Is Sydney’s property market really crashing?

Have you been rubbing your hands with glee seeing headlines like, ‘Median price to fall below $1m in Sydney’ and ‘Sydney property prices drop for the first time in 17 months’? 

This is what you’ve been waiting for, right? Sydney’s property market is on a massive downturn, so now is the perfect time to swoop in and snap up a bargain! Er, probably not. 

Sadly, sensationalist headlines can cause you more headaches than happiness. Don’t believe the hype!

Property news stories often rely on taking small amounts of data out of context when in reality, it’s impossible to talk about Sydney as one big property market. If it were that easy to understand the market, we’d all be property tycoons by now.

As a diligent buyer, you have to become an analyst and look at the situation from every angle, on a micro and macro scale, to truly understand your position within the market. 

Every Sydney suburb has its own identity that impacts market value. 

Sydney is a big city and is made up of hundreds of micro-markets. Every suburb will have its own rules and a market that moves independently, even to neighbouring suburbs. 

Some suburbs are highly desired for the lifestyle, and the property's quality is less of a consideration. Property values seem to resist any market downturn because people want to live there and are willing to pay for the privilege. 

On the flip side, some suburbs have a terrible name for whatever reason, and it’s just stuck. On paper, the property itself is perfect, and the street is lovely. But if the wider suburb isn’t desirable, the property market fluctuations will be very different from those in preferred suburbs. 

Property value is all about location, location, location.

While every suburb has its own unique identity, it pays to get even more specific when evaluating a property’s value. You could have your eye on Sydney’s best suburb, but if the property is on the main road where heavy traffic creates constant noise, you can’t compare it to a house around the corner on a quiet leafy street. Main roads are almost like another micro-market again and won’t accurately reflect the wider property values of the area. 

Supply vs demand will always be the leading factor in market value. 

Some Sydney suburbs are known for freestanding homes with backyards, while others are dominated by apartment living. If you’re searching for a two-bedroom, two-bathroom and one car space apartment in Waterloo, chances are the oversupply means you’ll pick one up for a reasonable price. But if you want the same property in Stanmore, you can expect to pay a premium because there aren’t many to go around. 

Instead of thinking about the market as a whole or getting caught up in the hype, spend time analysing your target suburbs to work out who’s buying there, what properties they are buying and what external factors are impacting their decisions. That’s the kind of activity that helps you write your own property-buying headlines! 

If you need guidance on your search, my team and I are always willing to guide you through Sydney’s micro-markets to help you make excellent property-buying decisions.