Sydney Mounts Strong Recovery, But Revival Is Not Evenly Spread
This is the strongest Sydney market we have recorded in the five years we have been conducting our quarterly sales surveys. Greater Sydney has 67 suburbs with rising buyer demand, compared with 18 six months ago.
Our Winter 2019 survey pinpointed the bottom of the Sydney trough and this Autumn 2020 survey provides strong evidence of the market revival, showing just how much has changed since the middle of 2019. The number of suburbs classified as declining markets has dropped from 66 suburbs six months ago to 12.
There is evidence that prices are responding to the overall uplift in buyer demand, but to date few locations have returned to the pre-downturn levels of pricing in 2018. Only 8% of suburbs have recorded annual growth in their median house prices, while 15% of suburbs have had year-on-year growth in their median unit prices.
But many suburbs have recorded price growth in the most recent quarter, while remaining down in annual terms. This reflects the emphatic revival in many Sydney markets towards the end of 2019.
The suburbs with growing sales activity are spread across 22 municipalities in the Greater Sydney area, but it is clear that the greatest uplift is being felt at the upper end of the market and that the revival is not evenly distributed.
And there are still 12 suburbs in the Greater Sydney Area which we classify as danger markets. These are all locations where apartments predominate, with vacancies high and no sign yet of recovery in sales.
So the Sydney story heading into 2020 is one of recovery - but buyers need to be aware that this recovery is not universal across all areas and do their research.
Out Top 5 Sydney Hotspots will give you the data on which areas are leading the recovery and why they are positive prospects for continued growth.
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