Spring is generally a good time for sellers in Sydney, but with the impacts of COVID-19 outbreak on the overall market sentiment, will housing markets in the city be able to record increased activity?
The diversity in Sydney's property market means that many suburbs have their own intricacies, said Shaun Thomas, residential director at Herron Todd White Sydney.
"As such, an overall increase or decrease in weekly values doesn't paint the full picture, as Sydney's property market runs at different speeds and different timetables," he said.
Sydney's Inner Region was on an upturn before the onset of the COVID-19 outbreak, with its price level almost hitting the 2017 peak. However, activity in the region started to slow during the pandemic, with fewer listings being registered for apartments.
However, Thomas said some agents reported high sales volume in recent months. Some agents even had to turn down listings to avoid flooding the market.
"Typically, the inner city region is an investor-heavy area and it is understandable that there are going to be some investors who need to liquidate. However, in other areas of the inner city — such as Zetland and Waterloo, where many recently completed units are now worth similar to, or less than, their off-the-plan purchase prices — many investors appear to be holding on," he said.
Sellers in the Inner West Region are taking a wait-and-see approach, at least until the overall market sentiment improve. However, Thomas said the region was able to maintain its prices due to the historically-low levels of stock.
"There hasn't been too much of a decline in capital values within the Inner West. Therefore, a rebound is not expected in spring. If the predictions of local real estate agents of more listings in spring are realised, it is more likely that the increased competition could see downward pressure on sale prices," he said.
In the Western Sydney Region, supply has also been relatively low, preventing further falls in house prices. However, listings could potentially increase during the spring-selling season. In fact, some suburbs in the Western Sydney Region are already reporting an increased level of supply for new units.
Meanwhile, supply in the North and North-West Region started to rebound in June, outpacing the record last year. Thomas said this reflects that vendors and buyers have already adjusted to COVID-19 conditions and are gaining confidence transacting in the current market. Listings are also expected to increase in the Southern Sydney Region.
"Without another significant COVID-19 outbreak and as capital values begin to stabilise, we are anticipating listing numbers to continue to rebound," he said.
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