The global COVID-19 pandemic has been making waves in the property market, with buyers and sellers alike wondering what this means for them. There are a number of factors that play into the increase in Sydney and Australian property values. COVID-19 has led some homeowners to sell their properties at inflated prices because of concerns about future price growth or uncertainty over how long the lockdown will last. Some Australians have found themselves unable to make mortgage payments since COVID-19 began – forcing them into foreclosure and putting even more pressure on the housing market. These factors are leading to an increased demand for real estate.
The Sydney Housing Market in 2021
The year 2021 is predicted to be the tipping point in regard to property prices in Sydney. The year will see a huge increase in property values because of the increased demand for real estate. This is due to factors such as more people moving into cities and renters letting their homes. COVID-19 has been making waves, with many homeowners selling their properties at inflated prices because they are unsure of what will happen or how long the lockdown will last.
According to real estate professional, Michael Xylas, director at MGM Martin, “The Australian real estate market continues to grow and remains strong even as we continue to deal with the uncertainty of Covid-19 and its variants, sudden lockdowns and restrictions, to new check-in requirements and more.” Confirming house prices in major cities have increased by 15.4%.
The effect of COVID-19 on property prices in Sydney
The COVID-19 pandemic is already impacting how people are living and working in Australian cities, but it’s not clear yet what these impacts will be long term. The severity of the impact will depend on whether Australia continues to enforce strict isolation quarantines for a prolonged period: if they do, then more Australians may start accepting, as normal, changes to their lifestyle or movement within their environment.
The continued lockdowns imposed to restrict the spread of the virus are becoming intolerable to those living in small inner-city apartments. This is leading to increased demand for homes with outdoor spaces or larger apartments with balconies and more living space.
In order to comply with regulations imposed to prevent the spread of COVID-19, many workplaces are asking employees to work from home where possible. This arrangement may become accepted by companies and their employees, greatly reducing the number of commuters to CBDs each day. If people are going to be working from home, they will want to create a comfortable working environment. For many people, this may entail purchasing a larger home with more rooms to house bedrooms and living spaces plus the additional space needed for the home office.
As a resident of Sydney or anywhere else you may be in Australia, what does this mean for you? It means it might be time to sell your property. As more people look into upgrading their property, your home may be worth more than you thought.
Is this the best time to sell a property?
If you are unsure about what your property might be worth in 2021, there are several things you should consider.
Sydney is experiencing a number of factors that are leading to an increased demand for property. If you have always wanted a more expensive home or if COVID-19 has led you to sell your current residence, now may be the time to trade up and move into higher price brackets. It will allow you to get ahead before others do as well.
Ask the professionals at MGM Martin
In these unique times and within the hard-to-predict housing market, It’s important to stay informed and make sure you are aware of any changes in the market. Then, when it comes time to sell, you are able to do so as effortlessly and profitably as possible.
The team at MGM Martin are Sydney real estate experts. They understand the market and have years of experience helping others like you!
Give yourself a competitive edge. Ask MGM Martin what your home is worth right now. Remember this is a unique time when prices are going to be increasing.
A recent report from ANZ bank forecasts the housing market in Sydney will rise to 19% in 2021, then slow to 6% in 2022. It would seem 2021 is a good time to sell!
Make sure you are looking out for your financial future as well as the value of your property because now is a time when it might be better to trade up and get ahead in terms of price, rather than risk falling behind.