Singapore and Hong Kong buyers set to underpin Sydney’s prestige market

Buyers from Hong Kong and Singapore will help propel Sydney’s residential and commercial markets into 2022, according to Raine & Horne’s Ric Serrao.

The Announcement:

Buyers from two of Asia’s prominent global cities will help to propel Sydney’s residential and commercial markets into 2022, according to Ric Serrao, Principal of Raine & Horne Double/Bondi Beach and Raine & Horne Commercial Bondi Junction.

“Singapore investors have an appetite for commercial office buildings and residential blocks in the Sydney CBD and the Eastern Suburbs,” said Mr Serrao.

“Singapore buyers are chasing the strong yields and capital growth available from owning commercial and residential buildings.

“Meanwhile, residents from Hong Kong want to move to a locale on the map such as Sydney as they believe it affords them sanctuary and stability.

“There are also cashed up expats looking to return, but none of these overseas buyers have indicated the latest COVID-19 lockdowns have hurt Sydney’s safe-haven status, and buyer enquiry is still robust.

“The prevailing view with overseas buyers is that once Australia gets its vaccination rates up, it will be all systems go again for Sydney and its real estate market moving into 2022.”

Talk of a correction is off the mark

Mr Serrao is also dismissive of calls by some pundits that the Sydney market is set for a correction in the short term.

“I do believe property prices will plateau a touch after we get out of lockdown as many people start to get back to normal and spend less time checking out real estate prices and start taking holidays again.

“However, I don’t expect prices to correct like we’ve seen following previous booms over the last 30 years because we haven’t yet seen the current cycle run its full stretch yet.”

Mr Serrao continued, “We are still landing many significant sales that demonstrate the strength of the market.”

Some of the significant sales that illustrate the strength of Sydney’s prestige market include 25 Lamrock Avenue, Bondi Beach that sold for $5.6 million in October 2020.

The exact property re-traded recently for just over $9 million. Likewise, a four-bedroom terrace at 9 Midelton Avenue, North Bondi, sold for $3,980,000 in October last year.

“Everyone said that was a crazy price last year, and it just re-traded for $5.3 million,” Mr Serrao confirmed. “The market just seems to be going up every week.”

According to Mr Serrao, off-market sales are also healthy.

“We sold a property at 65a O’Brien Street, Bondi Beach sight unseen to a client for $5.6 million. This property traded hands 12 months ago for $3.8 million.

“I have never seen a market where people have made so much money and so quickly.”

The traditional selling market will start in the summer

Mr Serrao said the single most significant impact that the latest lockdowns will have on Sydney real estate is to push the traditional selling market from spring to summer.

“We will see a spike in listings as the market and the weather heat up, but as there is so much buyer demand locally and from overseas, again, I only see values rising,” he said.

“Moreover, even the most unprecedented event in over 70 years couldn’t stop the market. The lowest interest rates in history will also help keep the market ticking over in 2022.

“The only possible market handbrake would be if the banking regulator jumped in as it did a few years back and tightened lending. But it would be a courageous government that allowed that situation to happen again.”

Source: Raine & Horne Group

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