There’s no denying that 2021 has been quite an eventful year for the Australian property market.
Between rising prices, record-low interest rates, APRA’s changes to lending standards and rise in technology uptake to facilitate property transactions, this has been a year that no one saw coming (even after 2020!).
Nevertheless, the Sydney real estate industry has remained strong and managed to come out the other side as one of the nation’s highest-performing sectors.
So, now that 2021 is almost over, what’s in store for the year ahead?
Here are our 5 predictions for the property market in 2022
To give you a bit more clarity around how the Sydney property market may look in the new year, our experts have compiled their top 5 predictions for what’s to come in 2022.
1. Luxury market buyers will have space on their wish list AND flexible working arrangements will make the Northern Beaches an attractive place to create their own private sanctuary.
Buyers are no longer simply looking for any place to live – they’re willing to pay a premium for a home that will complement their lifestyle and provide work-life balance, especially in the age of flexible working arrangements.
This is especially true in the case of expats who have been working abroad and have some cash to splurge as they resettle. Their return will continue to drive up demand and prices in the already limited luxury real estate market.
This will make Sydney’s Northern Beaches a highly sought-after location for buyers searching for premium properties. With its vibrant local communities and relaxing coastal environment, the luxury offerings of the Northern Beaches are ideal for work-from-home setups and stay-cations.
If you’re thinking of selling your luxury home on the Northern Beaches, you can take advantage of record-breaking prices and net high returns this coming year.
2. Off-the-plan properties will allow more buyers to get into the market easier, potentially increasing their returns before the build has even finished.
The highly competitive Sydney real estate market will see more first home buyers take advantage of house and land packages and off-the-plan builds rather than fight for an existing home.
With government assistance and incentives available[CM4] , buying off-the-plan can provide several benefits, such as discounts, flexible payments, tax depreciation and design customisation. It also allows buyers to lock in the price of their home at today’s prices, despite potentially not moving in for another 2-3 years.
Plus, with the current market, buyers can expect that by the time their new home is finished, it may already be providing them with excellent returns on their initial investment.
3. International travel and locals returning home will cause an increase in house prices.
The reopening of international borders will pave the way for overseas students, immigrants and skilled workers to return to Australia and seek accommodation close to schools and workplaces.
Local students returning to face-to-face learning will also once again make the move to be closer to their university.
This will see vacancy rates decline in our cities and demand for housing increase, driving up prices even further. Promising returns await investors, especially those with apartments situated near major cities.
4. Many commercial properties will focus on retrofitting and repurposing spaces for alternate uses to maximise value.
Commercial real estate has taken a huge hit during the course of the pandemic, and the changing landscape of the workplace means commercial property owners need to adapt to maintain the value of their investment.
Retrofitting and repurposing commercial settings will allow investors to maximise the value of their space once again and give them the ability to stay flexible and evolve as we move into the future.
Contact our Commercial Concierge for more information.
5. There will be an increase in sustainable commercial properties for lease.
2022 will see an increasing demand for commercial real estate owners to provide sustainable environments for tenants. More businesses now consider the impact of their operations on the environment and will seek properties that enable them to minimise their footprint.
Find yourself in a better place in 2022
The Australian property market has staged an outstanding comeback from the pandemic to post another high-performing year in 2021, and 2022 looks set to follow the same course.
“The industrial market locally and nationally has seen unprecedented growth in the last 2 years, and experts say this is set to continue, albeit at a slower pace.” – Vincent West, Upstate Director.
There’s no way to know exactly what the future holds for the Australian property market, but with the help of your local real estate experts at Upstate, you can feel confident that you’re making the best and most informed property decisions in 2022.
As the largest residential and commercial property agency across Sydney’s Northern Beaches, you can rely on Upstate to provide you with customer-centric guidance and professional advice. As we head in 2022, we can help you to get the most out of your properties!
Let’s discuss your options
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Speak to your local Upstate team today and we’ll show you the possibilities that earn excellent results. We look forward to chatting with you soon.
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