Property markets across Australia have grown stronger as 2023 has progressed.
And this notable resurgence has been led by Sydney, which we regard as the leading market in the nation.
It is the market with the strongest data on sales activity, slightly ahead of Perth, and it’s also a national leader of price growth in 2023, both for houses and for apartments.
Sydney had shown signs of recovery early in 2023 but our most recent analysis shows that the city’s market has gone to another level more recently.
Most of the suburbs across Greater Sydney have experienced significant improvement in their market activity – which puts Sydney at the forefront of a national revival in sales volumes.
The upsurge in the Greater Sydney market is widespread, including the upmarket areas and the more affordable ones – the buoyancy includes the inner city, the north shore, the beachside areas, the middle ring precincts and outer west areas like Blacktown and Penrith.
It reverses the decline seen in 2022 and provides a strong basis for the steady price growth of 2023 to continue to the end of this year and into 2024.
The prospects for price growth have been enhanced by rising consumer sentiment, helped by four months without interest rate rises by the Reserve Bank.
The key factor in all this is the imbalance between supply and demand. There are shortages of everything important in real estate – in Sydney and elsewhere in Australia – including properties listed for sale, new dwellings and homes available for rent.
With the onset of Spring, there are more homes listed for sale – but listings remain well below normal and still constitute a shortage.
This has helped generate price growth, with the CoreLogic reporting a 10.9% rise in house prices in the “year to date” (the highest in the nation) and a 7.5% increase in unit prices (second highest among the capital cities, after Brisbane).
A standout feature of the Greater Sydney market is the rise of apartment markets in the inner-city areas and beyond.
The Sydney City municipality is arguably the strongest market in the Greater Sydney metropolitan area.
The theme of strong apartment markets seen in other markets throughout Greater Sydney.
We also note that the outer ring precincts have recovered emphatically, led by the City of Blacktown.
And there is also strength evident in the markets of Penrith, Liverpool and Parramatta.
It all points to a continuation of good market activity and steadily rising prices in markets across Greater Sydney this year and beyond.