Tharenou also has a positive outlook. Mr. Tharenou’s predicts a rise of 0% to 3% in prices. Although lower than the estimates of Mr. Christopher, the prediction is still quite positive.
He bases his predictions on bank surveys, and says that a third part of borrowers submit false details about their incomes and assets.
With strict rules of macro-prudential policy, they won’t be able to borrow less, which will make a notable impact on Sydney’s expensive real estate market.
All things considered – the overview of what experts perceive to be happening in Sydney’s real estate market in 2018 shows that there will be a mix of rise and fall.