Sydney offers one of the world’s most unique outdoor lifestyles. A genuinely cosmopolitan international city by the coast, and the house prices have always reflected that. In the previous 30 years, Sydney’s house prices have grown by 400 percent. As a result, many homeowners and investors have seen incredible ROI.
However, the COVID-19 pandemic gave Australia its first genuine financial crisis in decades, and the real estate market became incredibly uncertain in the first three quarters of 2021.
Despite that, Sydney’s house prices continue to grow and remain robust. International border closures have had a significant impact, but not as much as you’d expect. Let’s look at Sydney’s house prices in detail.
Recent price movements for houses and apartments
Sydney’s house prices have grown in the last year despite the border closures, lockdowns, economic uncertainty, and rising unemployment.
For example, various inner suburbs, such as Glebe, Elizabeth Bay, and Potts Point, have seen 4-7 percent growth in recent months. Bondi Junction — one of Sydney’s most desirable suburbs — has witnessed a gain of 3.5 percent in house value.
In addition, prices of family-suitable apartments in Sydney’s inner suburbs have also increased. That’s because people are returning to work and looking for units close to the CBD.
Sydney’s overall housing market grew by an impressive 8.2 percent in the second quarter of 2021, and the city has seen its fastest real estate boom since 1988. The current average house price in Sydney is $1.2 million. However, in recent times, house prices continue to grow by $1266 every single day.
Therefore, the last 12 months have been an excellent time to be a Sydney homeowner, especially if you own real estate in Sydney’s inner suburbs close to the CBD. Apartments in Sydney’s gorgeous Northern Beaches and Eastern Suburbs have increased too.
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Forecast price movements for houses and apartments
Of course, despite Australia’s successful containment of the COVID-19 pandemic compared to many other nations worldwide, the pandemic is far from over. Sydney has gone back into lockdown in recent months, and the economic damage remains uncertain.
That said, Sydney house prices should experience impressive double-digit growth in 2021. That results from increasing demand from families and investors for houses and family-suitable apartments in the inner suburbs to middle-ring suburbs.
Banks such as ANZ predicted 19 percent growth in 2021. Yet, so far, there has only been 15.1 percent growth in 2021. But banks still expect double-digit growth throughout the year.
In contrast, high-rise apartments in Sydney’s CBD are likely to languish in 2021. That is because investors have begun to see the pitfalls of investing in high-rise apartments, and with international borders remaining closed — tenancy occupancy rates remain low.
Conclusion
Sydney’s house prices remain robust throughout 2021. Despite ongoing economic uncertainty and problems, Sydney’s house prices continue to grow and prosper. So if you’re looking for a house or apartment in Sydney’s inner or middle-ring suburbs, you should expect house prices to rise every month.
Sydney remains an excellent place to buy real estate. Although it’s one of Australia’s most expensive places, you can expect superior returns on investment in the coming years.
However, the continuing COVID-19 crisis is making real estate — or any industry for that matter — slightly challenging to predict.
Suppose you’re searching for guidance on Sydney’s houses and apartment prices; there are experts to help you understand the current House prices in Sydney.
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