The past two years have certainly been interesting in the property world, and what happens over the next year is sure to keep eyes on property reports. But what factors should we expect in the property market in 2022?
As the international borders reopen and we start to see more immigrants and international university students come back into the market, property experts predict that prices, especially for units, will rise. Arrivals from overseas will need accommodation, and traditionally they’ve favoured apartments over houses as being a more affordable option.
We believe we’ll see more investment activity; the Sydney market tends to rely on overseas migration to fill rental properties in particular. Already we’re seeing more development activity that speaks of optimism, and confidence in the sector.
Inner West homes are popular with the British expat market, due to the pub scene and village atmosphere; as borders reopen, we should see more of this market come back to our shores, bolstering property prices.
Apartments are on trend
Demand for dwellings continues to rise. Rental vacancies hit a 16-year low in January at 1.3% and demand increases in all capital cities, according to SQM Research. With house prices jumping, the gap between houses and apartments has widened, making units a popular choice.
Many developers are looking at the ‘build-to-rent’ sector, as well as building mixed-used developments to capitalise on predicted immigration numbers in the coming months and years. Pent-up demand will need to be satisfied. Despite the recent push to live regionally, and the continuance of a hybrid or work from home work model, young people who want to network, and those with ambitions, will return to offices and require accommodation.
For investors, now is a great time to start thinking about your next purchase. As interest rates and property prices start to increase further, investors may find it more difficult to get into the market. For those intending on buying close to the city, it’s time to speak to your mortgage broker to see just how far away you are from owning your new home.
Is it time to sell your Inner West home?
If you’ve decided to sell your property this year, it’s important to think about how you’ll do this and the financial implications.
We’re confident that the first half of this year should remain buoyant; however, we aren’t ready to make any definitive prediction for the second half of 2022.
All we can advise is that if you’re holding on to a family property and have plans to downsize or upgrade in the next few years, right now is probably the best market in which to do it. You might consider buying your new property before selling your existing property. Alternatively, you can sell first and then buy, but they’ll be other considerations to make if you chose this option.
Talk to us first if you are considering selling your Inner West home. Recently we’ve seen a flood of properties coming onto the market. There’s mixed signals coming form economists and property pundits. At the end of the day, no one quite knows what the property market will look like over the coming months, so being prepared to either jump onto some great properties or being prepared to sell your property is key.
Can we help with your Inner West home?
Whether you’re ready to sell or need help to rent your investment property, we have the experience and local knowledge to make your property journey easier.
Looking for help selling your home or renting your investment property? Our team at Belle Property Balmain support homeowners across Balmain, Balmain East, Birchgrove, Rozelle and Lilyfield. Feel free to get in touch for a no-obligation discussion or property appraisal.