HOUSE PRICES IN SYDNEY - THE RISE AND FALL.
Last year property investors were rubbing their hands together waiting for the imminent crash in Sydney’s property market…But then it didn’t really happen. Against all odds, almost every suburb in Sydney saw house prices rise over the last 12 months. Even more surprisingly, 115 suburbs clocking double-digit price growth.
Now, Sydney’s median house price is a whopping $1,211,488, surging 4.8 per cent during the December quarter, reaching a record high and outstripping pre-COVID-19 prices by nearly $50,000.
The inner-west suburb of Alexandria recorded the largest median house price increase, jumping 30.6 per cent to $1.9 million over the 12 months. Alexandria was followed closely by Clovelly, with the median house price jumping 29.9 per cent to $3.45 million, and Cronulla, which grew 27.5 per cent to $2.2 million.
The northern beaches recorded the strongest price growth as a region, jumping 10.1 per cent to $1.73 million over 2020.
It’s important to note though, these expensive postcodes that experienced price rises were clawing back losses made during the downturn. In the space of just one year, these suburbs recovered not only the losses sustained during the downturn but any incurred during the short-lived dip during the pandemic.
Much of this recovery was being driven by wealthy upsizers with the higher income households less impacted by Covid. These households are seizing the opportunities while lower income households struggle.
Top 10 house growth by suburbs
Top 10 apartment growth by suburbs
So why is this happening when the world is in a tizz?
It’s a combination of improving consumer sentiment, low interest rates and pent up demand from buyers during the lockdown with limited homes available due to reluctant sellers.
But of course, when there are winners there are losers too. For the housing market, there were losses, but not drastic at least with the highest loss in home price experienced in Marsfield, decreasing by 10.1%.
Things were a little scarier for the apartment market, with the suburb of Rozelle experiencing a 18.2% loss.
Top 10 house declines by suburbs
Lane Cove North
Top 10 unit declines by suburbs
This year we expect to see more listings come to market than last year, however we’re going to see an increase in buyers – so it’s almost going to even out. What else will happen in the Sydney market this year? Watch this space.