Sydney property prices led the latest national value rises, with premium locations doing the heavy lifting. According to PropTrack data, the nation’s top 10 suburbs for median price growth across the past six months included four suburbs in the million-dollar club, all of which were in Sydney.
The Sydney price growth was mainly attributed to changing consumer confidence and reduced recessionary worries.
“I think Sydney has benefited, in particular, from a real change in sentiment in the market this year, compared with last year,” REA Group senior economist, Paul Ryan, previously told The Property Tribune.
“This time last year, I think people were worried about recessions, they were worried about the risks to the global economy, and now we are in a position where we are either at the peak of rates or very close to the peak of rates.”
Recently, PropTrack forecast 3% to 6% price growth for Sydney dwelling prices towards the end of this year. While less confident due to the multiple factors impacting the market, next year’s forecast was between a -1% to 2% price change.
Westpac also recently released a forecast for dwelling values, with Sydney real estate prices expected to grow by 10% in 2023, 6% in 2024, and 4% in 2025.
PropTrack director of economic research, Cameron Kusher, previously noted key drivers of property price growth were limited supply and strong demand.
There may be light at the end of the tunnel though, with the typically busier spring season approaching, and an unseasonable uplift in Sydney property listings recently reported.
Shore Financial has revealed its latest property price predictions for Sydney, unveiling the top five suburbs for price growth across five different quintiles of the Sydney housing market.
These quintiles divided Sydney’s circa 600 suburbs into five categories, based on their current median asking prices for houses. The quintiles are referred to as Heartland Sydney, Suburban Sydney, Rising Sydney, Professional Sydney, and Affluent Sydney.
The rankings are done by first excluding suburbs that do not meet certain benchmarks and trends related to asking prices, days on market, inventory levels, and sales volumes over the past three months. The remaining suburbs are then ranked on expected growth in asking prices over the next six months.
Source: Shore Financial.
Source: Shore Financial.
Source: Shore Financial.
Source: Shore Financial.
Source: Shore Financial.
Based on the research, Sydney’s housing market has turned the corner, according to Shore Financial CEO, Theo Chambers. ‘
“Twelve months ago, prices were falling in most suburbs across Sydney. Six months ago, the turnaround had just begun, but it was too early to know for sure. Now, though, we can say with certainty that Sydney is in growth mode,” he said.
“During the past six months, we’ve seen days on market and inventory levels fall in many parts of Sydney. In other words, market conditions have swung from buyers to sellers, which has been reflected in rising asking prices.
Chambers stressed that there is a distinction between a rising market, which he noted Sydney is experiencing, and a booming market, which Sydney is definitely not seeing.
“It’s also important to realise that while prices are rising across Sydney as a whole, they’re not rising in every single suburb. Also, the outlook differs from suburb to suburb. Our research shows that wealthier suburbs, like Naremburn on the North Shore and Fairlight on the Northern Beaches, are likely to record stronger growth over the next half-year than less affluent suburbs like Busby and Green Valley in the city’s west.
“Focusing just on the 25 suburbs in the Shore Financial State of Sydney Report, they’re all showing strong signs they’ll outperform suburbs in a similar price bracket over the next half-year. One of the key leading indicators is the low levels of inventory in these suburbs. Demand pressures are building, which is likely to lead to above-average price growth.”
Located on Sydney’s lower North Shore, the suburb is well connected, well located, and benefits from an abundance of amenities. Naremburn borders St Leonards, is close to the St Leonards station, and is serviced by the M1 motorway. It also enjoys close proximity to the Royal North Shore Hospital and the Crows Nest retail precinct.
Naremburn suburb profile
Average household weekly income
$2,950,000
Median house price – growth over past 12 months
9%
Inventory levels
8 days
Share of homes occupied by owner-occupiers
37.8%
Source: Shore Financial.
Asking property prices for 2065, including Naremburn
Bordering Manly, the suburb of Fairlight enjoys all the benefits of Manly and nearby Balgowlah. It comes as little surprise the suburb is doing well. Real estate expert and contributor, Lloyd Edge, previously wrote in The Property Tribune that ‘bridesmaid suburbs‘ or ‘sister suburbs‘ tended to have better capital growth potential as they grow in popularity when buyers are priced out of the premium suburb and start buying next door.
The total property listings for the postcode of 2094, including Fairlight is incredibly tight, with SQM Research data showing only 14 properties listed for sale.
Stock on market for sale in 2094, including Fairlight
Fairlight suburb profile
Average household weekly income
$3,780,000
Median house price – growth over past 12 months
6%
Inventory levels
22 days
Share of homes occupied by owner-occupiers
26.5%
Source: Shore Financial.
The bustling hub of Chatswood has seen its landscape change considerably over the past few years and continues to change.
Developments in the suburb include Central Element‘s and MaxCap Group’s Ethos. Recent changes in stamp duty legislation are also believed to be behind a flurry of sales in Sydney’s North Shore, Plus Agency‘s Peter Li recently told The Property Tribune.
Chatswood suburb profile
Average household weekly income
$2,915,000
Median house price – growth over past 12 months
5%
Inventory levels
17 days
Share of homes occupied by owner-occupiers
28.0%
Source: Shore Financial.
Asking property prices for 2067, including Chatswood
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