Recent Home Living Property Culture The Team
Recent Home Living Property Culture The Team
Property

THE SYDNEY MARKET - 2015 IN REVIEW

31-Jan-2016
Written by Property Analytics

Photo by Seb Zurcher (Unsplash)



Sydney house values increased by more than 10% for the third consecutive year in 2015. According to RP Data – Core Logic, year-on-year price growth peaked at 18.4% last winter, and tapered off from there, with full end-of-year growth landing at 11.5%.




Most analysts and agents feel the heat came out of the market in the busy pre-Christmas period. Prices have certainly flattened in recent months, and it appears the Sydney house boom has ended, as it always would.




Some factors will contribute to a more subdued market in 2016, such as lower investor and foreign purchaser activity, higher borrowing costs (the banks all lifted their rates in November, independent of the RBA), and 9-year low national population growth.




But some key fundamentals point to continued demand from homebuyers: consumer confidence has improved, NSW unemployment is low and trending in the right direction, and overseas migrants continue to choose Sydney as the best place to settle.




Last year, like the year before, was characterised by very strong increases in Sydney house prices. Sydney was due for growth, but double-digit rises can only last for so long. Expect a more sustainable market in 2016, with better balance between purchasers and vendors.

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