How did the NSW property market perform in the 2024 financial year?
The latest update from CoreLogic's Hedonic Home Value Index, released on July 1, 2024, provides a comprehensive view of the property market in New South Wales. Here are our key take-outs;
1. Market Performance: NSW continues to exhibit robust growth in property values, maintaining an upward trajectory despite the economic challenges faced.
Positively, the growth is evident across most regions and all dwelling types.
2. Sydney Metropolitan Area: Sydney, grew at 6.2% over the financial year. This rise is indicative of strong demand from both local buyers and investors. Some of the outer regions, particularly relating to units, struggled more than the blue ribbon regions, however the market has performed well, with the forecast for this to continue.
3. Regional NSW: Beyond Sydney, regional areas of NSW have also experienced good growth at 4.1% for the year. Larger centres like Newcastle and Wollongong have played a heavy hand, however smaller regional areas also continue to tick along.
4. Market Drivers: The key driver of this growth is the housing supply shortage, however the economy has continued to perform well despite rate and cost of living pressures. Positive signs are ahead if the government can deliver on supply shortage policies.
5. Demand-Supply Dynamics: Despite robust demand, the supply of housing remains constrained in many parts of NSW, particularly in desirable urban locales. This imbalance has contributed to price appreciation and competitive bidding among prospective buyers.
6. Future Outlook: Looking ahead, analysts anticipate a continuation of these trends, albeit with some moderation in growth rates as affordability pressures and potential adjustments in monetary policy come into play. The market's resilience, however, suggests that NSW will remain a favourable destination for property investment and homeownership.
In conclusion, the July 2024 CoreLogic report underscores NSW's vibrant property market, characterised by substantial growth in both metropolitan and regional areas.
