September Property Market Update
The September Property Market Update is here, providing you with updates on the property market in Sydney in relation to capital growth, rental yields and rental prices. You'll learn about what to expect when renting or buying a property and what areas you should target to maximise your investment.
September is a very quiet month when it comes to housing transactions. This is mainly due to school children not being back in class and a lack of interest from investors and owner-occupiers who want to avoid servicing their loans for a couple of months. As a result, this data can be skewed by factors such as auctions where people have been unable to settle on time. In addition, there are fewer sales from late-comers who buy towards the end of the financial year at a lower price than they would have otherwise paid without tax considerations.
The seller market in Sydney is still very active and it appears that there is not a great deal of upward pressure on prices. This means that limited inventory will likely continue for September for the foreseeable future, which will again emphasise the importance of correctly assessing your finances and budgeting before making an offer.
For buyers, the biggest consideration should be to ensure that the property they want to buy has enough space for everyone to move in before making an offer. Property investors should understand that rentals tend to jump about eight per cent above or below previous years depending upon how fast or slow the market is moving at times of year when school holiday periods increase demand, such as Easter and school holidays in winter. If you need help, then get in touch with me for professional advice. This is a great time to buy and sell properties quickly, however always make sure that you have considered every aspect of the budget including stamp duty before putting in an offer.
The results from the September auction clearance rate was 80.7 per cent. This is a slight increase from August and puts us on track for a clearance rate of 80 to 82 per cent for the year as a whole.
The median house price in Sydney fell by 1.8 per cent over the month to $880,000 and annual growth has now slowed to 3.1 per cent, its weakest result since November 2017. There were 7,169 residential properties that changed hands during September which is slightly up from August, although well down on the same time last year when we saw 8,608 sales recorded.
The average rental cost for a three-bedroom property in Sydney over the month was $1,660 per month, down 5.2 per cent on August and now at its lowest since November 2012. The median three-bedroom rental is now $1,500 per month, up 4.2 per cent on August but now at its lowest point since May 2013.
The median apartment price in Sydney also fell by 1.8 per cent over the month to $864,000 and annual growth has slowed to 3 per cent, its slowest result since late 2017. The NSW median apartment price is now at its lowest point since March 2014.
Half of the top-ten suburbs for rental returns in Sydney last month are located in or near the city centre while six are located in the Greater Western area. Five are also located in the Inner West which means that investors have to consider these areas when deciding whether to invest further afield. If you're looking for an investment property then get in touch with me today to find out more about these markets and how you can maximise your investment.