Sydney real estate sentiment continues to rise: ME Bank survey

Sydney real estate sentiment continues to rise: ME Bank survey
Sydney real estate sentiment continues to rise: ME Bank survey

Confidence in the Sydney property market has continued to grow, according to a survey from ME Bank

ME Bank's latest Quarterly Property Sentiment Report, which survey's 1,000 Australians already in the property market, has seen sentiment in the NSW capital soar over the last few quarters.

In the second quarter 2019, only 24 per cent of respondents thought values in the NSW metro area would increase in the next 12 months.

There was a sentiment spike in Q3, but the biggest jump was between Q3 and Q4. Now 57 per cent think values will rise.

Sydney real estate sentiment continues to rise: ME Bank survey

There's similar confidence in the Melbourne area too. 57 per cent of survey participants believe values will rise in the next 12 months.

Andrew Bartolo, ME's general manager home loans, said the past three months have been a critical time for the property market.

“After a period of price declines in Australia’s key property markets, consistent house price increases over the past three months have created a much-needed period of stability, providing more certainty that early price increases weren’t simply a blip in the data.

There wasn't a large spike in sentiment from the first home buyer camp, which Bartolo says suggests the recent house price movements may have marked the end of a unique opportunity to buy ‘at the bottom’.

"The recent uptick in first home buyer activity recorded by the ABS may represent the scramble to get in while they can due to renewed affordability pressures as prices rise," Bartolo noted. 

Sydney real estate sentiment continues to rise: ME Bank survey

The surge in optimism about houses prices over the past six months reflects just how much the external environment has changed since ME launched its first Quarterly Property Sentiment Report in April.

With a relatively solid spring selling season and a number of months’ worth of house value growth under the belt - according to CoreLogic data - there’s more confidence that the upward trajectory of prices will continue, albeit modest increases.”

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

Tags: 
Consumer Sentiment ME Bank

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