Sydney Property Market Review | The Researcher

Sydney Property Market Review

As the dust settles moving into the new year, we take a look into the high’s and lows of the Sydney Property Market for 2018.

It has been a dramatic year for the Australian Real Estate market across the board, with Sydney suffering the largest decline after a stellar 2017.

Although in some areas prices have dropped at the fastest rate since the GFC, it’s not all doom and gloom with other suburbs weathering the storm far more favourably. The entire national market has felt the repercussions of the financial fallout, which has multiplied the effects on regions already suffering from other factors.

A far cry from 2017’s mid year peak we are now seeing Sydney hosting a declining market with an 8.1 percent drop on dwelling values from January to November according to the latest data from Corelogic.

On the unscathed side, as generally expected the prestigious eastern suburbs came out mostly unhurt, outperforming other suburbs with a number of big ticket sales transacting. The cities inner-west has shown a larger decline by contrast with a number of sales showing a clear loss on valuations from the previous year.

Whilst the numbers are drastic in comparison to previous years, many are wary that the current downturn is a healthy correction that is likely to level out.

Perhaps one of the greatest calls for immediate alarm has come from the Western Suburbs with the weakening of the wider market.

As a natural result we are beginning to see settlement values not meeting off-the-plan purchase price putting increased stress on lenders.

Tightening credit conditions as a result of the royal commission have contributed to the drop in combination with the regulatory tightening of investor lending already put in place at the beginning of the year.

Whilst the numbers are drastic in comparison to previous years, many are wary that the current downturn is a healthy correction that is likely to level out.

Timothy York