Real estate is an investment. Whether you’re looking for your dream family home or a house you can rent out, the right property can yield amazing results in the long run.
At CM Lawyers, we have experts specialising in property law and conveyancing, and they can guide you in every step of homebuying, starting from finding the best property for your needs. To help you with your initial search, we have compiled some trends and predictions for the Sydney property market in 2025.
Current Sydney Property Market Performance and Forecast for 2025
The housing market has seen a substantial increase in 2024, with house values in Sydney rising by 4.5%. According to ANZ’s bank forecast, there’s a potential 5% increase in Sydney house prices by 2025. Buyers can expect a consistent rise in house price in Australia Sydney, driven by increased buyer demand and supply shortages.
Below is a table on property types, their median price, and their monthly, quarterly, and annual changes. This should provide more insights into Sydney property prices and how quickly they can change.
Investment Properties and Key Suburbs for 2025
Looking for an investment prop? The Sydney housing market offers opportunities in affluent areas and growth suburbs. Properties for investors in well-established neighbourhoods like Randwick, Congee, and Lane Cove remain an excellent choice. Sydney’s investment and property experts also recommend townhouses and boutique apartments in middle-ring suburbs. These properties allow for more affordable real estate investing and have become more popular due to lifestyle factors.
Here are the top investment suburbs that the Sydney, Australian housing market has to offer. If you’re looking for property and investment, consider the key features that make each suburb unique, as well as their forecast growth rates.
Rental Market Challenges
The Sydney rental market is still having a shortage, with house rentals near me and rentals near me homes becoming increasingly hard to find. According to SQM Research, Sydney’s vacancy rate is at 1.7%, while a balance market has around 2% to 2.5% vacancy rate. By historical standards, Sydney’s 1.7% vacancy rate is exceptionally low.
According to ABS figures, Sydney’s population grew by 2.1% in the 12 months to June 2023, driven by migration and urban appeal. This increase in population also leads to an increase in competition for affordable rental housing.
Meanwhile, these challenges in the housing market in Sydney Australia, especially in the rental market, can serve as an opportunity for real property investment. If you have properties in suburbs with low vacancy rates, you can expect strong rental demand and potential rental price appreciation. For those who haven’t ventured into real estate and investments yet, this might be the time to consider buying an investment property.
Impact of Infrastructure on Property Values
Australian house prices Sydney are also increasing because of large infrastructure projects, such as the Sydney Metro expansion. Here are some suburbs and the infrastructures affecting their value.
PropertyUpdate.com.au
realestate.com.au
If you’re looking for a property to invest in, you might want to consider these suburbs.
Demographics and Lifestyle Preferences
Changing demographic group preferences are also affecting property prices in Sydney Australia. For example, Baby Boomers, who hold nearly half of Australia’s private wealth, are downsizing, which in turn creates opportunities in the property market for younger buyers and investors. More information about demographic groups, their preferences, and their impacts on the market can be found below.
Predictions and the Future Sydney Property Market
As the property market continues to grow, real estate remains a top choice for investors looking for long-term value. The table below shows the forecast indicators for Sydney’s diverse and dynamic property market.
Sources:
PropertyUpdate.com.au
AustralianBroker
Trusted Legal Advice on the Property Market
The Sydney property market continues to evolve, faced with both opportunities and challenges. Whether you’re buying your first home or considering an investment, having a trusted legal team by your side can make all the difference in your decision-making process.
At CM Lawyers, our property law and conveyancing experts can guide you through every step of your property journey. We’re here to help, no matter what stage of property buying you’re at. Please don’t hesitate to reach out to us so we can help you make the most out of property market opportunities.
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