The Sydney property scene is set for some significant changes in 2024, according to the latest insights from Ayre Real Estate, a leader in the Sydney apartment sector. Principals Adrian Wilson and Craig Donohue have peeled back the curtain on future trends, having observed a notable shift in buyer behaviour throughout 2023.
Adrian Wilson, the Founder and Principal of Ayre Real Estate, shed light on this shift stating, “We observed a unique scenario in 2023, with a surge in high-quality properties hitting the city and inner-city apartment markets. This influx, which would have swiftly sold in previous years, indicates a noteworthy transformation in buyer behaviour.”
The Sydney and Inner-city property markets aren’t the only areas expecting evolution; the suburbs, too, are in flux. Wilson noted, “In the suburbs of Sydney, downsizers are hesitant to sell their properties due to negative market sentiment and a reduced sense of urgency. Consequently, upsizers seeking larger accommodations face limited options, maintaining the competitiveness of markets driven by upsizers, such as family homes.”
Looking at what’s ahead for 2024, Ayre Real Estate has flagged several key predictions that could transform the market’s landscape. A pronounced shortage of new units in Sydney is expected to heighten appetite for apartments, which Wilson suggests could present “a remarkable opportunity for savvy buyers” in the current climate.
With financial pressures like elevated costs and rising interest rates shaping the market, vendors are set to sell off investment properties, offering broader choices for buyers. However, these same conditions have thinned the ranks of potential buyers, particularly among traditional segments like downsizers and investors.
Yet, it’s not all about budget constraints. Demand is spiking for apartments with luxury amenities such as pools, outdoor spaces, and attractive views, with larger penthouse-style apartments becoming the preference for multigenerational living arrangements.
Despite challenging economic conditions, value growth in Sydney dwellings has been striking. “Last year, Sydney dwelling values increased by approximately 7%, setting a record high that is expected to be surpassed again in 2024. 2023 saw a complete price recovery from the downturn of 2022 in the Greater Sydney market,” Craig Donohue, another Principal at Ayre Real Estate, highlighted.
The rental market is also poised to remain strong, with rent rates hitting new highs and vacancy rates at historic lows. Yet, with borrowing power hampered and the cost of living increasing, consumer confidence remains tethered and has not returned from its slump in mid-2022, despite a reported record growth in property values, according to Craig.