The Sydney property market is poised for continued growth in 2024, with several factors contributing to this trend. Here’s a summary with linked references for further reading:
Predictions of House Price Rise:
Economists from major banks forecast a 3-5% rise in house prices in 2024. This growth is largely due to a persistent lack of housing supply. Despite potential interest rate hikes, the property market is expected to remain robust. The Commonwealth Bank of Australia (CBA) specifically anticipates a 5% growth across Australia in 2024, with Sydney’s house prices rising by 4% and Melbourne’s by 5%. The strong rental market and the shortage of housing supply are key factors underpinning this growth (The Sydney Morning Herald).
Growth Over the Next Three Years:
Sydney house prices are projected to increase by about 16% over the next three years, as noted by Oxford Economics Australia. This growth is expected to be driven by anticipated interest rate cuts and a growing shortage of housing stock. Interestingly, units in Sydney are predicted to outperform detached homes, with an increase of over 23% in their values over the same period (The Australian Financial Review).
Sydney Leading the National Market:
Currently, Sydney is seen as the strongest market in Australia, surpassing Perth in terms of positive sales activity rankings. The city has shown significant recovery, especially in 2023, with a notable rise in both house and apartment prices. The imbalance between supply and demand, including shortages in listed properties, new dwellings, and rental homes, has been a major contributing factor to this trend. CoreLogic Home Value Index reported a 12.1% rise in house prices to date, which is the highest in the country (Canstar).
These reports collectively indicate a robust and growing Sydney property market for 2024, buoyed by factors like interest rate trends, housing supply shortages, and a strong rental market.
