Sydney has been created significant amount of jobs since 2015. On average Sydney has been growing its vacancies by 3.12%, which is a significant growth for a state that is already the largest in the nation from the number of available jobs.
Creation of that many jobs supports property market in the long term. The current decrease in property values in Sydney is a welcome change, we were seeing affordability as a major issue for local economy. We don’t support the estimates of significant downward price movements in Sydney. The economy of NSW continues to grow at good pace and number of jobs continues to be strong.
Affordability remains an issue in Sydney. Despite Sydney property market falling over 10.25% as at 25th of February according to Corelogic, we still hold the view that Sydney property remain beyond reach of many. Unless there is a significant pick up in wages and salaries we are not seeing the reason for Sydney property prices to skyrocket.
We expect Sydney property prices to continue their decline, albeit in more moderate pace. We also expect Sydney property to plateau towards the end of the year and move sideways for the next year. Strong economy and significant investment in the state is likely to support the prices and reduce the chance of further, significant decreases.