2019 has been an interesting year for property, with the market changing in ways that both challenge and benefit Sydney buyers and sellers.
One thing’s for sure – there’s always something happening in our property market. Here are the 4 trends to be aware of in 2019.
#1: The changing market
By now, you’re sure to have heard about the property market flattening over the past 12 months, with price drops across the board making it more challenging to sell. Recent Domain data shows Alexandria is one of a few Sydney suburbs now at its 2015 price, with a median of $1,372,000 as at May 2019, down from a peak of $1,700,000. The market has been quiet as a result, with vendors unsure whether they should list their homes and buyers taking their time to make a purchase.
Part of this shift in the market was a natural fall from a high peak – some suggested that it wasn’t possible for Australian prices to continue increasing – and partly because of tightened lending conditions in the banking royal commission fallout.
According to the ABC, some property analysts are predicting increasing prices by the end of the year in the wake of Coalition re-election. It’s still possible to go to market and get an excellent result, and engaging an experienced agent who has seen both ups and down can help make it happen.
#2: A win for upsizers
While there are positive aspects to the market for all buyers, none have been as well off as upsizers. Price declines have occurred across the board, meaning the bigger three-bedroom properties or more luxurious homes are now in reach for buyers that couldn’t have made the leap even two years ago. One of the benefits of the current flatter market is that Sydney buyers are saving hundreds of thousands when upgrading, due to the relative discount they were getting from the price drop. This is a particularly strong opportunity for the young families of the inner city.
#3: Location, location, location
That old real estate adage is a cliché, but it rings particularly true when operating in a market that’s suddenly facing some changes. A slower market puts the power back in the hands of buyers, so they can afford to be more selective about their new home, with location often being the main deciding factor for lifestyle and convenience. Proximity to transport, a community feel, plenty of dining options and access to beautiful outdoor spaces all come into play here, so pockets of the city that can combine all factors are still attracting demand and, in some cases, higher prices. Alexandria’s Golden Triangle is one of the inner-city spots that ticks all of these boxes, so there’s still good activity here that’s only set to grow in the future.
#4: Foodie havens creating more lifestyle appeal
There was a time when Sydney buyers were sacrificing their café-hopping lifestyles to buy a home in the inner-city suburbs, but those days are long gone now. Instead, Sydneysiders are flocking to suburbs like Alexandria on weekends to enjoy a delicious brunch, grab top-quality bread and baked goods, enjoy a leisurely drink or dine at one of the city’s best restaurants. The Grounds of Alexandria is an obvious long-time drawcard, but institutions like Fratelli Fresh, Three Blue Ducks and Da Mario are all big attractions, while the Archie Rose gin distillery and local craft breweries like Yulli’s Brews are bringing in new groups too.
The effect on property is an ongoing demand for homes in Alexandria and surrounds, especially for the apartments that provide a great entry point for buyers straddling that young professional and young family line, as well as for investors. Prices are often holding firm in these spots, currently sitting at a $760,000 median price for units in Alexandria.