Current Real Estate Trends and Predictions 2024-2025
Examining Sydney's property markets reveals a tumultuous journey in recent years, culminating in a stabilization by 2024. Here are the key trends and predictions shaping the real estate landscape:
Market Stability: After experiencing significant fluctuations, the real estate market in Sydney has found its footing in 2024, offering a more predictable environment for buyers and investors.
Sustainable Development: There's a growing emphasis on sustainable and eco-friendly construction, with new developments prioritizing energy efficiency and green spaces.
Technological Integration: Smart home technologies are becoming standard in new properties, enhancing convenience and security for homeowners.
Urbanization: Continued urbanization is driving demand for high-density housing and mixed-use developments in central locations.
Affordability Initiatives: Government policies aimed at improving housing affordability are expected to influence market dynamics, potentially making homeownership more accessible for first-time buyers.
Remote Work Influence: The rise of remote work has reshaped residential preferences, with more people seeking properties that offer dedicated home office spaces and proximity to recreational amenities.
EXPECTED GROWTH RATE
The major banks are forecasting steady price growth for Sydney properties in 2024 and 2025:
- Westpac: 6.0% growth in 2024, 4.0% in 2025
- NAB: 4.7% growth in 2024, 3.7% in 2025
- ANZ: 4-5% growth in 2024, 7.0% in 2025
- CBA: 4.0% growth in 2024
This growth is expected to be driven by strong demand from homebuyers and investors, as well as a limited supply of properties on the market.
AFFORDABILITY CHALLENGES
Despite the predicted price growth, affordability remains a significant challenge in Sydney. As of April 2024, the median price for all dwellings in Sydney was $1,145,931, with an 8.7% annual increase[1]. More than 70% of Sydney suburbs now have a median house price above $1 million.
RESILIENT MARKET REGARDLESS OF CIRCUMSTANCES
Sydney's property market has proven resilient despite the Reserve Bank of Australia's (RBA) interest rate hikes, which have increased the cost of borrowing for homebuyers and owners. The RBA's cash rate currently stands at 4.35%, a significant increase from the emergency-level 0.1% rate in May 2022
THE FUTURE
According to the news that was released on realestate.com.au, it is predicted through the use of AI that these 25 suburbs will outperform the Sydney market in the next six months: https://www.realestate.com.au/news/ai-predicts-sydney-suburbs-due-to-outperform-market-in-6-months/
- Heartland Sydney: Springwood, Minto, Winmalee, Liverpool, Mount Pritchard
- Suburban Sydney: Bossley Park, Green Valley, Bass Hill, Georges Hall, Warrimoo
- Rising Sydney: Cecil Hills, Bankstown, Picnic Point, Gymea, Kurnell
- Professional Sydney: Collaroy Plateau, Allambie Heights, Forestville, Killarney Heights, Belrose
- Affluent Sydney: Middle Dural, Curl Curl, North Manly, Manly Vale, Narrabeen
These suburbs are expected to see price growth of around 4-5% in the next six months, driven by factors such as affordability and buyer demand.
Overall, Sydney's real estate market is expected to continue its steady recovery in 2024, with prices rising at a sustainable pace. However, affordability remains a significant challenge, and buyers and investors should carefully consider their options and seek professional advice before making any decisions!
