Sydney inner city market: End of financial year predictions

Sydney inner city market: End of financial year predictions
Sydney inner city market: End of financial year predictions

The end of the financial year is here, which means it’s time to look ahead at what the next may hold.

Adrian Wilson, principal and managing director of Wilson Property Agents, said that there are a number of things he believes will happen for Sydney’s inner city market.

“Predicting the future of the property market directly is tricky at the moment. Which part of the market you are interested in needs to be considered specifically, and this includes buying, selling, investing, developing or off-the-plan.

“These segments then need to be broken down by precinct, suburb, area and state before categorising them into price, size, location and opportunity,” he said.

Here’s how he thinks Sydney’s inner city market will perform:

  • BELOW $1 MILLION

High demand for quality one and two bedroom apartments

Good views, parking, high level of presentation, close to parks and water, or strong rental yield will all remain desirable.

Growth expectation: 4% to 7%

  • $1 MILLION TO $2 MILLION

Reasonable levels of demand to continue

Stronger activity in the early $1 million range, tightening towards the higher end of the price bracket

Currently around 50 properties advertised in this segment – which isn’t many

Most listings placed in Southern, Mid-City precincts and limited in Northern CBD, Hyde Park or Harbourside areas

Growth expectation: 2% to 5%

  • $2 MILLION PLUS

This prestige market has been quiet for some time but was bullish in October 2013 to March 2014 with 29 sales totalling $91 million

It had been up on a year previous (22 sales at $64 million)

Segment to stabilise

Growth expectation: 1% to 3%

Jennifer Duke

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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Sydney

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