The Sydney property market enjoyed ten years of steady and unobstructed growth; however, 2018 saw a slight softening of the market. The overall consensus is that 2019 will see much of the same. Therefore, what is the general forecast for the 2019 Sydney property market?
The period of steady decline in the Sydney property market saw:
- Credit restrictions
- Less foreign investment
- Increasing bank funding costs
- Expensive housing
- Oversupply of apartment units in some places
The median house price in June 2018 was $1,103,50, a 7.6% decline since June 2017.
Outer and Western suburbs experienced a 2.8% drop, in addition to this, vacancy rates increased from 1.8% to 2.5 % in June 2018. There was a 7.4 % decline for Sydney dwellings by October 2018.
Property experts SQM Research have predicted an underwhelming softening of the Sydney property market in 2019 and beyond. An overall property pricing crash is not expected. They highlight a steady national economy, stable population growth and low unemployment to indicate that a significant property pricing crash is not on the cards for Sydney.
QBE’S Australian Housing Outlook has predicted a fall in prices between 2019 and 2020. Their predictions indicate that 2019 should see an 11 percent decline in prices with the median prices dropping -5.4 % between 2019 and 2020.
CoreLogic highlights various factors that could affect overall property prices in Sydney in 2019:
-9% decline if there is no cash rate change, Labor government May 2019 and a slow economy
-11% to -6% drop if 0.20% interest increase and Labor government
-6 % drop to -3 % drop if cash rate stays the same, slow economy and Liberals stay in power in the upcoming election
Property analysts have predicted that Labor’s planned repeal of negative gearing policy could harm property prices.
Best Sydney Suburbs To Invest in 2019
Dubbed the next Silicon Valley, Eveleigh is a trendy inner-city suburb with lots of investment potential. Up and coming tech innovation projects will lead to new job creation and startups setting up shop in the area. With brand new apartment projects, art center and hip cafes, Eveleigh is the perfect suburb for young families, professionals, and creative communities alike.
Waterloo is set to become a hot zone for property investors, with brand new apartment developments, local parks, art galleries, trendy shops, cafes and restaurants, a possible Metro line could be in the pipeline. Waterloo is certainly looking like one of the suburbs to watch in 2019.
Brookvale offers relatively affordable housing, close to beaches. There are plans to transform Brookvale into a bustling place to be, with new bars, cafes and new residential developments on the cards. The transport system is efficient, and things are looking up for the Brookvale area.
Baulkham Hills is a family-focused suburb with lots of investor potential. 20% of the suburb is rented, which is excellent news for potential property investors. The brand new Sydney Metro Northwest rail line which is due to open in 2020 will add value to the up and coming suburb, making it one to watch in 2019 and beyond.
The general consensus for the 2019 Sydney property market is that property buyers will most likely have more buying power with softening of the market set to continue, there is no indication that there will be a total property price crash in Sydney. There is still lots of investment potential in the suburbs with continued infrastructure development, 2019 is set to experience a steady price decline overall, but nothing too significant.