NSW MARKET OVERVIEW
NEW SOUTH WALES
NSW Market Overview with Selin Ince
How does the property market in (NSW) compare to other states at the moment and what are some key trends that are occurring? Whilst Sydney’s property market is experiencing a ‘decline’ at the moment, long term fundamentals are strong. The property market in NSW has been one of the strongest and most consistent performers over the last decade. However, the market has seen a shift, predominantly being a sellers’ market in the back end of 2021 to a buyers’ market in 2022. Whilst there are still transactions occurring, with interest rate rises – the sentiment has shifted and deals are more at mercy to buyers wants rather than sellers. Buyers are now taking their time, and contemplating decisions as opposed to the franticness of last year. What sectors are most in demand? It is safe to say the Industrial market for 2020 and 2021 was the most in demand sector. Whilst the sector still trades at record levels, we are seeing the Hotel and prime CBD office market make a comeback, in particular Pubs with gaming machine entitlements being the most highly regarded asset class of this year.
What do you see as the biggest challenges that face buyers and sellers in todays market? The biggest challenge we see thus far is the gap between buyers and sellers widening. Sellers pricing expectations are still remaining at the levels of 2021, however the gap between what buyers are willing to offer for assets are widening. In what we’re seeing today – despite having quality stock, bridging this gap is proving to be the biggest challenge. Who have been key investors over the last 18 months and have you seen a shift from previous years? I n the Hotels and Pubs space (the sector in which we focus on intimately), we have seen the normal larger players take up a majority of the market in terms of trading Hotels and Pubs. This being said, high net worth privates following on from Covid have now seen the appeal of the asset class and are making waves with regard to entering the space. Funds and syndicates have also been key investors (mainly with Hotels), setting up new funds with three-four year lifespans in order to maximise returns than move on to different acquisitions.
SELIN INCE Senior Executive Hotels Savills Australia
32 –September / October 2022
Powered by FlippingBook