Australian Property Market Shines Globally and Sydney Experiences a Spring Shift

As global real estate value reached a staggering US$379.7 trillion in 2022, Australia’s property market has secured its position among the top ten worldwide, according to a report by Savills World Research. Despite a slight decrease from the previous year, the current value is still an impressive 18.7% higher than pre-pandemic levels in 20191. This gain underscores the real estate sector’s enduring significance, with Paul Tostevin, the head of Savills World Research, noting that despite various market disruptions, “real estate as a whole continues to be the largest concentration of wealth in the world”.

In the same vein, Sydney’s real estate market is witnessing a shift that might offer homebuyers some respite this spring. As Aidan Devine reports, increased listings in several areas, particularly in the northwest and southwest, signify a break from the market’s recent listing slump. This increase is anticipated to give homebuyers more options, potentially easing the recent pressure on prices.

Australia’s Property Dominance

Out of the entire global real estate value, residential property represented the lion’s share, accounting for 76%, or US$287.6 trillion1. These numbers are testament to the attraction of real estate as an investment, especially when compared to other sectors. For instance, global equities were valued at nearly US$98.9 trillion, while all the gold ever mined was pegged at US$12.2 trillion. Notably, Australia has experienced remarkable growth in real estate prices over the past years. In June 2022, the country’s residential market reached an impressive value of A$10 trillion.

Sydney’s Spring Resurgence

Sydney’s property market, known for its fierce competition and skyrocketing prices, is undergoing a change. Increased listings in various suburbs, some even reaching hikes between 23-43%, are anticipated to offer homebuyers more choices. PropTrack economist Angus Moore believes that these increases “would take some of the heat out of some markets by giving buyers more choice”. Ray White economist Nerida Conisbee added, “So far, listing (shortages) have been self-fulfilling. People haven’t listed because there hasn’t been much for them to move to. It will take more homeowners selling for other owners to eventually list”.

However, not all experts see this as a complete turnaround. Adrian Tsavalas, the director of real estate group Adrian William, suggests that while there might be more choices this spring, it might not be the “bargain hunters market” many buyers hope for.

In Conclusion

Both globally and locally in Sydney, the property market remains an attractive and dominant force. While global real estate values emphasize its unwavering appeal, the shifts in Sydney’s market highlight the dynamic nature of the sector. As listings increase and provide more choices for homebuyers, there’s hope for a more balanced market in the coming months.

References:

“Australian property market ranks 10th in the world as global value of real estate hits US$380T” by Henry Thai. ↩ https://thepropertytribune.com.au/market-insights/australian-property-market-ranks-10th-in-the-world-as-global-value-of-real-estate-hits-us380t/ 

“Sydney real estate shift that will help home buyers this spring” by Aidan Devine. ↩  https://www.realestate.com.au/news/sydney-real-estate-shift-that-will-help-home-buyers-this-spring/