MARKET UPDATE – October 23
Since the rollercoaster ride of 2022, the Sydney property market has staged an impressive comeback, with an annualised surge of 7.3%. Even as we await the Reserve Bank of Australia's decision on interest rates the outlook for Eastern Suburbs properties continues to shine brightly.
The Housing Renaissance
Several compelling factors are propelling this remarkable resurgence. A tight listings market has sparked fierce competition among buyers vying for a limited supply of properties. Coupled with a steady influx of immigrants, which is projected to persist into 2024, these dynamics promise sustained price growth. It's worth noting that growth is slowing in the upper echelons of the Eastern Suburbs. House prices within the top 25% of Sydney's real estate spectrum have begun to tap the brakes. Over the past three months, the premium segment of the Sydney housing market posted a 2.2% gain, marking its slowest increase since February and less than half the robust 5.7% quarterly growth recorded in the preceding quarter, according to CoreLogic.
Pricing Waves and Quality Craves
Within the upper quartile of the Eastern Suburbs-North, encompassing prestigious locales like Dover Heights, Rose Bay, and Vaucluse, house prices have moderated from an impressive 7.9% surge in the June quarter to a more modest 0.6% increase in the past three months. These premium markets often serve as bellwethers for the broader real estate landscape, and while there may be a slowdown, we attribute this to affordability concerns which will dissipate in 2024.
In Sydney's Eastern Suburbs, from Bondi Junction to Bellevue Hill, discerning buyers are willing to pay a premium for well-situated, high-quality homes and apartments. Their pursuit of excellence is reflected in the exceptional clearance rates and swift property turnovers seen in these coveted areas.
Rate Risks Recede
With the risk of interest rate hikes diminishing, the future trajectory of pricing growth will be chiefly determined by supply and demand dynamics. Presently, the Reserve Bank of Australia has paused the cash rate at 4.10%, a significant departure from the emergency-level 0.1% rates borrowers were accustomed to. Most financial institutions expect no further rate hikes, with the possibility of rate cuts in 2024.
If you're contemplating selling your property, rest assured that you're operating within a thriving market, having rebounded from its recent lows. As property transactions naturally slow down during the holiday season, positioning yourself to capitalise on the anticipated price increases in 2024 is the strategic move.
For a no-obligation appraisal and a discussion on how we can assist you in securing the best value for your property, please reach out to us at john@willsproperty.com.au.
Your future in dealing in the thriving Sydney Eastern Suburbs real estate market awaits!