Sydney property market 2024, boom or crash?

As of January 2023, the Sydney property market has successfully surpassed the bottom of its cycle and is now firmly in the upturn stage. While it’s anticipated that property price growth in Sydney will ease throughout 2024, those who invest in top-tier homes or quality properties will likely view their purchases as bargains in just a few years.

Our research indicates that Sydney house values are expected to conclude 2024 approximately 6-7% higher than the beginning of the year, with apartment values forecasted to grow by 5-6% over the same period.

Amidst these projections, some may be alarmed by headlines predicting a Sydney property market crash in 2024. These claims often stem from perpetual pessimists who have consistently forecasted market crashes, only to be proven wrong time and again.

Property markets naturally experience cyclical fluctuations, and though short-term trends may appear flat or downward, the long-term trajectory has consistently been upward. Over the past 30 years, Sydney’s property values have surged by 449%, demonstrating the resilience of the market despite occasional downturns.

While acknowledging the potential for market dips and slowing growth, the enduring population growth forecasts for both Sydney and Australia at large (projected to reach 8 million and 40 million people, respectively, by the middle of the century) provide confidence in long-term capital growth.

Despite current market uncertainties, attempting to time property purchases based on current cycle positions may not be the most strategic approach. Those with secure incomes and favorable circumstances may find the current moment opportune to establish a foothold in the Sydney property market, especially as others adopt a wait-and-see approach.

Discretionary buyers and sellers may be on hiatus, but life events will persist in New South Wales, creating ongoing demand. Australia’s robust economic and employment growth further solidifies the Sydney property market’s foundation.

Sydney’s allure as a destination for students and highly skilled workers will continue to bolster the housing market. However, certain sectors may face challenges:

1. Apartments in high-rise towers, historically underperforming.
2. Off-the-plan apartments and poor-quality investment stock, particularly those near universities.
3. Homes in outer suburban new housing estates, where some young families may have overextended themselves financially.

Careful property selection remains crucial. Investing in any property without considering specific market nuances may not yield optimal results in the coming years.

In the following posts, I’ll delve into the intricacies of Sydney’s market trends, identify areas with promising long-term growth, and analyze the impact of shifting demographics on the city’s future performance. Stay tuned for a deeper exploration of Sydney’s real estate landscape! 🏡✨ #SydneyPropertyMarket #RealEstateInsights #PropertyProjections2024″