A Comprehensive Analysis of Waterloo, NSW Real Estate Market: Supply and Demand Trends

As a leading real estate agency in Waterloo, NSW, Beere Property prides itself on providing up-to-date information and insights to help clients navigate the ever-changing property market. In this article, we present an analysis of the supply and demand trends in the local real estate market for the suburb of Waterloo, focusing on the rental and sales sectors between 2017 to 2023. By examining Figure 1 and Figure 2, which illustrate the number of 1, 2, and 3-bedroom units available for rent and sale, respectively, we can gain valuable insights into the market dynamics.

Rental Market Trends: Figure 1 demonstrates a significant increase in the number of units in Waterloo available for rent from March to July 2020. This significant surge in supply can be largely attributed to the impact of the COVID-19 pandemic and subsequent lockdown measures. At this time foreign workers and international students were returning home, local workers were  leaving the city, and Waterloo apartments saw a significant drop in rental demand. However, following this peak, the rental stock gradually decreased until early 2022. During this period, demand remained relatively stable, leading to a gradual reduction in available properties.

From early 2022, the rental stock levels experienced a decline, reaching its lowest level in March 2023. The primary drivers behind this phenomenon locally was the substantial increase in demand from overseas students as the borders reopened, putting immense pressure on the available apartment housing stock, especially at the start of 2023. These students sought accommodation near educational institutions, along with returning local and foreign workers to the city, leading to a surge in demand for rental units.

However, since April 2023, the market has experienced an increase in stock levels for apartments to rent. This can be attributed to a recent decrease in student demand, as well as the historical trend of quieter winter periods with lower demand for inner-city apartments. These factors have contributed to a temporary surplus of rental properties, creating a favourable environment for potential tenants to find properties more easily and declining rents. We expect to see this trend stabilise in the next couple of months.

Figure 1 Data Source from Domain

Sales Market Trends: In contrast to the rental market, the sales market has witnessed a different trajectory. Figure 2 depicts a consistent decline in the number of units available for sale since July 2022, with a notable sharp drop in the past two months. This decline in stock has led to reduced days on the market and a stabilisation of prices.

The decreased inventory of properties for sale are the result of sellers are holding back, while buyers have been more active in the market, resulting in quicker sales and a more competitive landscape. As supply decreases, the scarcity of available units is having the effect of firming up prices, creating a more favourable environment for sellers.

Figure 2 Data Source from Domain

Conclusion: The data analysis reveals intriguing trends in the Waterloo, NSW real estate market. In the rental sector, there has been a recent increase in supply due to decreased demand from overseas students and workers, and the seasonal effect of reduced inner-city apartment demand during the winter months. On the other hand, the sales market has witnessed a continuous decline in inventory, leading to increased competition, reduced days on market, and we are seeing some recent firming in prices.

At Beere Property, we recognise the importance of staying informed about these trends and adjusting strategies accordingly to help our client get the best results. Whether you are a prospective landlord, seller or buyer, our experienced team is dedicated to providing personalised solutions to meet your real estate needs in this dynamic market. Contact us today to discuss your requirements and benefit from our expertise in the Waterloo area.

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