After 4 years, the growth in Sydney and Chatswood property prices finally started to cool – and not grow. It has been an incredible ride. Statistically, the average growth for Chatswood Houses was:
2013 – 13.4%
2014 – 13.1 %
2015 – 27.3 %
2016 – 17.6 &
2017 – 4.2 %
So in theory, if you purchased a house at the start of 2013 for $1,500,000, then in 2017, your house should have been worth $3,000,000….Amazing!
While the Chatswood market was cooling in 2017, prices still remained firm, primarily due to the normal low supply/high demand market. New unit developments in secondary areas were selling for over $20,000 per square metre. This means a 1 bedroom unit is selling for over $1,000,000.
In summary, the slowdown in the market in 2017 was the correction the market needed.
Firstly, we have a short selling season for the start of 2018 as Easter is Friday 30 March. The main pre-Easter market will be a short 8 weeks. We expect a lot of sellers won’t be organised to sell before Easter and anticipate the Autumn market from 7 April to June will be very busy.
We believe a lot of property will still be offered by Auction and expect a success rate of around 60%. Investors are currently not as active as over the last few years because returns have dropped as rents have not kept pace with the capital growth. Owner-occupiers are expected to be the stronger buyers for Chatswood in 2018.
In the 2016 Financial year, there were 190,000 permanent immigrants to Australia. It is important to also understand that almost 50% of these people were already living in Australia under a temporary visa. Either way an estimated 40% of the increase in migration to Australia settled in NSW. As a guide, this means 76,000 people are looking for housing in NSW every 12 months.
With this type of demand and steady employment, property in Chatswood and indeed Sydney should remain in high demand. This demand should ensure property prices hold and possibly grow slightly.
Please note: The above information is just an opinion based on 31 years’ experience in selling Sydney Real Estate – Robert McElhone, Principal, Ray White Chatswood.