- With the pandemic, Sydney house prices will rise 13% more than that in pre-COVID levels by 2023; Similarly, house prices in Melbourne will rise 5% more
- Melbourne is fast becoming Australia’s biggest city, having an 18% greater growth rate than Sydney
Australia has been a popular destination for foreigners all around the world. It is mainly because of the high quality of life and the low population that allows space for numerous natural landscapes and clean air. Years and years of migration have made Australia one of the world’s most diverse nations with a rapidly growing number of immigrants.
According to Knight Frank’s global house price index, housing prices across more than 50 countries increased by at least 7.3% globally, where Australia ranked 18th with an annual increase of more than 8%.
House Prices in Australia
Even amidst the global pandemic, the Australian property market is one of the few that barely witnessed any decline in the prices, and for major cities, the prices were even higher than usual.
The latest analysis proved that the house and unit prices have gone up by 4-13%. Analysts believe that a Sydney house priced at AUD986K in December 2019 should normally be AUD1119K in December 2023, but now it is projected to be AUD1244K in 2023. For Melbourne, the price may jump from AUD760K to AUD940K in 2023, instead of AUD905K, which means a whopping 24% rise instead of a 19% rise.
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Melbourne and Sydney are two of Australia’s largest cities that are well renowned globally. Their popularity often leads foreigners to believe that they are Australia’s capital city.
Melbourne’s Property Market
Many argue that Melbourne is a much better choice for investment since it is built around local residents and workers, and has a very high growth rate. On the contrary, Sydney is primarily dependent on tourism and as of 2019, the growth rate was at least 18 % slower than Melbourne.
Some researches showed that, Melbourne property market has been strong for more than 40 years and it is consistently growing. The average house price went up by 7.9% annually, and the rate was 7.73% for units/apartments.
The five types of well-performing properties in Melbourne are: Melbourne houses, Melbourne townhouses, Melbourne units, Melbourne apartments, commercial and industrial properties; these are the main types of properties in existence and it deems that Melbourne is doing good in all these sectors.
Melbourne CBD is said to have much more property development than that of any other places in the larger metropolitan area. Most of these are commercial properties. However, due to the growing population in the area, residential properties (mostly apartments) are likely to rise around 30,000 over the next 20 years. It is to be noted that the majority of these properties are purchased by overseas investors.
The properties near the bayside or the CBD are more likely to be in demand in the future with a great value since those areas have limited amounts of land and are also very close to employment and other important locations.
Sydney’s Property Market
A little bit of history…
Sydney property prices have grown more than 400% over the past three decades. A house worthed AUD180K in 1990 had increased its value to AUD870K in 2020.
Sydney is popular among foreigners. The supposed lifting of the imposed border lockdown did give birth to hope for the Sydney property market, however, the recent announcement of the continuation of the lockdown has impacted the sector greatly.
Experts believe that the pricing will increase by more than 16% over 2021, mainly due to the low interest rate of just 0.1%. The value of houses is much higher in the inner and middle-ring suburbs and is continuing to increase due to the growing demand from investors. The beachside suburbs are also likely to perform very well. Some areas worth mentioning would be Byron Bay, the Central Coast, Wollongong, New South Wales, etc.
Since the Sydney property market has barely seen any decline in price in the past few decades and is continuing to sky-rocket, it is safe to say that “now” is always a good time to invest in a property in Sydney, because the demand and value are not likely to decrease at least in the upcoming years.
Now that you’re here…
At Denzity, we help you find your next overseas property. If you have any enquiries about the above properties, or questions about the process, reach out to our team here. Stay tuned for more investor focused content, financial advice, and industry updates.
Please note all the above stated is opinion only and does not constitute proper investment advice. Denzity is not liable for any investment decisions that result from following the opinions outlined above.