Sydney is a melting pot, and it has a little bit of everything. It is New South Wales’ state capital, and houses more than 5 million people. The city’s buzz and energy drives people to explore its streets and sights, and this traffic entices foreign investors as well. Recently hit with a low, Sydney real estate saw a glaring dive in value as overall demand dropped by 25.4% on a year-on-year basis. Surely, everyone must be asking “Is buying real estate in Sydney still worth it?” Let’s take a look at the numbers.
Real Estate in Sydney: By the Numbers
Sydney is struggling a bit at the moment. There has been a decline on demand from buyers, renters, and even foreign investors due to a number of factors, cost of living and price hikes being one of them. As today’s the prices roll down, the market is still finding its bearings and long-time investors may still wait a bit longer until the tides calm down. If you are buying a house in Sydney, the current median price is $890,000, as the demand went down by 25.1% under a year-on-year basis. Apartment demand struggled too, and is down by 26.1% with a median price of $709,750.
While this might be reminiscent of Perth’s decline after the mining boom, Sydney’s economy is far too strong for the whole market to crash. The employment rate is high, the global city receives a steady flow of people looking for a place to stay, and it is important to take note too that not all of Sydney’s areas are experiencing the slide in prices.
(Data from Realestate.com.au)
Why Choose Sydney?
Investors are keen on finding a real estate property in Sydney for a number of reasons. Its cultural diversity is a major factor in the strength of its multilingual workforce, strong in numbers and in skills. The government has shown its commitment towards the city with various legislative and infrastructural supports that makes progress easier for a city that is always striving to be better than it was yesterday. It is also home to world-class centers and headquarters for multinational, knowledge-based companies and businesses, all the while serving as a global leader in banking and finance.
Aside from this, the lifestyle that the city offers can really tempt on to move there. From world-renowned icons like the Opera House and the Sydney Harbour Bridge, to the summer paradise in Bondi beach, the city has an offering for everyone. There are also notable universities in the city like the University of Sydney and the University of Technology Sydney, as well as numerous art galleries and museums scattered here and there.
Aside from the energetic sports vibe and the vibrant culture, the city can also be lauded for its facilities and infrastructures. These are some of the reasons why it is still a top performing city, even though the Sydney real estate market is shaky at the moment.
Although in quite a pickle, Sydney picks up where it left off and continues to strive amidst the low in numbers. The consistent flow of new workers and migrants keep the demand steady, while the recent lows in prices are enticing first-time buyers to invest now. All things considered, Sydney still is a top bet.
Other Popular Suburbs in New South Wales
Other Regions in Australia
Other locations in Australia are equally as desirable as New South Wales. Choose a region below to find out the best locations in the area. If you need information on the real estate buying process for foreigners in Australia, check our Foreign Investor's Guide.
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