What to expect: Sydney's 2023 property market

While the Sydney market has declined overall, middle-ring areas that offer houses in the $900,000 to $1.5 million range – such as Canterbury-Bankstown, Georges River, Cumberland and Parramatta – still have strong growth markets. According to Canstar’s latest Rising Stars Report, the decline in the market does not mean that all sectors are weak, with apartments attracting increased buyer demand, especially in suburbs where median unit prices are typically half that of median house prices or less ⁽¹⁾.

Where to invest:

• Areas that are attracting growing interest and offer affordable apartments include Sydney City, Inner West and Parramatta LGAs.
• The following is a list of the top 10 suburbs to invest in according to Canstar ⁽²⁾.

1.     Campsie (Units)

2.     Fairfield

3.     Georges Hall

4.     Granville

5.     Jamisontown

6.     Liverpool (Units)

7.     Lurnea

8.     Marrickville (Units)

9.     Rooty Hill

10.  Westmead (Units)

Forecasted trends:

• The Sydney market is most at risk of rising interest rates and tighter lending conditions due to high level of household indebtedness.
• As outlined in the Australian Housing Outlook report by QBE, median house prices in Sydney are expected to record the greatest peak-to-trough declines relative to other capital cities, declining 18% from its peak, slightly higher than previous property cycles ⁽³⁾.
• A forecasted 3% increase in rent growth is anticipated over the next 12 months. Unit rents are set to increase by a forecasted 15% in 2022/23, and houses by 13%.

Regardless of your situation, we are here to help you navigate through the banks and any unfamiliar territory to ensure you obtain the most suitable loan with competitive rates.

Contact us today to dive headfirst into the property market with confidence knowing we will steer you in the right direction.

Find out more about how to invest in property.

Footnotes:

⁽¹⁾ canstar.com.au/rising-stars-report/#NSW/

⁽²⁾ canstar.com.au/home-loans/best-suburbs-sydney/

⁽³⁾ qbe.com/lmi/news/reports/housing-outlook