Sydney property market forecast 2023 NAB's latest Sydney house price forecast now has Harbour City dwellings losing just -2.2 per cent in 2023. Westpac's Sydney real estate forecast now sees modest growth returning in 2023 with a +1.0 per cent uptick predicted. CBA and ANZ are even more optimistic.
"Property price falls are likely to continue and accelerate in 2023," report author Cameron Kusher said, blaming the cooling market on the rising cost of borrowing and its associated drain on household budgets. Australia's most expensive cities will likely see the largest price falls, he said.
Sydney's high level of household indebtedness makes it susceptible to rising interest rates and tighter lending conditions. Soft growth is expected to return in late 2023, supported by stamp duty reform, and the median house price is expected to reach $1,405,000 in the June 2025 quarter.
Sydney property market forecast for 2023 – 2024. After booming through 2020 and 2021, Sydney housing values fell 12.3% from their peak in January 2022. This creates a window of opportunity to get into the property market as the Sydney market picks up again.
Sydney house prices are forecast to grow by 6-9% within the next financial year. If this eventuates, the median house price will fall between $1.62 million and $1.66 million, surpassing the previous $1.59 million peak in March 2022.
The combined capital cities could see house prices rise 2 per cent to 4 per cent by the end of the 2024 financial year and units could climb by 1 per cent to 3 per cent, the Domain Forecast Report predicts.
The data provided exclusively to The Sunday Telegraph showed the median house price would be $1.92m in 2027 and the median unit price would be $1.02m. Sydney prices would also be nearly triple those in Perth, Adelaide and Darwin if the current growth trajectory continued.
A new report ranks global property markets as fair valued, overvalued or in bubble risk territory. Sydney property prices are overvalued despite recent price falls, the report found. Experts warn prices will not necessarily fall back to levels that would be fair value.
Other suburbs where the houses were deemed overvalued were in the southwest, including Glenfield, Camden South, Moorebank and Harrington Park. DSR categorised suburbs as “overvalued” if prices had risen dramatically over a sustained period and were now well above the cost of similar homes in nearby areas.
The downturn in the global housing market is set to continue in 2023, with most Australian cities expected to fall by double digits in what is shaping up to be the deepest property correction in more than 30 years. Few people are willing to buy or sell in a falling market, and stock is hard to find.
The average annual growth rate for well-located capital city properties is about 7%, which means that Australia's median dwelling price should be around $1.1 million in 2030. But some properties will outperform others by 50-100% in terms of capital growth, so take these house price predictions with a big pinch of salt.
Sydney, which led the fall in home prices last year as the Reserve Bank began lifting its cash rate, will also power the rebound. By the end of June next year, the city's houses are forecast to be 6% to 9% higher than at the end of last month, lifting the median price to a record of just over $1.6m.
Property Prices Could Potentially Surge in 2024
Evans and senior economist Matthew Hassan in a market update. "Prices are now expected to increase by 5% in 2024, revised up from 2%." Westpac predicts that by 2024, house prices will rise by 5% in both Sydney and Melbourne, 6% in Brisbane, and 8% in Perth.
If the price rises are maintained for the rest of the year, home values will end up about 4% higher in 2023, defying earlier predictions of sharp falls of 10% or more for this year, CoreLogic says. “Economists are shredding their previous price forecasts,” said Sally Tindall, research director for RateCity.
On the surface, Thornley suggests now isn't a bad time to buy – though he argues focusing on market timing is the wrong approach for property. “Now is a better time to buy than say 18 months ago and those laughable predictions of 20-30% crashes in housing prices. This simply doesn't happen in Australia.
1. 2028: Double Bay (NSW) And coming in at the top of the list is (surprise surprise) another suburb in Sydney's east: Double Bay. The suburb of 3352 taxpayers has an average taxable income of a whopping $266,381 – almost four times as much as the national average.
One of the primary reasons for high house prices in Australia is the imbalance between supply and demand. Housing supply is under ongoing strain due to an increasing population and a limited land supply, particularly in large cities like Melbourne and Sydney.
Sydney property market forecast 2023
NAB's latest Sydney house price forecast now has Harbour City dwellings losing just -2.2 per cent in 2023. Westpac's Sydney real estate forecast now sees modest growth returning in 2023 with a +1.0 per cent uptick predicted. CBA and ANZ are even more optimistic.
Cremorne had the sharpest decline, its median house price falling 23.6 per cent or more than $778,000 to $2.52 million.
It's often said seven to 10 years is needed for property values to double, but new PropTrack analysis shows it took the median house price 15.4 years through to May 2023. It required even longer for units, around 17.8 years.
RLB forecasts that house-building prices this year will rise by as little as 4 per cent in Sydney to as much as 7.5 per cent on the Gold Coast. But the rate of price rises has halved in some cities as supply chain pressures subside and material cost escalation eases.
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"We will see prices continue to fall in 2023 but it is unlikely they will erase all the growth achieved during the pandemic upswing. That was a once in a generation boom. A lottery win for some homeowners across Australia."