The 5 property trends to watch for in 2023

With 2022 coming to a close, I wanted to touch on what you can expect to play out through 2023:

1. Prices to stablise

The prices we’ve seen through Q4 of 2022 are likely to remain fairly stable through 2023. Given the supply challenges buyers are feeling, it is unlikely the inner Sydney regions will see significantly further price declines.

If you’re waiting to ‘bag a bargain’ - they are out there at the moment, you just need to know where to look.

2. Upgraders

Opportunistic upgraders are in the market now and looking to take advantage of finding more for their money.

These upgraders are off loading entry-price properties, but with strong government stimulus in the sub $1.5m bracket (e.g. first home buyers, stamp duty exemptions), supply and demand will meet each other.

3. Interest Rates

The cash rate will likely stabilise through 2023 (albeit, hard to predict what the RBA will do these days). The impact of increasing interest rates is delayed, and is unlikely to be reflected in inflation data until the second half of 2023.

Separately, a large number of borrowers will have fixed rates expire in 2023 and see a significant jump in their mortgage repayments as a result.

If you’re waiting for the market to be flooded with distressed properties, then I think you’ll be waiting a while. People will cut back on everything else first before they sell at a loss - expect to see enrolments in private schools drop for 2023.

4. A grade properties & locations

Well maintained properties, with good floor plans, natural light and locations which provide good lifestyle options (e.g. close to transport, schools, beaches) will continue to outperform.

2022 has proven that houses and apartments with below average building reports and strata reports have struggled to sell, even at a reduced price.

If you buy a lemon, the only market you want to off load it in is a hot market. Don’t buy a lemon (unless you’re making Gin & Tonic!)

5. Population increase

Migration from overseas and the continual return of tourism numbers will place further demand on short term rental properties, and in turn, keep investors in the market.