Sydney property prices continue to astound – rising by 6.3 percent in the last quarter - and the auction market remains strong with clearance rates topping 90 percent in most areas of Sydney.

Hello, I’m Tavis Standen of Standen Estate Agents bringing you the Standen Property Market Report for April/May 2021.

A recent report from the ANZ Bank predicts Sydney house prices will rise to as much as 19 percent this year, with most segments of the market showing strong growth. This is certainly in stark contrast to predictions in the middle of last year of massive falls. While house values are holding their own, rents have dropped over the year across several parts of Sydney with the largest declines experienced in the city and South Sydney areas where rental values fell by 4.1 percent in the first quarter of 2021.

According to SQM Research, Sydney’s median weekly rental price as of April was $885 for all houses and $692 for all units – and this is slightly down when compared to the same time last year. Vacancy rates sit at around 3.4 percent – up from 2.9 percent this time in 2020.

Record low interest rates of 0.1 percent means it’s cheapere to buy than rent in many cases, with more first homebuyers and first-time investors in the market now than we’ve seen in the last five or 10 years.

NAB CEO Ross McEwan says about 16 percent of NAB’s new lending is going to first homebuyers, which is about double the usual numbers. That “fear of missing out”, means many are getting into the market now to avoid being priced out later. Investors, too, are seeing good capital growth and rental returns when compared to other investments such as shares. Michael Yardney of property update dot com dot au says investors are recognising that whatever purchase they make today will look like a bargain in 12 months’ time.  

Despite climbing house prices, the Reserve Bank is not hinting at an interest rate rise in the short term but may start curbing mortgage lending at some point to cool the market.

The consensus is that when you have a larger pool of buyers at a time of less stock – and therefore more competition – you should be patient first and foremost. It’s also important you be willing to remain flexible when it comes to the type of property you’re looking for. You might have your heart set on a particular home in a certain area, but maybe you’ll give yourself a better chance by considering something similar in the next suburb.

Whether you’re buying or selling, expert advice from those in the know is your best bet when it comes to making an informed property decision.

At Standen Estate Agents, the team and I are always happy to help you navigate the market and achieve your property goals.

I’m Tavis Standen of Standen Estate Agents. Thanks for joining me.