Sydney has long been a firm favourite for those residing in Australia. Attracting people from all over the world with its thriving economy, outstanding beaches and growing cultural scene, it’s no surprise that Sydney is the largest city in Australia, holding a population of roughly 5.4 million. However, with all its beauty and riches, Sydney also carries the complexities of being one of the most expensive areas to buy. Therefore, choosing the right time to make that purchase is crucial.
For those looking to get on the proverbial “property ladder”, this article breaks down the current trends and opportunities of Sydney’s housing market to give you an insight on why now may be the perfect time to take that leap and relocate to Sydney.
Are House Prices Falling in Sydney?
After a serious trough in early 2023, according to Metropole, the real estate market in Sydney has substantially recovered with an 11.6% increase in property worth. This continual growth had been consistent, pushing prices higher as demand swells and rental markets soar.
However, as all good (or bad) things must come to an end, many predict that the tides are finally beginning to turn on the market. Over the past few months we began to see Sydney house prices flatten and September saw a rise of just 0.3%. Now for the first time in almost two years, Sydney has seen its first property value decline, with house pricing falling by 0.1% in November (AFR). The music to many people’s ears, this gentle decline in property value makes it the perfect opportunity for potential first-time buyers to swoop in.
What is affecting this change?
Many factors contribute to the rise and fall of housing prices and although the slight increase in affordability is a big win for some, the reasons behind this outcome are slightly more complicated.
The Cost of Living in Sydney 2024
It will come as no surprise to anyone that the cost of living in Sydney has increased over the last year. Along with food prices and transport, the affordability of property has become increasingly unattainable over recent years and is a global concern that many are faced with post-pandemic. What this evidently meant for Sydney was that it was only a matter of time before house pricing became so unaffordable that demand would begin to slow, as people are pushed to venture away from the city and into more affordable areas.
Supply and Demand
Supply and demand have had a huge impact on Sydney’s housing market over the last few years with new housing developments not keeping up with the ever-growing population in the city . Problems such as a lack of space and fewer construction workers had put construction developments on hold (Forbes), driving the property prices up in recent years. However, properties available are finally starting to increase with July 2024 showing an almost complete balance in the ratio of new listings to modelled sales, according to CoreLogic. This new balance ultimately gives sellers more competition on the market, forcing exceptionally high house prices down.
Interest Rates
Finally, interest rates have been at 4.35% over the past few years as determined by the Reserve Bank of Australia (RBA), a number that many hoped would decrease this September. However, experts have forecasted that a decrease will not be seen until the new year. Although higher interest rates are often a deterrent for buying, it can also be seen that with fewer people able to make that big financial commitment, there is also less competition for buyers who can. Not only does this mean there are more houses on the market to pick for but also that the initial investment that needs to be made is lower.
So, where are the best suburbs to buy in Sydney in 2024?
Now that Sydney property prices are finally starting to decline in value, your dream of owning a home in the NSW capital may be one step closer to becoming reality. For those looking to start a life in one of Sydney’s charming areas then what you’ll probably be wondering is where to begin your search. Finding the right suburb in Sydney for you is critical to a successful move and with so many wonderful areas offering different opportunities, this can be difficult.
If you’re looking for that idyllic beach lifestyle then, Sydney’s Northern Beaches and Eastern suburbs are some of the most popular due to their proximity to the CBD and access to beautiful beaches.
However, for those looking for a home they can invest in then Sydney’s inner West has seen a large increase in sales due to the area’s affordability and proximity to the CBD. In fact, the inner southwest, including St George and Canterbury-Bankstown regions, had the biggest annual growth (August 2023 - August 2024) at about 10 per cent (REA). Whilst this may have driven up prices, these regions still sit at a much more reasonable cost than that of CBD and Eastern Suburbs.
One of Sydney’s greatest assets is its diverse landscape that offers many different lifestyle options, so it’s important to do your research before committing to any move.
A Stress-Free Move
Finding your first or forever home can be stressful and with everything to consider it’s important to do what you can to make the process simpler for yourself. Whether you’re moving interstate to Sydney for the first time or are just moving house locally, look to removalists Sydney to help navigate you through the process. Taking the weight off your shoulders, professional removalists can transport you to your new home in an efficient and stress-free manner. In fact, the best removalist in Sydney can cover every aspect of the moving house process for you including packing and unpacking your belongings and reassembling furniture. So, all you have to do is find your future home in Sydney and let professional removalists take care of the rest.
Final Thoughts
Whilst there is no such thing as the “perfect time” to take the plunge and move, with housing prices declining and interest rates set to come down, now may be as good a time as any. Whatever your ideal move looks like in Sydney, trust that Holloway Removals & Storage have the local expertise and ability to create a tailored removals process to suit your every need.
