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While strong market activity is expected across NSW well past Easter, new housing will be required for the trend to stand the test of time.
The Real Estate Institute of New South Wales (REINSW) said buyer demand has successfully sustained the market to date as supply struggles to keep up with demand, with the recent effect of intensifying competition and driving prices upward.
Moving forward, listings are expected to increase as more vendors seek to take advantage of the hot market, according to REINSW CEO Tim McKibbin.
“Buyers will absorb the increase in stock and more listings might also turn down some of the heat on recent price growth, though the upward trajectory of prices appears here to stay in the short term,” Mr McKibbin said.
With buyer demand sustained, along with interest rates, “strong activity [should] continue into the colder months”, the CEO forecast
However, while vendor listings unlock existing stock, new housing will also be an important key to maintain the momentum across the NSW property market, he noted.
According to Mr McKibbin: “The need to create new housing is an important part of the equation when demand is so strong.
He argues that “there’s still work to be done across the state in terms of making land more readily available for new housing options”.
Pushing for reform
As the NSW property market continues to defy expectations with its strong performance post-COVID, the CEO reinforces the importance of reform across the state.
In particular, Mr McKibbin has bolstered the push for a “a dedicated, exclusively focused and industry experienced independent commission as the key regulatory authority for the industry”. This was proposed as part of the Property Services Council Bill, which has recently been passed by the upper house.
“A real estate services commissioner will improve standards of quality and trust both in the regulation and operation of the industry, for the benefit of consumers,” he added.
Among the benefits of this reform is the alignment between the property industry and the legal and building services industries, which could address building quality standards, especially in the wake of some high-profile residential tower failures.
“When better outcomes for consumers, the industry and government are within reach, it’s our responsibility to pursue the type of reform which will deliver these outcomes,” Mr McKibbin concluded.
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