NGFarah Market News

2021 was one of Australia’s strongest years, in history, for Real Estate growth.

Property prices increased by an average of 20% - which was a record increase for at least 20 years.

For many months, during 2021, the country was in lockdown and the market was unpredictable.

2022 started strong, even though, property prices peaked in Sydney only 3 months earlier.

The Reserve Bank of Australia had hinted that interest rates may go up earlier during the year as inflation started to rise, not only in Australia, but also throughout the United States of America and Europe.

January, February & March 2022, was still strong selling months and at NGFarah. We sold just under $200 Million worth of property during that period.

The Reserve Bank of Australia has increased interest rates 7 times since May 2022. Rates have increased by approximately 3%, which has sent property prices in a downward trend for the balance of 2022.

According to most property experts, the market in Sydney has declined by up to 15% across the board.

Building costs have escalated by up to 30%, which has put a lot of pressure on the construction and development business.

On a positive note, for property investors, the rental market has gone from strength to strength throughout Sydney - with the vacancy rate now less than 1%.

The State Government has recently introduced new Legislation to prevent agents from having bidding wars for rental properties.

During 2022 rents have increased by up to 25%, causing concern and frustration amongst potential tenants. This trend is expected to continue during 2023, as students and tourists return in full force.

The decline in prices has been a win for property purchasers, even though they are paying higher interest rates, we believe it is still more favorable for Buyers currently now than it was 12 months ago.

Sydney is a World-Class City and one of the most expensive Cities in the world for Real Estate.

We believe this trend will continue in 2023.