That chill you're feeling is more than just the bitter Sydney winter. After months of speculation, it is offical: the Sydney property market has ‘cooled'.
Is the Sydney housing bubble over? This was a question on many people’s mind after housing prices suffered a drop of 0.1 percent in September, the first time housing prices have dropped since April last year.
Sure, housing prices may have peaked but the Sydney property market’s time in the sun is far from over. What is occurring is a shift in what home buyers want and what is in high demand is changing.
An ABS study has found that although overall lending decreased by 5.3 percent in September, the amount of loans written to buy a clean block of land has been increasing. September saw loans for a block of land reach a new record high of almost $8 billion.
That’s right, clean blocks of land are back and in a big way!
Here at Home Demolitions we have always been big fans of the humble clean block of land and are are excited to see Sydney home buyers discovering what we have known all along!
So why all this new found affection for the clean slate? Well, there are several factors at play…
Firstly, supply is still struggling to keep up with demand and a lot of that new supply is in the form of apartments or semi-detached dwellings.
Although there has been an increase in people choosing to downsize their living arrangements home building continues to run at record highs suggesting that the available supply doesn’t match up with the type of housing home buyers want. To put it simply, detached dwellings are in demand and there simply aren’t enough to go round.
The freeing up of government land in Sydney’s western suburbs has also played a role, with previously unavailable blocks of land now up for sale.
And finally, demand for detached housing and clean blocks to build it on has been compounded by the increasing shift toward more apartments and townhouses in all of Australia’s capital cities. This drives competition and means new homebuyers are willing to build if the type of housing they want isn’t available.
For homeowners unhappy with their current dwelling, renovation or a knockdown rebuild are also becoming more popular as a way of avoiding high house prices and stamp duty.
Although we are obviously biased, we advocate for demolition over renovation as it is far quicker than long term renovation and provides you with a clean foundation to build your dream home on without being beholden to what came before. There really is nothing better than a fresh start.
To get an idea of how much it might cost to demolish your home check out our price guide.