Sydney still likely to see positive growth in 2016

By |
While Sydney may have seen its median house price suffer a record fall recently, the head of a major real estate franchise believes homes in the harbour city will still be more expensive in 12 months’ time.

Angus Raine, executive chairman of Raine & Horne, said real estate in Sydney will continue to grow in 2016, albeit not at the same rate it has in recent years.

“The market might not achieve the double digit returns of the past three years; however, many Sydney real estate markets will achieve capital growth by the end of 2016,” Raine said.

“Many of the same fundamentals remain in play, such as Sydney's continued population growth, as well as our strong economy, improved employment figures, and low interest rates. Around 50,000 people move to Sydney annually and they all need somewhere to live, while there is a good chance we'll see more rates cuts in the middle of the year,” he said.

Rich Harvey, managing director of buyer’s agency Property Buyer, agrees with Raine’s outlook for 2016.

“It’s definitely not going to be the same as it was but we are going to see some growth this year,” Harvey said.

“It will probably be around the 5% mark, though it’s hard to put a single number on it because there are so many different markets across Sydney and some of them are vastly different,” he said.

Harvey said Sydney's suburbs with mid-tier price ranges would likely be the best performing suburbs this year, helped by attention from buyers looking to upgrade their primary place of residence. 

While he also agreed that Sydney’s employment prospects and population growth will help the city’s market continue to improve, Harvey said there is another major positive in the Sydney market at present.

“There is a massive amount of money being spent on infrastructure, especially transport infrastructure, in Sydney at the moment and that’s a great thing for the market.

“The government has received a huge windfall from stamp duty in the last few years so they’ve got the money for projects like the light rails and metro systems and hopefully we see even more money directed to projects like those.”

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : bligh park , nundah , menai , nightcliff , torrensville

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here