Given the news early in April, with one home in the Inner West selling for $1.4 million above reserve, and with a 90.4 per cent clearance rate, you might be thinking: Is it time to sell my Inner West property?
Before you make a decision, let’s check how the market is doing overall as well as see some updates on the Sydney property market.
Early gains in 2021
Based on figures from property data firm CoreLogic, Sydney apartments continued their growth pattern over March, posting 2.1 per cent gains. The city’s gains last March put prices of Sydney units up by 3.2 per cent over the first three months of 2021. These increases already make up for the losses during 2020, and prices are actually 0.2 per cent up over the last 12 months.
Moreover, the CoreLogic national home value index showed a 2.8 per cent rise in March, which is said to be the fastest rate of appreciation since October 1988 (3.2 per cent). These records of strong growth are widespread, with minimum values reaching at least 1.4 per cent across the different capital cities and the rest of the states.
At the forefront is Sydney, with gains as high as 3.7 per cent over the month of March and an increase of 6.7 per cent during the first quarter of 2021.
CoreLogic’s research director, Tim Lawless, said that Sydney units have seen two consecutive months of rising values, whilst increasing values have been observed across the Melbourne market since October last year.
What is significant about this boost in property values is that it is owner-occupier-driven, not investor-led, according to CoreLogic’s head of Australian research, Eliza Owen.
Singles competing strongly as property buyers
Single (mostly Gen Xers), owner-occupier property buyers are responsible for 45 per cent of all real estate purchases. This generalised pattern has been observed across the country, including expensive cities like Melbourne and Sydney.
The surge in property buying activity is fuelled by extremely low interest rates, government incentives for first homebuyers and probably a touch of FOMO (the fear of missing out) on these unprecedented opportunities.
Sydneysiders staying put
A lot of Sydneysiders forced to work from home have had time to realign their priorities and revise their long-term goals. Most of them have opted to stay in Sydney rather than move to regional areas, although some initially had plans to move to the countryside or overseas.
Homebuyers whose incomes were unaffected by the pandemic have had a golden opportunity to save a lot of money in the past year. With more disposable income in their hands, some have found themselves moving into bigger and better homes in the same city: Sydney.
Other new homeowners share different reasons for continuing to make Sydney their home:
- t’s a global city with great infrastructure.
- It’s not your typical crowded, urbanised city.
- It’s not your typical crowded, urbanised city.
- It’s close to the sea and offers beautiful harbour/water views.
- It’s easy to access nature parks and engage in stress-busting outdoor activities.
- It’s home to great universities offering world-class education.
- It has the best lifestyle amenities.
For these reasons and more, Sydney, including Balmain and the Inner West, remains a highly desirable place to live.
So, if you’re keen on selling property in the Inner West, now is definitely a good time.
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.
