Sydney Housing Prices & Outlook

in LeoFinance2 months ago

Hi Everyone,

Since my last post sharing my financial goals in 2021, I thought I would share some more of the property situation in Sydney and some of my findings and continue to extend on that as time continues with the changes happening so rapidly. Buying a property was our aim for 2021 with us already close to getting two places by the end of 2020 but didn't go ahead due to a few reasons with the properties in the end. With the situation in Sydney changing so much around COVID, there are many situations that may favour us in 2021.

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The first thing is there are less overseas investors in the country. When things were going smooth sailing, we have too many overseas investors and they have the money to afford our property and pulling our prices up way too much. In some areas with popular and high ranking schools, we can see prices going up every week and the auction clearance rates are at 80% or over each week. We are seeing suburb setting high records high all the time and those who are local wanting to put their foot in doesn't even get a chance. Properties were mainly up for auction as this will yield a higher price for the seller but as a buyer you are up against other people at on the day of auction. I don't like the the uncertainty of these things so I try to avoid any auctions if there is a choice. Now with COVID and with virtually no overseas investors, we can now see way less auctions happening and a more realistic price guide all round.

Although there are less overseas investors, there are still many local buyers who would like to take this opportunity to find their homes. The only thing that probably will keep prices up is because there are less properties up for sale. We have found that those who are selling now are splitting from a relationship (in fact more than we expected) or those want to move to the countryside and sell their house in the city. Due to COVID, most workers are told to stay at home and work from home and in turn, people are thinking why not move away from this busy city life to a quieter place. The other reason is they can sell up and move to a bigger size land/better house in the country for a fraction of the price. For those who want to make big money may not want to sell now as the market is quieter than before so would off selling.

With these two above reasons, we probably still have a chance to find the home we like maybe with less choice than what we were used to but prices would be a bit more reasonable. Keeping in mind, many sellers still have the mindset of prices before COVID therefore some houses are still on the market for way too expensive than what it is worth now. With COVID continuing, we may see the housing market in Sydney a bit quieter than what it used to be. If interest rates continue to stay super low or go even lower, we probably see more buyers coming back which I will discuss later once I read up a little more on the recent reports.

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I'm pretty sure the aussie government will pull out a scheme to keep this bubble going, negative rates, subsidies for first-time buyers, longer mortgage terms, since a large part of superannuation is tied up in real estate if it even reverts slightly it would be even more underfunded than it is and people can kiss their pensions goodbye

They probably be giving more packages for buyers and lower interest rates (if it can even go lower). Don't know enough but that is what is heading towards if COVID continues.

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Hows the lockdowns going that side? Has the government started special programs to get money to businesses and people? Lower rates and more printing is only going to see the AUD weaken, are you seeing prices rise for goods like food, utilities etc?

I earn a fair amount of my monthly salary in Aussie dollars and the conversion to Rands is still good so for me, a strong dollar makes me more competitive in that market.

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I'm interested that you wrote about the trend of people moving out of the big cities to more rural areas.
How prevalent do you think this is?

I bought very cheap properties in a small north western NSW country town over a decade ago and was pleasantly surprised how much the agent thought it was worth.

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Oh, Covid is also causing a lot of nuisance in my home town. Everything is literally over priced these days with so many demands but less supplies. It's really something else over here.

Exactly it was already overpriced covid just bought down the prices slightly less but still pretty ridiculous!

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i hope that you manage and find a property affordable for you!

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thanks! fingers crossed

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 2 months ago 

I can see this accelerating. New York is hollowing out at a rapid pace. The more we work remotely the fewer reasons we'll have to subject ourselves to concrete jungles.
Treechange, seachange; five years from now, the world will be unrecognisable.
Suburbs will still be appealing, I expect; but properties that are valuable simply by proximity to a CBD, are going to get wrecked.

yah so we moved to where we are due to being close the city but now we are thinking what is the point, get bigger land, more rooms and bigger living space for the same money or less .... We probably see the outer suburbs getting more developed and crowded in no time

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I think we are sort of similar. Our prices are up which i don't expect. I think it's also
unmet demand with less supply.
I suspect too many are still expecting work from home to continue a longer time.
Those comfortable enough aren't selling.
Those wanting to get a home to have a longer work from home insurance.
That's just my logic.

Singapore is expensive all the time hahaha but yes like us I think we are in the same situation. WFH have changed us drastically.

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