According to a report from Oxford Economics Australia, unit prices in Sydney are expected to grow by 23.4%, and property prices are predicted to increase by 15.8%. This would result in the median unit value in Sydney surpassing $1 million, reaching $1,029,869, and the median property price exceeding $1.5 million, reaching $1,621,930.
The report indicates that the total number of listed properties in Melbourne and Sydney has increased, a trend expected to continue in the coming quarters, thereby slowing down the growth of property prices. However, property prices in Perth, Brisbane, and Adelaide are expected to rise due to tailwinds and the push from low levels of advertised listings.
The report also predicts that the interest rate cuts implemented starting at the end of 2024 will drive an accelerated growth in property prices. Relatively affordable unit prices will support stronger growth in the short term. The median prices for houses and units in Sydney are expected to grow by 5.9% and 8.3%, respectively.
It's worth noting that measures taken by the Albanese government, such as increasing foreign buyer taxes and raising vacancy fees for properties owned by overseas investors, are not expected to have a significant impact on the Sydney real estate market. These measures are limited to specific postal code areas in Sydney, many of which belong to the high-end market.
The report also points out that in recent months, there has been some differentiation in the growth of Sydney property prices. The total number of listed properties in Melbourne and Sydney has seen an increase, a trend expected to continue in the coming quarters, thereby slowing down the growth of property prices.
Although the rate of increase in Sydney property prices may vary due to various factors, including an increase in supply and government measures for real estate regulation, overall, based on data and reports, Sydney property prices are expected to continue growing in the next few years, supported by population growth and the interest rate environment.
It is important to note that the real estate market is dynamic, with many uncertainties. Investors and buyers should carefully consider market conditions, their financial situation, and risk tolerance when making decisions and seek professional advice for making informed investment decisions.
Concerns have been raised about the potential impact of the increase in Sydney property prices on the cost of living for residents. However, it is essential to note that Sydney property prices are influenced not only by domestic market dynamics but also by the global economic situation.
Australia is a highly internationalized country, attracting a significant number of international students and investors from around the world. Therefore, the economic policies of the Australian government and its relationships with other countries will also impact Sydney's property prices.
Furthermore, Sydney is not the only economically developed city in Australia; other cities also offer superior economic and living environments. Therefore, for those who are concerned about Sydney property prices, they may also consider real estate investment opportunities in other cities.
