The Sydney property market is seeing its biggest quarterly growth in almost three decades, with the median home value in Sydney now reaching a staggering $1.31 million. Property prices in Sydney rose by 6.3% in the last quarter and the Sydney auction market remains strong, surpassing 90% of auctions in many parts of the city. As you can see in the chart below, Sydney’s housing market failed to grow by 6.7% in the last quarter and is heading towards strong double-digit capital growth this year. It has been a strong year for Sydney’s real estate sector with double-digit growth.
As home prices have risen, so has consumer demand: CoreLogic estimates that around 24,000 homes have been sold in the Sydney metropolitan area in the last three months, up about 34% year-over-year.
House prices fell in Sydney, Melbourne and Perth, but rose in other cities. Darwin (2.7%) and Sydney (2.4%) recorded the strongest monthly house price growth. Melbourne house prices fell 0.2 per cent month-on-month at the end of the year, while Sydney’s rose just 0.4 per cent, well behind Brisbane and Adelaide’s 3.1 per cent monthly gain +2.7%. The weakness will spread across Sydney in the coming months, with house prices also rising, with open or well-connected areas such as Baulkham Hills and Hawkesbury, Sutherland, the Central Coast, the outer west and the Blue Mountains seeing the biggest gains over the quarter.
Ironically, city center flats controlled Australia’s highest property prices in a year with house prices rising twice as fast as flats as more people moved to regional areas to avoid the lockdown. In Australia’s wealthier suburbs, typical house prices, which are at least four times the Sydney median house price of $1.361 million, after rising 30.4 percent during the year to November, doubling the pace of apartment prices in Sydney. The median home price in Sydney increased by about $1,100 a day last year to over $1.6 million, according to a new report. Sydney house prices topped A$1 million last March, while Melbourne’s median house prices topped A$1 million in April this year for the first time in the city’s history.
Three of the eight capitals now boast average home prices in excess of seven figures as Bondi, Melbourne and Canberra surpassed median values of $1 million. Growth was not limited to metropolitan cities, with Bulli in Wollongong south of Sydney recording a massive 34.1% year-over-year gain, bringing the median home price to $1.2 million. New property data from the Domain Property website shows home prices have risen 10% in capital cities over the past year, led by a staggering 19.5% rise in the nation’s capital, Canberra, and double-digit jumps in Hobart, Adelaide and Sydney. Sydney’s 8.5% quarterly growth is the biggest since website Domain Property began keeping records in 1993 and raised the median home price in Sydney from $1.21 million in December to a new high of $1.31 million dollars in March.
From January to April 2021, home values in Sydney rose by 9.3%, with the average home price in Sydney still the highest among capital cities, 49.8% higher than the national average. Corelogic reports that home values in Sydney have risen by 5.7% since hitting a low in October last year, hitting a new high in early March 2021. between units, and housing affordability is at an all-time high. While the most recent data points to a near-scandalous increase in Bondi prices, nationwide statistics show that during the COVID-19 pandemic, demand for stand-alone homes (mostly wherever they are) far exceeded demand for housing.
The limitations of urban marginal housing construction are explained by rapidly growing price problems in these cities. A rise in Sydney’s housing stock is likely to dampen demand, and a potential increase in interest rates could slow growth. The concern means that even in Sydney’s overheated real estate market, there could now be a time of opportunity for buyers of luxury apartments in urban areas before international travel resumes. Sydney Apartment Market Sydney has more residential life than any other Australian capital and family-friendly apartments are seen as an affordable alternative to homes and apartments in popular areas such as Sydney’s eastern suburbs and northern beaches where they are likely to enjoy sustainable demand. leading to a sharp rise in prices.
A recent report from ANZ Bank predicts that Sydney home prices will rise by 19% through 2021 before declining to 6% in 2022, with most segments seeing strong price increases outside of the home market, the city and skyscrapers. Sydney saw the strongest growth, with the Assigned House Price Index up 12% (9.6% inflation-adjusted) in the year to Q1 2020, followed by Melbourne (10.8%) and Hobart (7% ). In Kurnell in Sydney South, home values rose by 54.5%, while South Turramurra on Sydney’s upper north bank came in third with a 52.5% increase in home values. The Corelogics report also showed that many CBD workers also swapped high-rise apartments with the suburbs, placing Kurnell in Sydney’s south as the second-highest rise in housing values.
Luxury real estate markets on Melbourne’s Mornington Peninsula, Sydney’s Northern Beaches, and South East Queensland’s Gold Coast and Sunshine Coast, Melbourne’s Mornington Peninsula, Melbourne, Sydney, have performed best in years. New South Wales, especially Sydney, has the most expensive housing in Australia, with an average home price of A$890,400 ($620,747) in the first quarter of 2020, more than 25% above the national median home price. Real estate agent James Folino added that properties that could previously be on the market for 30 to 45 days are now selling within five to seven days, and house prices, especially those with adjacent land, have risen by about 30%.