• February 1, 2021

Bang! The 2021 starter gun is off and the market is running hard. As we anticipated the property market has continued to accelerate into the new year with record buyer enquiry and foot traffic through our inspections. Spurred on by low interest rates and the ongoing rhetoric that borrowing money will be at historic low levels for years to come, buyers are queuing up to inspect the latest listings for the year. We’re seeing the full gamut of people looking to make a move, from upgraders and downsizers to investors and those seeking a lifestyle change. However, as we saw evolve last year, the common theme among prospective buyers is to purchase a home they can make as comfortable and attractive as possible.

8 Grafton Street, Balmain – Sold above $5m

We expect to see the local prestige market continue to build into the year with increased offerings to enter the market. Buoyed by recent strong sale prices, prestige property owners are far more confident about offloading their prized properties as conditions continue to swing upward in the property cycle. In fact, across the board we expect to see increased property transactions in the first quarter of 2021. The insatiable appetite for Sydney property is on full display at our open homes at the moment, where we’re recording in excess of 60 and as high as 100 individual groups attending a single inspection.

1/7 St Georges Crescent Drummoyne – Sold $3.4625m

The early results being achieved also point towards this period seeing the strongest prices recorded in Sydney’s property history, surpassing the last ‘boom’ of 2017. The question bubbling away in the background is how long can this property surge continue and will the regulator APRA step in to tighten lending policy once again? We wouldn’t be surprised if this occurred around the middle of the year but surely APRA will not take such a hard stance as they did in 2017 when borrowing money became so difficult that the property market came to an abrupt holt. It’s not in anyone’s interest to see property prices rapidly increase but it’s a delicate operation to keep prices and confidence balanced and transactions still moving.

18a Chapel Street Lilyfield – Sold $3.45m

It’s going to be a busy year in property that is for certain. The ebbs and flows of market conditions are now becoming faster and occurring in shorter periods. No longer can we rely on the old real estate cycle as we may see a full cycle of ups and down within a year. How the remainder of this year will unfold remains a mystery but financial experts are suggesting double digit price growth. However, it’s these same experts who predicted 20-30% price declines last year, so the vast majority of these predictions are simply water cooler conversations. We’ll keep you up to date with what we’re seeing at the coalface because the reality of daily activity is the most reliable resource for understanding the complex movements of Sydney property.  

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