Data shows that in late 2019 Sydney experienced its fastest market rebound in decades.
So after a positive end to 2019, are there changes on the horizon for the Upper North Shore property market? Let’s explore the top 5 trends we expect to see in 2020.
1. More first home buyers hitting the Upper North Shore property market
A number of factors have combined to help first home buyers get into the property market in 2020. Low interest rates, in particular, have improved housing affordability right around the country, and the Real Estate Institute of Australia claims the market is “seeing the highest percentage of first home buyers in the marketplace in eight years”.
In its September quarter 2019 edition of the REIA Housing Affordability Report, the organisation highlighted the number of loans to first home buyers in New South Wales had “increased to 8,246, an increase of 20.6% over the quarter and an increase of 15.3% compared to the September quarter 2018”.
While the Upper North Shore’s relatively high median of $1.62 million will be out of reach for some new entrants to the market, expect to see more first home buyers on the prowl for property in the area. Particularly those who may have been biding their time as they waited for the right moment to dive in.
2. Downsizers and empty-nesters selling up
In our Chadwick Market Report July 2019, we explored in-depth how the baby boomer population is driving the Upper North Shore property market. As downsizers and empty-nesters move towards retirement, they are looking to sell the family home and find a more suitable – though still spacious – smaller property.
This means the tightly held family homes in the Upper North Shore area are being unlocked and opening up to a new market of buyers. With research finding that 70 per cent of residents who were older than 65 had two or more spare bedrooms in their home, we’re preparing for a rejuvenation of the area as younger families take advantage of the availability of large-sized homes to raise their children in one of the most beautiful parts of the world.
We’re also seeing increased demand for properties suitable for downsizers. Larger penthouse style apartments, oversized apartments and villas, and smaller houses are extremely popular, and we often find there simply isn’t enough supply to keep up with demand, which keeps prices high.
3. A slow start leading to recovery within 12 months
While real estate experts offer some very specific property predictions about whether housing values will rise or fall to a particular percentage point, we prefer to offer a more holistic view of what to expect in 2020.
What we can safely say is that the general consensus among property experts is the market will bottom out end of 2019/early 2020 and then we’ll begin on the road to recovery. Home values are unlikely to drop much further in the Upper North Shore, and while the beginning of 2020 may be slow for the Sydney property market overall, expect to see small growth figures – as even the smallest growth is usually enough to generate excitement among investors.
By New Year 2021, many experts agree that recovery will be in full swing. As one predictor puts it, this period “will be the spring to the housing market winter”.
Read more about what we expect to see in our December 2019 Market Report.
4. Healthy auction clearance rates will see dwelling prices rise
One indicator of an improved property market in 2020 is healthy auction clearance rates. And buyers looking at the Upper North Shore will be happy to see headlines like “Auction data suggests property market to hit highs in 2020”.
Based on some strong auction results in late 2019, buyer confidence in the region looks to be on a firm upswing, and this sentiment will no doubt carry across to the Upper North Shore throughout 2020.
5. New infrastructure easing congestion – and improving liveability
Finally, while it may not have a tangible influence on the Upper North Shore property market, the investment in local and nearby infrastructure will have a positive knock-on effect to the area’s livability and popularity in 2020.
The NorthConnex tunnel is set to reduce traffic along the Pacific Motorway by removing around 5,000 trucks from Pennant Hills Road each day. Completed by mid-2020, you’ll be surprised by just how much of an impact this will have on traffic in the surrounding areas, even as far afield as the Upper North Shore, as drivers take the new route.
Similarly, the new Sydney Metro rail line will aim to reduce commuter congestion in the North Shore area. Rouse Hill is set to receive its extension from Chatswood to the city via Crows Nest, which is expected to broadly improve transport out of the area – a positive for new buyers looking at the Upper North Shore’s potential.
Looking to make your move to the Upper North Shore?
Find the home of your dreams in Sydney’s Upper North Shore with experienced agents who truly understand the area. Contact the team at Chadwick to get started today.