Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Sydney's property market is included in our pack
Are you curious about the future of Sydney's property market? Wondering which trends will shape your buying decisions in 2025? Eager to discover the key factors that could influence property values?
We will lay down recent insights, ici no guesswork, we rely only on solid data.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Australia Property Pack
1) Chinese investors will keep buying Sydney real estate especially new developments
Chinese investors are keen on Sydney's real estate market, especially new developments.
In the July–September 2023 quarter, they poured a hefty $700 million into Australian residential properties, underscoring their major influence. This isn't just a one-off; it's part of a larger trend where foreign buyers are snapping up properties in Sydney.
Foreign buyers make up about 10 to 15 percent of new housing sales in Sydney. When it comes to new apartments, this figure jumps to 25 percent. For off-the-plan apartments, foreign investors can account for up to 50 percent of sales, showing a clear preference for new developments.
Even with restrictions on capital outflows from China, wealthy Chinese families are still investing heavily in international real estate. They favor stable and developed markets like Australia, which was the top overseas destination for Chinese property seekers in the first half of 2023.
This trend is expected to continue, with a significant number of people predicted to move from China to Australia between 2023 and 2025. Australia's appeal lies in its stability and development, making it a prime choice for Chinese investors looking to secure their assets.
Sources: Prime Capital, Hoole, East West Property
2) Sydney property prices will stabilize with rising interest rates cooling the market
In Sydney, rising interest rates have been cooling the property market.
Back in 2023, when interest rates shot up, Sydney's house prices took a noticeable dip. Although they bounced back close to their peak, by the end of 2024, the growth had slowed significantly. This was a clear sign that the market was adjusting to the new financial climate.
By November 2024, the median house price in Sydney had dropped by 0.4%, showing a steady cooling trend. This shift pushed quarterly gains into the negative, even though the annual change in property prices was still positive at 3.3%. It was evident that while prices were still on the rise, the pace was much slower.
Consumer surveys from 2024 revealed that the market was cooling as interest rates climbed, with both buyers and sellers becoming more cautious. The Reserve Bank of Australia had set rates at 4.35%, creating a challenging environment for buyers and homeowners. This high-rate scenario was causing some stress, but financial experts didn't expect any more rate hikes.
In fact, there was talk of potential rate cuts in the first half of 2025, which could bring some relief. This anticipation was based on the belief that the market needed a breather after the rapid rate increases. Buyers and sellers were watching closely, hoping for a more stable market environment.
Sources: OpenAgent, API Magazine, Property Update
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3) Affordable housing initiatives will curb price hikes in specific Sydney areas
Affordable housing initiatives are gaining momentum with increased government funding.
In 2023 and 2024, the Australian Government has allocated a hefty $1.9 billion for state affordable housing services. This funding is a game-changer, as it helps build more affordable homes, easing the pressure on housing prices in certain areas. Imagine more homes popping up, making it less of a scramble to find a place.
Take New South Wales, for example. The government has committed over $1 billion to the Social and Affordable Housing Fund. This isn't just about numbers; it's about creating new dwellings, both social and affordable. By boosting the supply of affordable housing, these initiatives aim to balance the demand and supply in the housing market, which is crucial for keeping prices in check.
There's also a noticeable uptick in the construction of new affordable housing units. The NSW Social Housing Accelerator is a prime example, planning to deliver hundreds of new dwellings by 2026. This means more options for people, which can help stabilize local property prices. When there are more homes available, prices are less likely to skyrocket due to limited availability.
These efforts are not just about numbers and buildings; they're about creating a more balanced housing market. With more affordable homes, the pressure on prices can ease, making it a bit easier for potential buyers. It's like having more seats at a concert—less competition means less stress and more choice.
Sources: Treasury NSW, Australian Government Budget, State of the Housing System 2024
4) Rental prices will rise in high-demand areas due to limited supply and strong demand
In 2023 and 2024, Sydney's rental market has seen dramatic shifts.
High-demand areas like the Eastern Suburbs and Vaucluse are experiencing a rental boom. In Vaucluse, for instance, the median weekly rent hit $2,588, making it the priciest suburb in Australia. This surge is largely due to low vacancy rates in these sought-after neighborhoods.
Sydney's rental scene is in a bit of a crisis, with a severe shortage of available properties. This scarcity has pushed rents up citywide. By the September quarter of 2024, house rents reached a record $775 per week, reflecting the intense competition for homes.
Adding fuel to the fire, Sydney continues to draw in new residents. Even though net overseas migration dipped to 446,000 in 2023-24, the city remains a magnet for newcomers. The influx, especially of temporary student arrivals, has further cranked up the demand for housing.
For those eyeing a property investment, it's crucial to know that high-demand areas will see rental prices increase due to limited supply and strong demand. This trend is particularly evident in places like the Eastern Suburbs, where the rental market is fiercely competitive.
Sources: Property Update, Sydney Realtor, Australian Bureau of Statistics
5) Sydney rental yields will rise as demand outstrips supply
In 2023 and 2024, rental prices in Sydney soared, with house rents hitting a record $1,040.30 per week.
What's driving this surge? Well, rents jumped by 3.3% over the past year, showing just how much people are clamoring for rental homes. Sydney's rental market is feeling the squeeze with ultra-low vacancy rates, thanks to a mix of high immigration and not enough new homes being built.
On average, renting a place in Sydney costs about $726 per week. If you're eyeing suburbs like Vaucluse, be prepared to pay top dollar, as these areas are among the priciest, underscoring the intense pressure on rental availability.
Looking ahead, Greater Sydney's population is expected to swell by 1.4 million by 2041, mainly due to net migration. This influx is a big deal because it means more people are competing for the same number of homes, pushing rents even higher.
With more folks moving in and not enough places to live, it's no wonder rental values are climbing. The demand for housing is outstripping supply, and that's a trend that's likely to continue.
Sources: Property Update, NSW Department of Planning
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6) Suburban rental yields will increase as families move to larger homes outside the city center
Families are increasingly choosing to move from the city center to the suburbs, especially in places like Sydney.
In suburbs such as Auburn and Mays Hill, rental yields are on the rise, with Auburn offering a yield of 6.3% and Mays Hill at 5.9%. These figures make these areas particularly attractive to investors. The demand for housing in these suburbs is expected to grow, with Auburn's population projected to increase from 11,546 in 2024 to 17,419 by 2046.
The pandemic has played a significant role in this shift, as families now seek more space and better living conditions. This change is evident in the growing interest in suburban properties and a preference for larger homes. Government investments in infrastructure, like the Parramatta light rail, are enhancing the appeal of these suburban areas by improving accessibility and boosting property values.
Suburban living offers families the chance to enjoy larger homes and more outdoor space, which is a major draw. As families prioritize space and comfort, the suburbs are becoming a more desirable option. This trend is not just about moving away from the city but about finding a better quality of life.
Investors are taking note of these changes, as the suburbs promise not only higher rental yields but also potential for long-term growth. The shift towards suburban living is expected to continue, driven by the desire for more space and improved living conditions.
With these factors in play, suburban areas are set to see a rise in rental yields as families continue to seek larger homes outside the city center. This trend is reshaping the real estate landscape, making suburbs a hotspot for both families and investors.
Sources: Aus Property Professionals, TenantCloud, Property Update
7) Green spaces and parks will drive property demand in Sydney
In 2023 and 2024, green spaces and parks have become a top priority for property buyers.
People are increasingly aware of the health perks of living near green areas. Imagine waking up to the sound of birds instead of traffic; it's a lifestyle choice that's catching on. Studies highlight that being close to parks can boost both mental and physical health, a factor more buyers are weighing when picking a home.
Interestingly, homes near green spaces often come with a higher price tag. CoreLogic's research in Sydney's bustling Eastern Suburbs and Inner City shows a clear link between property prices and park access. So, if you're eyeing a place near a park, it might be a smart investment.
Urban planners are catching on too, with policies now focusing on creating more green spaces. Take Sydney's Blue Green Grid plan, for example. It's all about protecting and expanding these natural areas. This government commitment not only makes properties near parks more appealing but also assures buyers that these spaces will stick around and even grow.
For those considering a move, this trend means that green spaces are not just a nice-to-have; they're becoming essential. As cities grow, the demand for homes near parks is likely to rise, making them a hot commodity.
So, if you're in the market, keep an eye on properties with easy access to parks. They offer more than just a pretty view; they promise a healthier lifestyle and a potentially better return on investment.
Sources: CoreLogic, Property Council, Total Environment Centre
8) Community-focused living will boost demand for properties with shared amenities
In recent years, the desire for community-oriented living has become a major trend, especially in cities like Sydney.
In 2023 and 2024, Sydney saw a surge in demand for co-living spaces, with over 90% of Australia's co-living activity centered there. This boom is largely due to a critical housing shortage and a planning landscape that favors such developments. People are looking for more than just a place to live; they want a community.
Developers are catching on, ramping up projects that offer shared amenities. Take Sydney developer Freecity, for instance, who planned a $200 million co-living project at Macquarie Park. This project includes cinemas, meeting rooms, a gym, and a pool, catering to students, professionals, and international migrants who crave convenience and accessibility.
Properties with communal facilities are fetching higher sales and rental prices, underscoring this trend. In April 2024, a co-living development in Surry Hills sold for A$15.5 million, showing just how much interest there is in these types of properties. The buzz around shared spaces is also fueled by media coverage and social media, which highlight the benefits of enhanced residential experiences and community interaction.
These developments are not just about living spaces; they're about creating a lifestyle. The shared amenities make it easier for residents to connect, fostering a sense of community that many find appealing. It's not just about having a gym or a pool; it's about the social opportunities these spaces provide.
As more people seek out these community-oriented living options, the market is responding with innovative solutions. Developers are increasingly focusing on creating environments that offer both privacy and community, meeting the needs of a diverse clientele. This trend is reshaping the way people think about urban living.
Sources: JLL Insights, JLL Newsroom, Scape Sydney Central
Everything you need to know is included in our Property Investment Pack for Sydney
9) Foreign buyers will target luxury properties in prime spots driving prices up
Foreign buyers are zeroing in on luxury properties in prime spots, pushing prices up.
In 2023, foreign investment approvals for Australian residential real estate hit AUD 15 billion, with a big chunk going to Sydney. This cash flow is mainly targeting high-end properties, as overseas investors poured $5.3 billion into Australian real estate, focusing heavily on Sydney's luxury market.
During the second quarter of 2023, Sydney experienced a boom in super-prime property sales, with 38 sales over $10 million. Over the year ending March 31, 2023, Sydney was ninth globally for super-prime sales, with 76 transactions totaling $1.23 billion. The average price tag? A cool $16.2 million, showing just how hot the demand is in these prime areas.
Real estate agencies in Sydney are buzzing with international interest, especially for luxury homes. Properstar lists 219 luxury houses for sale in Sydney, underscoring a thriving market for high-end properties. The Federal Treasury's data reveals that international buyers are snapping up higher-end homes in posh suburbs like Bellevue Hill and Bondi Beach, further inflating prices.
Sources: Unicorn Buyers Agents, Forbes Global Properties, Properstar, Ambyy
10) New zoning laws will boost high-density developments in key areas impacting property values
Sydney's zoning laws are changing, especially in suburbs like Bankstown, The Bays, and Crows Nest.
These areas are part of a plan to build up to 45,000 new homes by 2024, focusing on spots near transport hubs. This means more people can live close to work, making commuting easier and potentially boosting the local economy.
Take Crows Nest, for example. Here, the land is now set for buildings as tall as 62 storeys, paving the way for nearly 5,900 new homes and about 2,500 jobs. This kind of development is expected to draw in more residents and businesses, which could push property values up as demand and infrastructure improve.
Looking at other cities like Melbourne, we see that rezoning can really hike up property values. A site there went from being worth $120 million to $400 million after a zoning change. This trend suggests that Sydney might see similar boosts in property values as more homes are built.
For those considering buying property, these zoning changes could mean a good investment opportunity. As more people flock to these newly developed areas, the demand for housing is likely to rise, potentially increasing property values.
Keep an eye on these developments, as they could shape the future of Sydney's real estate market, making it a hot spot for both living and investing.
Sources: Smart Property Investment, Your Say North Sydney, Reserve Bank of Australia
11) Interest in large family homes will drop as people choose smaller manageable properties
In Sydney, property prices have skyrocketed, making large family homes a luxury few can afford.
With the median house price hitting $1.6 million, many are rethinking their options and leaning towards smaller, more budget-friendly homes. This shift is partly due to a demographic change where smaller households are becoming the norm. New South Wales is seeing a population boom, thanks to immigration, but the number of new homes isn't keeping up.
Baby Boomers are also playing a role in this trend. Many are choosing to downsize, not just for a simpler lifestyle, but also to help their kids buy homes. This means more people are looking for smaller properties that are easier to manage.
Another reason for the shift is the high maintenance costs of larger homes. In a city like Sydney, where housing is in short supply, keeping up with the expenses of a big house can be daunting. Smaller homes, on the other hand, are not only cheaper to buy but also easier on the wallet when it comes to upkeep.
In essence, the appeal of smaller homes is growing as they offer a more practical and affordable solution for many. The trend is clear: smaller, manageable properties are becoming the go-to choice for a lot of buyers.
Sources: Property Update, Domain News, The McGrath Report 2025
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12) Townhouses will become popular for their perfect mix of space and affordability
In Sydney, townhouses are gaining popularity as a smart choice for homebuyers.
With property prices in Sydney soaring by 28% since 2019, many find standalone houses out of reach. This has led to a surge in demand for medium-density housing, like townhouses, which offer a sweet spot between space and affordability. In 2024, the Sydney unit market outperformed the house market, showing a clear shift towards these more budget-friendly options.
Urban planning is also nudging this trend along. The NSW Department of Planning is pushing for higher density living in prime areas, which means more townhouses are popping up. This fits perfectly with what buyers want: affordable homes with some outdoor space.
Another reason townhouses are appealing is their lower maintenance costs. Unlike standalone homes, townhouses often come with shared responsibilities and fees for exterior upkeep, making them a cost-effective choice. This is especially attractive for those who want to cut down on maintenance hassles.
Demographic changes are playing a part too. With more people living in smaller households, townhouses are ideal for individuals and small families. They offer more room than apartments but without the hefty price tag of a standalone house.
So, if you're looking for a home that balances space and cost, townhouses might just be the perfect fit. They offer a practical solution for modern living, especially in a city where property prices are on the rise.
Sources: Urban.com.au, NSW Planning, MJS Construction Group
13) Eastern suburbs will stay in high demand for their beaches and lifestyle amenities
The eastern suburbs of Sydney are always in high demand because of their proximity to beaches and lifestyle amenities.
In 2023 and 2024, these areas were already famous for their sky-high property prices. For instance, Vaucluse and Bellevue Hill had median house prices of $8.55 million and $10.28 million, respectively. This shows a strong desire to live in these areas, driven by their unique offerings.
Another reason for the popularity is the consistently low vacancy rates in the eastern suburbs, which were at 0.9% in the past. This low rate means rental properties are in high demand, making it tough for renters to find available homes. Such a competitive market is a clear sign of the area's desirability, often linked to its coastal location and lifestyle benefits.
Surveys and real estate reports highlight a strong buyer preference for coastal living. This preference is a significant draw for the eastern suburbs, as they offer easy access to beaches and a variety of lifestyle amenities. The area's appeal is further enhanced by increased investment in infrastructure and amenities, including new developments and upgrades to existing facilities.
Living in these suburbs means enjoying a lifestyle that combines the best of both worlds: urban convenience and beachside relaxation. The eastern suburbs are not just about the beaches; they also boast top-notch schools, trendy cafes, and vibrant shopping districts.
With ongoing investments in infrastructure, the eastern suburbs are set to become even more attractive. New developments and upgrades to existing facilities are making these areas even more appealing to potential buyers and renters.
Sources: Jason Boon, Realestate.com.au, Jason Boon
14) Homebuyers prioritize properties with flexible spaces for changing lifestyles
Homebuyers are now keen on properties with flexible living spaces to suit their evolving lifestyles.
This change is largely due to the rise in remote work trends, with many people now working from home. In 2023 and 2024, employers embraced hybrid work models, letting employees split their time between home and the office. This shift has made adaptable living spaces more appealing.
The popularity of modular furniture and home renovation products has also surged, as people look for practical and long-term value. In 2024, homebuyers wanted furniture that could easily switch functions, reflecting a broader trend. Consumer surveys showed a strong preference for working from home at least part-time, highlighting the need for flexible spaces.
Real estate listings are catching on, showcasing properties with flexible floor plans. Take the Lumia Apartments in Sydney, for example, which offer customizable rooms that can be used as home offices or playrooms. Interior design magazines are also on board, frequently featuring multi-functional rooms and transformable furniture.
In the countryside, this trend is even more pronounced. Buyers are looking for homes that can accommodate both work and leisure, with spaces that can easily transition from a home office to a family room. This flexibility is crucial for those who want to enjoy the tranquility of rural life without sacrificing modern conveniences.
As more people seek a balance between work and personal life, the demand for homes with adaptable spaces is expected to grow. This trend is reshaping the real estate market, with developers and designers focusing on creating homes that offer versatility and comfort.
Sources: Realestate.com.au, Outkast, Kaiko Design Interiors
Everything you need to know is included in our Real Estate Pack for Sydney
15) Luxury property prices will rise as wealthy buyers seek exclusive locations
Luxury property prices in Sydney are on the rise as wealthy individuals hunt for exclusive spots.
There's been a noticeable uptick in the number of high-net-worth individuals, both globally and in Australia. In 2024, Australia saw an 8.7% increase in these wealthy individuals, who now control a whopping $3.3 trillion in assets. This surge in wealth means more people are eyeing luxury properties, naturally driving up demand and prices.
Sydney's prime locations are hot commodities right now. Over the past year, home prices in Sydney have jumped by 4.5%, hitting new highs. High auction clearance rates show that buyers are keen, and with limited land available in Sydney's exclusive suburbs, the demand is only getting stronger. The slowdown in construction isn't helping, as it keeps the housing supply tight.
International buyers are also joining the fray, eager to snag prestigious Sydney addresses. The personal luxury market is thriving, thanks in part to tourism spending and the steady interest from affluent international buyers. This added international demand is another reason why prices are climbing.
Sources: Morningstar, Property Update, Burberry Annual Report
16) Sydney's metro expansion will boost property values in newly connected areas
The expansion of Sydney's metro network is expected to boost property values in newly connected areas.
In the past decade, suburbs along Sydney's metro line have seen a 49% increase in capital value, outpacing non-metro suburbs by about 5%. Take Castle Hill, for instance, which enjoyed a 72% capital growth over the decade leading up to 2023, far surpassing nearby areas like Baulkham Hills. This trend indicates that newly connected metro areas could experience similar growth.
Experts from the Property Council of Australia view the metro expansion as a major catalyst for sustainable growth in Sydney. They point out that rezoning and infrastructure development around metro lines have spurred demand and increased property values. Surveys reveal that homebuyers often prioritize being close to metro stations, which heightens interest in properties near new lines.
For those considering buying property, it's worth noting that areas newly linked to the metro are likely to become more desirable. The convenience of metro access is a significant draw for potential buyers, making these areas attractive investments. As the metro network expands, expect to see a ripple effect on property values in these newly connected suburbs.
Investors and homebuyers alike should keep an eye on these developments, as the metro expansion could lead to lucrative opportunities. The increased connectivity not only enhances the appeal of these areas but also promises long-term growth potential. With the metro network set to grow, the property market in these regions is poised for exciting changes.
Sources: Domain News, Real Estate Business
17) New infrastructure projects will boost interest in Sydney's western suburbs by improving connectivity
The western suburbs of Sydney are becoming a hot spot thanks to new infrastructure projects improving connectivity.
In recent years, both the Australian and New South Wales governments have poured $4.4 billion into the Western Sydney Infrastructure Plan (WSIP). This hefty investment has been a game-changer, making travel smoother and unlocking the region's economic potential. With better roads and less congestion, getting around is now a breeze.
Big transport projects like the Sydney Metro West and the Western Sydney Airport are also making waves. By June 2024, the tunneling for the Sydney Metro – Western Sydney Airport project was wrapped up, creating a key transport link for Greater West. Meanwhile, the Western Sydney International Airport, which was over 80% done by mid-2024, is set to bring a ton of jobs and give the local economy a serious boost.
As property prices in central Sydney climb, more buyers are looking west for affordable options. This shift is fueled by the government's massive infrastructure investments, making these suburbs more attractive for living and working. The NSW government has also thrown $139.5 million into upgrading the bus network, ensuring public transport is reliable and accessible across Greater Sydney, including the western suburbs.
With these developments, the western suburbs are not just a place to live but a thriving community with enhanced transport options and economic opportunities. The buzz around these areas is growing, and it's easy to see why. The combination of improved infrastructure and affordability is drawing in more interest from potential buyers.
So, if you're considering a move, the western suburbs of Sydney might just be the perfect spot, offering a blend of convenience and opportunity. The ongoing projects and investments are setting the stage for a vibrant future, making it a smart choice for anyone looking to settle down or invest.
Sources: Investment Infrastructure, Sydney Metro, Badgerys Creek Property, Bus News
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18) Buyers will prioritize eco-friendly homes driving demand for sustainable real estate in Sydney
In recent years, there's been a noticeable shift towards sustainable living in the housing market.
Back in 2023 and 2024, interest in eco-friendly homes surged across Australia, especially in Sydney. The National Association of REALTORS' 2024 Sustainability Report highlighted that nearly half of the respondents noticed their clients were keen on sustainability. This reflects a broader societal move towards eco-conscious living.
Green building certifications are on the rise, with the Green Building Council of Australia reporting over 800 Green Star certifications in the 2022-23 financial year. This 80% increase from the previous year shows a growing demand for sustainable homes, particularly in Sydney. Many real estate listings now include green data fields to showcase eco-friendly features.
The media has played a big role in raising awareness about climate change, which has driven consumer demand for sustainable homes. Government incentives for energy-efficient upgrades have also encouraged more people to consider eco-friendly options. Stricter building codes focusing on sustainability are pushing the industry towards more sustainable practices, making these homes more appealing.
Sources: GBCA Media Releases, NAR Sustainability Survey, GBCA Report
19) Virtual reality tours will dominate property marketing and sales in Sydney
Virtual reality tours are reshaping how we explore real estate.
Since 2023, VR technology has become more accessible and affordable, making it a popular tool for real estate agents. This shift is part of a larger trend, with the global VR market experiencing a rapid annual growth rate of 27.5% through 2030. As a result, more agents are using VR to showcase properties, offering potential buyers a more immersive experience.
Previously, over 130,000 real estate agents were already using VR to show homes, and this number continues to rise. Homebuyers are increasingly drawn to virtual tours, with 67% preferring listings that include them. This preference is evident in the engagement metrics, as listings with virtual tours receive 87% more views and keep potential buyers engaged for longer periods.
The COVID-19 pandemic played a significant role in accelerating the adoption of virtual solutions in real estate. Many agents and property owners turned to virtual tours as a practical alternative to in-person showings. The convenience and thoroughness of virtual tours have made them a favored option for both buyers and sellers, offering a comprehensive view of properties without the need for physical visits.
Virtual reality tours are not just a temporary trend; they are becoming a staple in the real estate industry. As technology continues to advance, we can expect virtual tours to become even more sophisticated, providing an even more realistic and detailed view of properties. This evolution will likely change how properties are marketed and sold, making virtual tours a standard part of the home-buying process.
Sources: Business Insider, PhotoUp, Beepo
20) Environmental rules will boost demand for energy-efficient homes and affect property values
In 2023 and 2024, the real estate market has seen a noticeable shift towards energy-efficient homes.
Environmental regulations are a big driver of this change, making energy-efficient homes more appealing. In Sydney, these homes are selling 4% faster than traditional ones, with a price jump of 23.1% or $330,250, according to Domain's Sustainability in Property 2024 Report. This trend is not just about saving the planet; it's also about boosting property values.
Government incentives are sweetening the deal. Programs like the Victorian Energy Upgrade (VEU) and the Home Energy Efficiency Retrofits (HEER) scheme in NSW offer financial perks for homeowners who make energy-efficient upgrades. These incentives make it more attractive for homeowners to invest in energy-efficient technologies, which in turn boosts demand for such homes.
People are also getting more into sustainable living. The Green Building Council Australia notes that Australians are increasingly aware of the health, environmental, and cost benefits of energy-efficient homes. This awareness has led to a surge in demand for properties that offer these benefits, further driving up their value.
Energy-efficient homes are generally valued 5-10% higher than those without sustainable features, as noted in the Australian Housing Outlook 2022-2025. This increase in property value is a direct result of the growing demand and the perceived long-term savings on utility costs. Stricter environmental building codes, like the mandatory 7-star NatHERS rating for new homes, are pushing this trend even further.
These regulations are making energy-efficient homes more desirable, impacting property values significantly. As more people recognize the benefits, the demand for these homes is likely to keep rising.
Sources: Domain, Energy Makeovers, Australian Housing Outlook
Everything you need to know is included in our Property Pack for Sydney
21) Coastal properties face more scrutiny from rising sea levels and environmental issues
Coastal properties are facing more scrutiny due to rising sea levels and environmental concerns.
In recent years, global sea levels have risen over 10cm, and this trend is expected to continue. This is a big deal for places like Australia, where the Department for Environment and Water is keeping a close eye on the situation. Rising sea levels pose serious risks to coastal communities and infrastructure, making it a hot topic for anyone considering buying property by the sea.
Take Sydney, for example. The city is seeing more frequent and severe coastal flooding events. Research suggests that over 8000 addresses in New South Wales could be affected by coastal erosion by 2100. This is a major concern for residents and policymakers alike. The NSW government warns that sea level rise could lead to permanent flooding of low-lying areas and increased erosion of sandy beaches, threatening both infrastructure and ecosystems.
Insurance companies are reacting to these risks by hiking premiums or even refusing coverage for coastal properties. This is because homeowners insurance costs have become significantly higher than the national average in some areas. It's a clear sign of the growing concern over coastal erosion and flooding.
Local councils are also stepping up by implementing stricter regulations and zoning changes. Their goal is to manage coastal development better and protect vulnerable communities and ecosystems from the impacts of sea level rise. This means that if you're looking to buy a coastal property, you might face more rules and higher costs.
So, if you're thinking about investing in a coastal property, it's crucial to be aware of these challenges. The landscape is changing, and coastal properties will face increased scrutiny due to rising sea levels and environmental concerns.
Sources: Department for Environment and Water, NSW Government Climate Change Impacts, Policygenius
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.