Sydney home values on track for 22% growth this year
Despite recent lockdowns, Sydney’s home prices continue to strengthen ahead of expectations, fuelled by low interest rates and strong income support. Demand momentum has remained strong throughout 2021, and confidence in the market has consistently improved in recent months, particularly in lifestyle-focused locations. As a result, Sydney’s median price hit $1.41 million at the end of June. Driven by this stronger performance, NAB has just increased its 2021 full year forecast for Sydney home prices by over 7% to 21.6%, well ahead of the 18.5% increase expected for Australian home prices. Sydney clearly remains one of the strongest performing property markets in Australia. It’s noteworthy that rising housing prices are now having a bigger positive economic impact than the government stimulus packages.
Interestingly, the NAB survey also highlighted that more than half of first-time buyers are now more willing to buy new builds, a significant increase versus two years ago. That’s a particularly positive trend for Sydney’s house and land package market which explains the strong growth in demand being seen across the new build market.
Landen’s Director Rashed Panabig remains positive on Sydney’s property market outlook: ‘Sydney remains a high demand city, particularly in areas with strong lifestyle advantages like North West Sydney. With interest rates likely to remain low for longer, and continued momentum in demand growth, we expect the Sydney property market to remain a strong performer in the coming years.’
Why Sydney home prices continue to ignore COVID developments
After Sydney’s recent nine-week lockdown period you’d be forgiven for thinking the property market was due a...