Sydney continues to be one of the world’s most expensive real estate markets, yet one of the best places to buy a property worldwide. The city is home to incredible weather, world-class beaches, and excellent job opportunities.

However, the COVID-19 pandemic has caused massive uncertainty for Sydney’s economy. The city plunged into lockdown again in the winter, and investors are fearful about the consequences of the ongoing lockdowns.

Despite the economic turmoil and the first recession in decades — Sydney’s property prices have climbed throughout 2021. That is excellent news for property investors but not the greatest news for new homebuyers.

Let’s take a detailed look at Sydney's current housing market trends.

Recent price movements for houses and apartments

Sydney’s house prices grew in 2020 despite the massive uncertainty surrounding COVID-19, lockdowns.For example, numerous inner suburbs, such as Potts Point, Elizabeth Bay, and Glebe, have seen between 4-7 per cent growth in the previous six months.

Ninety-four per cent of homeowners have seen property growth in the past two years, and 43 per cent of suburbs have seen double-digit annual growth.

Therefore, even though Australia has suffered its greatest recession in modern history — homeowners have gained wealth through their real estate assets.

Sydney’s real estate prices grew 8.2 per cent in the second quarter of 2021. Furthermore, the recent real estate boom is the biggest since 1988, and the current average house price in Sydney is $1.2 million.

All in all, it’s been a fantastic time to be a Sydney homeowner.

Forecast price movements for houses and apartments

Of course, despite Australia’s successful containment of COVID-19, the Delta variant has caused the strictest lockdowns so far this winter. That’s caused a lot of economic uncertainty.

Despite all this chaos, Australia should see double-digit property real estate growth in 2021. That’s a result of increasing family demand, growing demand from investors, and more couples looking for houses in the inner to middle-ring suburbs.

ANZ predicted that Sydney would see real estate growth of 19 per cent this year, but so far, properties have only increased by 15.1 per cent. Banks still expect double-digit growth despite the current COVID-19 situation in the remainder of 2021.

However, high-rise apartments are likely to weaken in 2020. Investors have begun to see the downfalls of investing in high-rise apartments, and international border closures have led to low tenant occupancy rates.

Conclusion

Sydney’s housing prices will grow in 2021 despite the current situation. Australia is likely to enter its second recession in the coming months if Sydney continues its lockdown, but that shouldn’t prevent double-digit growth across the city as life goes back to normal next year.

If you’re looking for help on Sydney’s house and apartment prices, property experts can help you understand the current property prices in Sydney.