After an extraordinary two years and a very lengthy lockdown this year, everyone in Sydney is ready to get back to normal and that means enjoying Christmas to the max.
In my family, our celebrations are similar to those in the UK, just with wonderfully warm weather and the beaches rammed with people. So we decorate a pine tree, pack out the shops in the weeks before the big day and then get together with as many cousins and aunts and uncles as we can and eat and drink too much.
This year will be our son Alfie’s first Christmas and I’m sure my wife has already bought him an elf outfit.
New Year’s Eve is a highlight of the year for everyone in Sydney. We’re the first major global city to welcome in the New Year and our annual firework display is legendary. On New Year’s Eve there won’t be any spare space around Sydney Harbour, all venues facing the water charge at least A$500 for a table and you get a sore neck from looking up at the amazing night sky.
For Sydney’s property market, the shift – for some – to hybrid working has translated into significant demand for detached houses with plenty of space, the same dynamic seen across so many countries. The Northern Beaches, for example, was once an area disregarded by many buyers because of its heavy traffic which made a daily commute difficult, but now the work environment has changed, everyone wants to live by the beach and demand for a home there is huge.
Foreign investment into our property market had been limited for a while thanks to the eight per cent surcharge on stamp duty for non-nationals so although Australia was out of bounds to foreigners for most of the past year, it hasn’t had a major impact on the market. Indeed, even without many foreigners, Sydney’s property market has been extraordinary.
Prices of detached houses have risen around 25 per cent on average over the past year, outperforming everything else. In Parramatta, to the west of Sydney, house prices rose 29.3 per cent and apartments by 3.9 per cent – a good example of the ‘race for space’. We’re starting to see the apartment market pick up but the gap between smaller one and two-bedroom apartments and houses has never been bigger.
Looking ahead, it’s hard to predict the future with any clarity. Our GDP is tied so closely to China, important markets in luxury goods, foods and construction materials, which means there are many external factors that could affect us.
I do expect demand for apartments to increase once people see the value there. And if the current trend continues, anyone who owns a detached house in Sydney is in a strong position. A house I was involved with in Cammeray on the Lower North Shore that sold for A$1,530,000 in mid-2020 has been valued a year later at close to A$2,500,000. And just last month a house in Mosman, overlooking Sydney Harbour, sold for close to A$15,000,000. Just in time to watch the fireworks on New Year’s Eve.
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