Sydney’s housing and unit markets have tumbled from their peaks and are starting to decline, according to Herron Todd White’s National Property Clocks for December 2017.
As Sydney moves further into 2018, the property market will continue to decline, placing it on a similar footing with Brisbane, Canberra, and Perth.
“For greater Sydney, 2017 was a year that saw continued growth but at a lower rate than in previous years,” the firm said in its December 2017 Residential Report. “Recent months have shown signs of slowing even further. This was widely anticipated and our prediction of slower growth as the year progressed proved correct.”
Dwelling values first began dropping in Sydney in September, falling 0.1% lower during that month, according to CoreLogic. By November, dwelling values had dropped by 0.7% to be 1.3% below the market peak.
At the start of this year, demand outstripped supply, which kept the wider residential market buoyant. However, prices and demand have begun to soften in recent months.
“In more recent months we have seen selling periods extend closer to longer term averages and prices begin to stabilise and even fall in some areas,” the report said. “As the market moves from a seller’s market to a buyer’s market, the instances of sales results well above asking prices are becoming far less frequent.”
Nevertheless, local agents note that quality properties are still highly desired and are continuing to record strong results.
“They are just taking slightly longer to sell with a reduction in the number of interested buyers compared to previous years,” the report said.