February 2022 Market Update
Property prices across Sydney have risen in the past few months, with industry experts attributing this to the increase in salary levels. The market is predicted to maintain a steady price rise as we head into spring. February's median housing prices across Sydney have increased by 3% from January's figures.
It's predicted the market will continue to rise over the coming months, with experts attributing this to the current economic climate. The national Bureau of Statistics have confirmed that wages have increased by an average of 2% in the past year, and it is expected that this increase will continue over the next few months. Many economists agree that this positive news will lead to further rises in property prices both in Sydney and across Australia.
As we head out of spring, Sydney has seen a significant increase in high-end properties for sale. Experts are predicting strong growth, with a number of investors looking towards high-income suburbs with good foundations for growth, such as Pyrmont and Ultimo. While these suburbs still have growth potential, they are predicted to see prices peak again very soon.
In contrast, there is strong growth in low-income suburbs with good fundamentals. These areas are predicted to grow the most over the next few months and many have been earmarked for future development. Property experts are advising home owners to invest in these areas. February has seen an increase in the number of property sales across Sydney, with an increase of 3% from January's figures, however vendors are still facing a tough six months ahead. Experts predict that while we will continue to see growth over the next few months as we head into spring, vendors will come under increasing pressure from buyers in some areas during winter and may face a decline in prices.
The suburbs with the most movement of money in February were Hunters Hill, Rose Bay, Paddington and Vaucluse. It has been noted that despite the increase in sale numbers it will still be tough for vendors to achieve their price expectations. Buyers can still expect to negotiate hard and push prices down by up to 7% by mid-year.
Low interest rates have continued to underpin Sydney's property market growth over the past few months with experts predicting low cost of living will continue to attract residents over the coming years. Meanwhile, many sellers have praised the new four per cent stamp duty exemption announced in the last Budget.