House prices in Sydney are seeing an all-round decrease, except for key ready homes. Why is this? And what could it mean for foreign buyers?
A little summary of the Australian property market in the last few years: prices went up during the pandemic; they then reduced; and are now showing signs that they could be steadying. Moreover, in Australia, the property market behaves differently from region to region. After seeing the greatest property boom, Sydney is now seeing the greatest reduction in property prices. Indeed, some areas of Sydney have seen property prices fall back to pre-pandemic levels.
Key ready homes are prized in Sydney’s real estate market.
However, key ready Sydney homes are flourishing. If you’re unfamiliar with the term, key ready simply means that a property is ready to move into. You won’t have to embark on any renovations before move in day. Despite the fall in property prices across Australia, key ready homes are attracting a premium. At the start of the year, young buyers were upsizing and purchasing homes in need of renovation, just so that they could have a slice of Sydney. But since then, the tide has turned, people no longer have the energy or the funds to oversee a renovation. An increase in the cost of building materials and not enough tradespeople has made renovating too expensive for many.
What does this mean for you?
As a foreign buyer who has not had to experience the turbulence of the Australian property market for the last few years, you may be able to come at it with more vitality than local buyers. Given the decreasing prices in properties that are not key ready, it is a great opportunity for an international buyer to swoop in, purchase, and renovate. You’ve just got to be wary that it may take time.
If you are an investor, then you could turn weary homes into key ready ones for a profit, and your property will be quickly lapped up by local Australians.
Or, if you’re not too fussed about how upgraded your home is, this is a prime time to find your Sydney turf for less.
If you are interested in purchasing property in Australia, you may find our guide useful.
