Atlas Market Insights

What can we expect from the Sydney property market 2021? INSIGHTS - PROPERTY In a world of uncertainty brought upon us by a global pandemic, Australia’s property market continues to stand strong in comparison to other markets around the world. The Atlas team spoke with Nerida Conisbee, Chief Economist at REA Group to get further insight into the global and national drivers that will have the most impact on the property market in 2021. How is the Sydney market performing? The market is turbo charged at the moment, and the main driver of this is incredibly low interest rates, as well as very high savings rates. The RBA has set the cash rate at 0.1%, and banks are following this and reducing their interest rates. In fact, you can get a home loan with an interest rate of under 2%, which is remarkably low. There is also plenty of competition between banks, as they compete for customers. With new responsible lending laws being relaxed with the start of the pandemic, banks are also far more willing and likely to approve home loans. Some are even offering cash back as a promotion, which is very rare for home loan customers. Another trend to expect in the market is an increase in suburbs considered to be in the luxury market. Through 2020, the number of suburbs that hit a median sale price of $3 million doubled. This number is expected to double yet again in 2021. 6