2021 has been a stellar year for the Sydney property market.
Since the start of the year, the median property price has lifted 18.2%, according to CoreLogic – one of the highest rates of growth it has ever experienced. The median house price has lifted even more. Since 1 January, homeowners have seen the value of their assets rise by an incredible 20.9%.
This means, for example, that a home worth $5 million at the start of the year should now be worth around $6.045 million.
Unsurprisingly, this is having an impact on the median dwelling value here in Darling Point. Domain data has the median three-bedroom apartment value in our suburb at $4.11 million, thanks to some recent record sales. Meanwhile, Realestate.com.au has recorded the median value for all apartments sold in the past 12 months at $2.075 million.
The impact of Sydney’s lockdown
Prior to the Sydney lockdown, our local property market was doing very well. Buyers were out in force, which meant that enquiries were up, open houses were busy and auctions were frenetic. The only thing missing was stock. There were few property listings compared to the number of buyers in the market – in fact, it’s hard to remember a time when demand so clearly outstripped supply. This helped foster extreme competition, pushing prices even higher.
As a result, in the weeks leading up to lockdown, there have been many successful sales campaigns, especially in prestigious apartment complexes. These included:
- 1/44 New Beach Road, Darling Point – $11,200,000
- 4/45 New Beach Road, Darling Point – $13,000,000
- 1/21 Yarranabbe Road, Darling Point – $10,095,000
- 3/22 Yarranabbe Road, Darling Point – $16,800,000
- 6 Goomerah Crescent, Darling Point – circa $16,000,000
The lockdown market
When we went into lockdown the selling environment obviously changed in many ways. We could no longer hold auctions or take groups of people through properties. Instead, we’ve been conducting inspections one-on-one. But, while this has reduced the number of people who are inspecting properties, it hasn’t really taken the interest out of the market in any significant way.
If anything, it has made buyers more decisive. There is even less stock on the market right now, as some would-be sellers pulled their properties from the market or decided not to go ahead with a campaign.
Just researching the market?
At the same time, there are also a lot of buyers really keen to secure a property this year, who haven’t been able to, despite their best efforts. A lot of people also have more time to devote to their property search and they don’t want to still be looking when lockdown eventually lifts. When these motivated buyers see a property that meets their needs, they’re willing to make a strong offer to take it off the market.
This means property prices are still going up. The median Sydney price lifted 2.0% in July, while Sydney was in lockdown. This came on the back of a 2.6% rise over June.
So we’ve seen some strong sales over this period too. For instance, 2/73 New Beach Road, Darling Point, a two-bedroom, two bathroom apartment in the Pasadena complex, which boasted no fewer than four parking spaces.
What happens next?
Given the lack of available properties right now compared to the number of buyers in the market, there is a clear imbalance between supply and demand. So if you’re thinking of selling, this looks like a very good time to do it. It’s also likely that we’ll see a lot more properties come onto the market when lockdown lifts, meaning buyers will have more from which to choose if you do hold off.
That said, if buyers see something they like on the market right now, they shouldn’t hesitate to put their best foot forward. Around Australia, each lockdown to date has ended with a surge in real estate activity, sending property prices even higher. In the long run, you’re almost always better off securing somewhere you want to live rather than thinking about trying to ‘time the market’.
If you’d like to know more about our local property market, or if you need help buying or selling a home, get in touch.