END OF 2021 MARKET UPDATE
It's that time of year when the top real estate agents and property experts start posting their trends for the year ahead. It can be overwhelming to go through so much information, but if you listen to what they have to say you should be able to get a pretty good idea of what is on the market and how it will change over the next few years.
- The location of the suburbs you buy in is more important than the suburb itself. Recent analysis showed that houses priced $1m and above with a good location sell much quicker and for a higher price than houses in bad locations, even if they have a higher selling price. This could be why your home hasn't sold yet, despite you putting it up for sale at a reasonable price.
- Sydney has been named by RE/MAX as the best city to live in Australia, in terms of amenities, cost of living, lifestyle factors and safety. It's also one of Australia's most desirable places to live and this will continue into 2021.
- The suburbs which will have the biggest price growth over the next three years are: Ryde, Neutral Bay, Mosman, Hunters Hill and North Ryde.
- Despite a lot of new developments across Sydney, it seems that prices have stopped rising in some suburbs (such as remaining vacant properties and units). This is likely due to supply being low, especially in newly constructed apartment buildings. It's also likely that demand has decreased due to the interest rates being lower (currently at 2.5%).
- Buying a property in an area with a high amenity score is one way to improve the value of your home in the long run. Having good schools nearby and access to transportation services is really important. The suburbs with the highest amenity scores are: Hunters Hill, Mosman, Neutral Bay and Darling Point.
- It's not just the suburbs that have good amenities — properties in these areas have better amenities than others. Properties in Ryde and Mosman had the best overall ratings of their respective suburbs while those in North Ryde had the lowest. There are a lot of more expensive properties in those suburbs that still had a good rating though.
- The average house price for Sydney has reached $1,074,000 (up 16% from last year). "Sydney remains one of Australia's strongest property markets", said Andrew Wilson, chief executive officer of Ray White Australia. "Sydney's dynamic economy, diverse and abundant housing stock, do-it-yourself lifestyle and proximity to the water have made Sydney the world's most livable city for five consecutive years."
All of this information is really useful if you're looking to sell your house in Sydney soon. It shows that the best time to sell will be from March to June of this year, given that a lot of construction will be taking place at that time.
It's also good to know that you're property is worth $1m (or more), given that it could help your ability to get a loan. Online lenders can be very strict about the selling price of your home, but if you've taken the time to research it, then it could help you get a better loan from someone else.
It's also worth knowing that there are a lot of properties in the $1m and above range that have a good amenity score and are in good locations. This could be important if you're trying to look for a really good property to live in.
It would also be important to know which suburbs have the best average prices, since these will eventually be the cheapest places to buy in Sydney, even though they're already pretty expensive right now.
The information presented should help you to get a good idea of how this year's property market is going to change. It won't necessarily mean that you're going to be able to sell or buy a better property in the next few months, but it will give you some idea of what's likely if you plan well.
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