Sydney has seen the rate of capital gains drop from an average of 1.7% over the six months to March down to 0.4% in April, continuing a weakening trend that became apparent around mid-March.
CoreLogic has released their newest housing market update for May 2020.
Policies restricting open homes and on-site auctions have recently been lifted, which could see activity across the local market pick up, however, some downside risk remains due to Sydney`s exposure to overseas migration as a source of housing demand as well as the likelihood that consumer confidence will remain at low levels.
Rental markets are likely to see weaker conditions due to the reduction in migration rates and less student demand, as well as a short term rental stock transitioning into the permanent rental pool.
Sydney rents were down 0.7% over the month, dragging the gross rental yield to a new record low of 2.9%.