It’s no secret that the Sydney property market has enjoyed some impressive growth in the last few years. The amount of residential construction has been unprecedented with cranes visible across most of the Sydney skyline. Low interest rates, the loosening of lending and incentives for first home buyers allowed for many people to enter the property market. However, banks and other financial institutions have tightened their lending and as such the property market has had a correction.
With a decline in property prices and a large amount of stock available, what does 2019 hold for the Sydney property market and how can you make the most of it?
Sydney House Prices
According to some experts, Sydney will continue to see a general downturn in median house prices across 2019. It is predicted that prices will fall by 2 per cent over the next financial year before slowly rising again. The expectation is that Sydney prices will then rise by 3 per cent before the end of 2021, which is the smallest increase expected across Australia’s capitals.
Sydney Unit Prices
Experts are also predicting a decline in unit values. After noting a 1.7 per cent drop in unit prices in 2018, NAB have predicted a further 2.2 per cent decline in 2019. This decline in prices is a correction of the market which will make the rest of 2018 and 2019 a buyer’s market overall. This creates a number of opportunities that investors should take advantage of before prices eventually rise again.
Where Should You Invest In Sydney Property In 2019?
According to Australian Property Investor, interest rates will rise over the next few years and investors will face loans moving from interest only to principal and interest. It also suggests that:
“Whether you’re an existing investor or new to property, what you do in 2018 will form the backdrop of your portfolio for the next decade. You need to be primed financially to take advantage of properties that may come on to the market where others have been forced to sell down. Of particular note will be dwellings of owner-occupier quality, which can always command higher prices on the market due to their unique composition.”
realestate.com.au suggests that Western Sydney is still a hotspot for property investment thanks to infrastructure developments like Badgerys Creek Airport and improved rail links. The construction and operation of Badgerys Creek Airpot is set to support 28,000 jobs by 2031 and significantly boost the local economy making Western Sydney, in particular Liverpool a sound investment area. Real Estate.com.au names Cranebrook as a particularly good area to invest due to a good percentage of owner occupiers and a limited supply of stock.
Another area which is always a strong investment is the Eastern Suburbs. Traditionally a popular location with locals and migrants alike, it offers endless opportunities, particularly for investors looking to buy-to-let. And with new transport links and luxury developments by Crown Group such as Mastery, Waterfall, Infinity and Eastlakes Live across the area, it’s also a great place to invest in property overall.
According to a news report earlier this year, the best place to look for apartments for sale in Sydney is to the south of the city. Thanks to a high demand for rental units, a tight supply of properties and extremely low vacancy rates, this is the best place to own apartments for rent in Sydney.
For information on Crown Group, or to see our catalogue of apartments available to buy or rent across Sydney, visit our website or contact our local office for a chat with our friendly team of experts.