Sydney’s property values have reached their highest level since 2017, according to research by CoreLogic.
The city previously peaked in July 2017, but had undergone serious decline, bottoming in May 2019, when values were 15.3% lower than the high watermark.
There was an almost immediate rebound, which could have seen prices reach the levels that they hit today a year ago, but the COVID-19 pandemic put a hard pause on the market. Now, that it can be seen as just that: a pause, rather than a genuine downturn.
The growth in late 2020 and especially in early 2021 has been breaking records across the board: from home loans to house auctions, the December 2020 quarter saw graph lines steeple like never before.
Many analysts had issued caveats that the market was still not where it was in 2017, and that the house price boom was merely recovering to where it had been, but, as of today, it has been surpassed.
“I'm not surprised a new watermark has been created,” said Grant Foley of Grant Foley Property, based in Sydney’s Inner West. “Being on the ground at open homes and auctions, I can see heat in the market. Buyer competition is as high as I’ve seen it. First Home Buyers, upgraders and downsizers are all active, and now investors are coming back to the market. The depth and composition of the buyer pool is extremely strong. “
“Only last night, I missed out on a property for my clients that was sold at auction, with the eventual sell price pushing 30% over the auction price guide. The market for well-located inner Sydney houses with good land content has been very strong for at least 6 months.”
“Units have been a drag on the total Sydney result, but now units with an element of uniqueness and scarcity are also starting to trade with strong buyer competition. The high density new build unit market will likely continue to struggle for some time.”