Insights, News, Results
Prestige Market Report – Reflecting on 2016 and forecasts for this year
2016 was a very strong year for local real estate. For the Sydney property market as a whole there was 18.4% growth rate1. We haven’t seen annual growth rates quite like this since the property boom of 2002. This has been a great boost for the hip pockets of Sydney home owners.
Factors that contributed to this growth in Sydney include rising demand versus short supply (especially in the very top end of the market), a strong economy, population growth, overseas investment & appealing Sydney lifestyle.
We found that vendors were achieving full market value for their properties with less discounting regardless of time spent on the market.
Forecasts for 2017
The monthly CoreLogic Hedonic Home Value Index reported that growth conditions had accelerated for Sydney dwellings recording a 2.6% growth for the month of February and 4.5% growth for the quarter. This shows a continual growth pattern for Sydney. This is likely to continue throughout the year as macro and micro factors that drove growth last year are unlikely to change in the short term.
At the premium end of the market we may see fewer transactions as business is more settled and transaction costs remain high, but the transactions we do see are likely to achieve full market value. With regards to Chinese investment, even with the government tax reforms, we don’t feel this will dampen demand. The top end of the Sydney market remains a niche market and with over 500 Chinese billionaires looking to invest overseas, demand is still likely to exceed supply.
For the time being, Sydney is still a very attractive place to buy in and to invest.
Brad Pillinger, Pillinger Property
- CoreLogic RP Data, Annual capital city growth trend reaches new high, 1 March 2017
- CoreLogic RP Data, Point Piper Suburbs Statistic Report 1 March 2017