Sydney property market has been in sustained decline over 400+ days. Over the last year Sydney property prices have declined over 11%, according to Corelogic. This shows an indication of overall market. However, we have highlighted more than once that there are markets within markets.
Since peak Sydney property prices have declined over 12.7%. This is approaching our prediction of declines in vicinity of 15% over a year ago, the latest update can be found here.
We will look into our analysis of separate Sydney property markets next.
Wester Sydney property market
In our analysis we have looked at suburbs like Box Hill, Schofields, Kellyville, Leppington and Marsden Park. Properties in this areas are rather stable (compared to other areas in Sydney). We are seeing some properties and land selling for lower prices than original purchase price. We are also seeing some sellers trying to offload land at a loss. We think this could be due to speculative buying last year, when buyers assumed that prices will continue to go up. Now that this growth in the property market is not eventuating some sellers are offloading properties at a discount.
There is significant competition in the Western Sydney property market. We are seeing completion not just from sellers wishing to rationalise their property portfolio. There is also competition from land releases, existing dwelling and a large number of newly builds.
Southern Sydney property market
When analysing South Sydney property market we are looking at areas like Greenhills Beach, Kurnell, Menai and Barden Ridge. The prices are softening and we are seeing some discounting in the area. Despite the above we don’t expect property prices in this area to move significantly either way. This is due to limited competition from newly released land and restricted amount of new estates. We believe this is the area to watch. Additional bonus is the strong owner occupier demand in these areas.
North Sydney property market
The Northern Sydney property market is a market of paradoxes and divisions. There are areas where the process did not move significantly like in inner north. Properties that have great appeal and excellent finishes are still in high demand and often command good prices. However properties that are requiring work or are not in demand with owners’ occupiers could be discounted.
Further areas like Warriewood and Manly Vale are seeing broad declines in values for investor stock type properties.