11.02.2021 Local News

What The End Of Lockdown Means For Sydney’s Eastern Suburbs Property Market

What The End Of Lockdown Means For Sydney’s Eastern Suburbs Property Market

What can buyers and sellers expect in the post-lockdown property market?

Despite the global pandemic, the Sydney housing market has reached new heights this year. We take a look at what the end of lockdown means for the Eastern Suburbs real estate market.

To say that this has been a remarkable year in Sydney real estate would be putting it mildly. Amidst massive buyer demand and the lowest stock level seen in years, price growth has been astronomical, defying lockdowns and a global pandemic. What does the post-lockdown market hold for buyers and sellers in Sydney’s Eastern Suburbs?

How has the Sydney property market performed this year?

According to CoreLogic, the median dwelling price in Sydney rose another 1.5% in October. That means Sydney dwelling values are up by a whopping 28.33% over the course of 2021 so far.

Despite the 107-day lockdown (or perhaps because of it), demand from buyers this year has been phenomenal. We all spent a lot of time at home contemplating our living quarters, and with funds once reserved for travel redirected towards the property, buyers were out in force. At the same time, the number of properties for sale hit the lowest level in years, so prices skyrocketed.

The result? A record-breaking year. Data from Domain shows that Sydney house prices rose 30.4% to September, the fastest annual growth ever recorded, to reach a record median of almost $1.5 million. Unit prices rose by 13.6% over the same period. Our team has also achieved several record-breaking sales in recent months, including this year’s highest house sale and a new suburb record for Paddington.

What is the market doing now?

Spring is traditionally the Sydney property market’s busiest period, and this year is no exception. A handful of key indicators demonstrate that the post-lockdown market is firing on all cylinders.

More stock on the market

One of the hallmarks of the Sydney property market this year has been a lack of properties for sale. Now that lockdown has ended, vendors are returning to the market, and new property listings have increased.

Nationally, according to CoreLogic, the number of properties listed for sale has soared by 47% since September. Here in Sydney, new listings climbed by 23.1% during September and 30.3% since the beginning of October to reach the highest weekly totals of 2021. This is good news for buyers, giving them more options than they’ve had at any time this year.

Healthy auction clearance rates

Auction clearance rates can be a useful indicator of buyer demand, and Sydney’s rates show that the strong buyer demand witnessed before and during lockdown is still in play.

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For example, the clearance rate on Saturday 30th October was 79%; at the same time last year, it was 74%. In fact, Sydney’s auction clearance rate has hovered at above or around 80% since late August. And more properties are being taken to auction too – the week ending 30th October saw 1,144 Sydney homes go under the hammer, up from 974 the previous week and 854 at the same time last year.

Fewer days on market

When properties are selling like hotcakes, it’s a sure sign of a hot market. And with leading property economist Dr Andrew Wilson reporting that the average number of days a Sydney property spends on the market is now only 23 – the lowest monthly result for 2021 and considerably lower than the 27.6 days reported during the lockdown in August – it’s a sure sign that the Sydney market is rocketing along post-lockdown.

Homes in the City and East are selling even more quickly, spending an average of only 18.9 days on the market. Dover Heights even features in the top ten list of fastest-selling Sydney suburbs, coming in at number five with properties there selling after an average of only 16 days on the market.

What can buyers and sellers expect in the current market?

Now that lockdown has lifted, the process of buying and selling property is much simpler for all involved. We’re conducting half-hour open inspections once again, making it so much easier for buyers to see more properties and for vendors to market their property to a larger pool of buyers. We’re seeing buyers, from investors to luxury buyers, viewing (and buying) properties they may not even have looked at under the more restricted inspection rules in place during the lockdown.

Now that we’re in November, the question on everybody’s lips is how will the market finish up the year? Will we see activity slow down once the school summer holidays begin, as in previous years, or will people be making up for time lost to lockdown and continue to buy and sell through to Christmas? Only time will tell, but buyers and vendors who want to have their property transactions wrapped up before Christmas should be making a move sooner rather than later.

What do buyers and sellers need to know?

Buyers now have more properties to choose from than they’ve had all year, with an increase in the number of homes for sale at all levels of the market. But they should be aware that competition remains strong, and homes are selling very quickly, so they need to be ready to act decisively to secure a property.

As the numbers show, prices remain robust, and we are seeing great results for vendors at all levels of the market, from first units to luxury residences. While there are more properties on the market now than there have been at any time this year, there is plenty of pent-up demand and energy among hungry buyers, and properties continue to be snapped up quickly. It’s still a great time to sell.

If you want to buy or sell in Sydney’s Eastern Suburbs before the end of the year, contact my team.