The property market in Sydney

Shortage of supply and continued interest from Asian buyers are fuelling price growth.

8 April 2014, Words by Lucy Greenwood

 

The residential market in Sydney experienced a surge in price growth in the second half of 2013. The value of the properties held by the SEU grew by 5.2%. Demand is currently outstripping supply, with low interest rates 
and continued demand from 
Asian buyers both contributing 
to continued price increases. Off-plan sales have been particularly strong, with new schemes often selling out on the first weekend of public launch.

The first-time buyer market in Sydney has also been buoyant, aided by grants for new homes, while existing homeowners and investors are fuelling demand in the resale market.

In the office sector, Sydney continues to be the primary location for the head offices of the majority of Australian companies. It is also traditionally the most sought after, a fact highlighted by relatively strong prime property yields and rents.

The city is particularly reliant on finance and business services for tenants and has seen rising vacancy rates resulting from consolidation in the sector. Nonetheless, rents remain relatively stable.

 
 

Subscribe to Savills research

 

Would you like to be notified via email about new property research?