The question that anyone looking to buy or sell property has right now is what is going to come of the Sydney property market over the Spring/Summer 20/21 holiday period?
In our October property market update, we recapped on the last 6 months and compared that performance to some predictions we made on the tail end of the pandemic back in May, which you can read here.
In the last 6 months, the property market didn’t blow up as much as people thought it would. So the key question is, what is going to happen between NOW and early next year?
Whilst we saw an initial drop in prices of about 10% over the initial lockdown period, property in Sydney has shown itself to be extremely resilient. Although, apartments have shown to be a little less resilient – this is mainly due to the fact that they are the most popular type of investment property.
Going into the holiday season, investors with a home mortgage or worries about potential debt, may have to put their investment properties up on the market. A quick look at Domain.com or RealEstate.com, and you’ll see that the most abundant properties for sale right now are 1 and 2 bedroom apartments.
So, what’s next? It’s likely that we will go into the holidays with the property market still looking quite resilient, with auction clearance rates staying consistently around 60%. With interest rates extremely low, and especially given this week’s historic low interest rate cut by the RBA from 0.25% to 0.1, look out for people coming back from the holidays, ready to look for new investment properties.
From February to April, we should expect to see a small spike in the Sydney Property Market. After that, prices should steadily increase by about 15%!