What Are Buyers Looking For In Sydney's Goldilocks Market?
Sydney’s residential property market has been dubbed a “Goldilocks market”. Just like the porridge in the age-old children’s story, house prices are now seen as not too hot, not too cold but just about right. So what are buyers looking for in this market?
While there have been media reports of prices in some Sydney metropolitan areas starting to decrease, the downward trend, although welcomed by buyers, is only slight. According to Core Logic, house prices in Sydney are down 1.7 per cent when compared to this time a year ago.
Despite this, buyers remain extremely savvy when it comes to making decisions about where and what to buy and are influenced by many factors to try to “future-proof” their property and reap the benefits of forecast growth.
The most significant factor driving Sydney buyers right now is future infrastructure. There is huge potential in some pockets of metropolitan Sydney, set to benefit from future development and infrastructure projects.
In Sydney’s North West, we are seeing buyers driven by a combination of future planned infrastructure and snapping up off-the-plan housing.
Buyers in this region have done their homework and know the $8.3 billion North West Rail Link is coming and will be operational in 2019. This will dramatically improve travel time to the Sydney CBD. It will also likely have a positive impact on price growth for properties located near to the stations on the new rail link, so the idea is to get in first before this happens.
For many buyers, it works well to buy off-the-plan and secure a property that will be built in 2019 just before the new rail link opens. This way the buyer has at least 12 months to sort out finances, selling existing properties and moving – and will have the benefit of brand new infrastructure and a faster commute time from their new home.
A significant proportion of buyers in the North West region remain drawn to the product – high-quality townhomes and terrace style dwellings. Many families and couples favour the large living spaces and low-maintenance backyards offered by these homes over smaller apartment offerings – and many more are simply priced out of buying a large stand-alone home.
Infrastructure has always been a key factor when buying a home but as new transport links continue to make metropolitan Sydney more connected and affordability issues remain at the forefront of buyers minds – it will become even more influential in helping buyers determine locations for their future homes.