Sydney’s property market is buzzing with activity as house prices have surged by over 20% in several suburbs. Discover how you can benefit from this surge, with prices up in key areas and new eviction rules in place. Here’s a comprehensive look at the latest trends.
Significant Price Increases Across Suburbs
In the past year, house prices in Burwood have jumped over 30%, reaching a median of nearly $3.16 million. Glebe and Fairlight also saw significant increases, with median prices hitting $2.7 million and $3.66 million, respectively. Other notable suburbs with at least 20% growth include Collaroy Plateau, Bondi Junction, Neutral Bay, and Chatswood.
More affordable neighborhoods like Bexley (up 24% to $1.55 million) and North Parramatta (up 20% to $1.33 million) are also attracting buyers.
New Eviction Rules
The Minns government’s proposed eviction rule will make it illegal for landlords to terminate leases without reasonable grounds. This includes non-payment of rent, property damage, or significant repairs and renovations. Tenants can also be evicted if the property is sold as vacant.
Interest Rate Speculations
Ahead of the Reserve Bank’s policy meeting, speculation about another interest rate rise is high. Despite rising bad debts, Australian banks are trading at high valuations. The mortgage serviceability buffer requires banks to assess borrowers at higher rates, impacting household budgets.
Market Performance and Predictions
Recent figures show a slight increase in delinquency rates, with 0.81% of home borrowers at least 30 days behind on repayments. Each additional rate rise could increase delinquency rates, affecting thousands of borrowers.
However, interest rate trends are now leaning towards a potential cut rather than a rise, after inflation came in slightly above forecasts in June. Trimmed mean inflation eased to 3.9% in June from 4% in March, leading to revised interest rate expectations.
Home Values and Affordability
Home values in Sydney have seen modest growth, with a 0.3% increase in July. However, high interest rates and stretched affordability have slowed the market. Buyers can’t borrow as much as before, but sellers continue with their campaigns. Sydney’s median home value is now 1.1% higher than three months ago, compared to a 5% increase last year.
Other cities have experienced faster property market growth, with Perth and Brisbane showing significant gains. Melbourne’s home values fell 0.9% over the past three months, likely to be overtaken by Adelaide soon.
Apartments vs. Houses
CoreLogic data shows a growing price gap between houses and apartments, driven by declining borrowing capacity and recent house price gains. Apartments are becoming more appealing to investors and first-home buyers due to worsening affordability in the housing market.
Expert Advice
Given these trends, now might be a strategic time to consider apartments if you’re a first-time buyer or investor. For sellers, understanding the nuances of your specific suburb can help tailor your marketing strategy to achieve the best results.
Stay informed with these key trends and updates as the Sydney property market continues to evolve.