You could be forgiven for thinking the Sydney property market has run out of steam.
Media recently has highlighted reports that the monthly changes in median house prices eased a little in late 2021.
But it would be a mistake to think that Sydney’s boom is over.
I think that in 2022 some precincts of the Sydney market will continue to show exceptional price growth.
We have just published our new 2022 edition of Top 5 Sydney Hotspots and it highlights five precincts within the Greater Sydney Area that I believe will achieve above average price growth this year.
Overall, I expect that property price growth across Sydney will be lower this year than in 2022 – because Sydney prices overall grew 30% last year and it would be hard to achieve such significant growth two years in a row.
But in certain key pockets there is still plenty of double-digit price growth to be had.
There was no let-up in demand for property in the Sydney market in 2021, despite everything that the pandemic threw at it.
Despite lockdown periods, the closure of international borders and the loss of population to the regions, Sydney still delivered a stellar year in 2021.
I expect that demand to continue in 2022 – and in some ways to be enhanced, once overseas migrants and international students are able to come into Sydney as they did in large numbers in the pre-pandemic world.
But it is going to be more a case of selecting the right market to invest in.
A good rule of thumb when investing in property is to go where the infrastructure spending is happening.
That is what is going to have the biggest impact on property prices and in Sydney there are plenty of places where that is happening.
Big spending on infrastructure – whether it’s roads, rail links, schools or hospitals – leads to economic activity and jobs. And that translates into demand for property, both to buy and to rent and that inevitably pushes up property prices.
There’s also further growth to be had in some of the more affordable Sydney suburbs – and I mean affordable by Sydney standards, with price points between about $900,000 and $1.5 million.
So opportunities remain in the Sydney market to buy well with good prospects for long-term capital growth.
To find out where to focus your attention, get the new 2022 edition of the Top 5 Sydney Hotspots report.
