There is no doubt that the 2022 property market has quickly kicked into gear. Faster than usual.

But what we all want to know is: what next?

We usually stop short of sweeping predictions, but with so many people on both sides of our listing/buying pipeline at the moment, a range of incoming data at BresicWhitney lets us form a clearer outlook.

It can’t always be rosy. And despite what usually makes headlines, doom and gloom isn’t the only other option. Here’s a balanced view of what we see coming.

Prices will stabilise, turnover will increase

‘What will prices do?’ That’s always the biggest question. We’re betting that prices will flatten while turnover (not just stock levels) will shoot up.

Price growth is a normality of our market in which households grow and plan for their futures. But people forget that sellers often need to buy too. With nothing available to buy last year, this major bottleneck further fuelled prices.

Although more stock is coming onto the market, we expect to see increased turnover and a natural equilibrium, with things happening more fluidly.

We talk a lot abut healthy demand, but you need a certain level of homes on offer too.

Supply? You bet it’s coming

We’ve just pre-booked more auctions in January than we’ve scheduled in the past 5 years. For comparison we’re up 80% on last January.

BresicWhitney Director Will Gosse says: “Our projections and future bookings suggest this increased flow won’t let up for the first quarter.

“You can see it happening. Our listings usually sit at around 110 homes available at one time. That hit 180 in supply-heavy months last year, while we’re setting at 130 right now.

“These numbers will surge back up across Sydney but it’s not happening just yet.”

The most likely growth market will be above $5m

It’s a big assertion that won’t excite everyone, but with such phenomenal growth in the recent upswing, most Sydney dwellings will be due to slow down. Naturally.

BresicWhitney CEO Thomas McGlynn says the $5m+ bracket stands out because choice is tight, and the market is made up of pent-up buyers who struggled to find anything in 2021.

“In other categories and the price points below, buyers will have much more choice, equally spread across both apartments and houses,” Thomas says.

“In the higher-priced brackets, homes become more individually regarded, making them harder to compare. That will fuel isolated pockets of activity where demand will continue to outweigh supply.”

Investors are on their way back

Despite the consensus that interest rate rises are coming, the number of new loan commitments are up. They jumped by 89.6% across the year to October 2021, the Australian Bureau of Statistics figures shows. There was $9.73 billion of new loan commitments for investment properties in October alone.

With Sydney relying on overseas migration and including international students to help fill rental homes, the COVID-19 pandemic hit hard. Some investors are now waiting for tenant numbers to swing back, as international borders reopen to students, workers and tourists, providing more buying opportunities.

BresicWhitney Head of Property Management Chantelle Collin says investors are already active amid the current competition.

“As vacancy rates improved across Sydney (our teams went from 5% back to 1% in a matter of months) people are seeing property as a safer option again.”

The current dynamic remains very favourable

At BresicWhitney, properties that failed to sell last year have already launched with more success in 2022.

20 Warner Street, Gladesville was a cancelled auction campaign last year with only other interest above $4m. This year, 10 groups of buyers were at the re-launch, for the best open home of the entire campaign. It just sold for $4.1m.

2707/6 Grove Street, Dulwich Hill was passed in at auction at the end of last year for $930,000. It just sold for $1.06m.

22 Plunkett Street, Drummoyne generated strong interest from new parties. All 3 buyers at the negotiation table were new to the market in 2022. Sold for $2.832m.

25 Nelson Street, Rozelle had 2 auction campaigns elsewhere last year, with no offers. This year it sold in 6 days.

More to come

Keep an eye on BresicWhitney newsletters as more comes to light.

And see all our new listings here.