Property valuations NSW now cover the suburbs of Sydney’s upper and lower North Shore and North-West including the Hills District and Norwest for both Residential Valuations and Commercial Valuations. Our Sydney valuers have lived in Sydney for most of their lives and possess an intimate knowledge and expertise of the Sydney property market. Our valuation reports are used for Family Law/Property Settlement matters, Stamp Duty assessment, Capital Gains Tax Purposes and general advice for pre-purchase and pre sale.
Market Research – Sydney Property as at May 2024
Our ongoing research indicates Sydney home prices lifted 0.3% in March and are now only -1.4% below their previous peak in January 2022 which followed the post pandemic boom.
According to CoreLogic, Sydney dwelling prices rose 25.4% from the onset of COVID-19 to their cyclical peak in January 2022 before seeing a market correction by way of a 13.8% fall through to the January 2023 trough. Demand indicators show that both buyer and seller confidence throughout the Sydney market has increased more recently with potential rate cuts boosting borrowing capacity and giving buyers more money to spend.
The level of value gains across Sydney’s housing markets was leading the nation in early 2023, but conditions began easing after a cyclical peak rate of growth in May when home values were rising at a monthly pace of 2%. A sharp slowdown came amid rising interest rates, tightened lending, and worsening affordability at a time when advertised stock was above average. Rising interest rates were the leading driver of the correction phase in a city where affordability has been stretched to the limit, and both sellers and buyers have been acting with caution until there is more clarity around when rates will settle. Fears around further interest rate hikes have now subsided, but the high-rate environment seems to have taken some heat out of the market in 2024. One of the aspects of the housing market boom during the pandemic was that it was driven by owner-occupier buyers.
Overall, the Sydney property market saw home values defy predictions in 2023 – prices are now up 11.6% since the January 2023 trough. 2023 saw a sudden and unexpected turnaround as home values returned to near-peak levels. Now, in 2024, things are moving at a more gradual pace
Greater Sydney’s median dwelling price increased to $1.12 million over the year with more than 90% of suburbs increasing in value according to Corelogic.
Data from Domain reveals the Sydney suburbs of Bungarribee, Quakers Hill, and Kings Park were among 36 Sydney suburbs where median house prices rose above the $1 million level over the 12 months to October 2023, with each of their median house prices increasing in value by more than 15% year-on-year.
Now over 70% of Sydney suburbs now have a median house price that is higher than $1 million, up from about 65% the year before.
Meanwhile, a number of inner and middle ring areas joined the the “$2 million plus” club, which now reaches almost 170 suburbs, up from 140 in 2022.
Sydney’s property market ended 2023 strongly, but signs of softer market conditions as the pace of price growth and clearance rates eased through the end of 2023 divides the experts on their 2024 forecasts.
Here are some of the most recent forecasts:
- CBA forecast Sydney property values could rise 4% in 2024.
- ANZ Bank forecasts Sydney property values could rise 6-7% in 2024.
- NAB forecast Sydney property values could rise 5% in 2024.
- Westpac forecast Sydney property values could rise 6% in 2024.
- SQM forecasts Sydney property values could fall up to 4% in 2024.
- PropTrack forecast Sydney property values could rise 5% in 2024.
In conclusion, Sydney’s median house price is still very high, so first home buyers are finding it extremely difficult to enter the market.
Some hope remains as we have discovered the Sydney suburbs where you can buy well below the median house price include St Helens Park, 2560, North St Marys, 2760, Hebersham, 2770, Fairfield, 2165 and Jamisontown, 2566, Eastlakes, 2018, Hillsdale, 2036, Greenwich, 2065, Ashfield, 2131, and Canterbury, 2193 with median unit prices ranging between $640,000 and $735,000 and median house prices ranging between $725,000 and $975,000 in some of these suburbs in 2024.
Sydney’s rental market remains very tight
Vacancy rates in Sydney’s rental market are traditionally very tight, usually hovering well below the national equivalent. Sydney has been facing a rental housing shortage for several years now thanks to continuing strong demand and an acute undersupply in the rental market, the national vacancy rate is exceptionally low today by historical standards. SQM Research indicates Sydney’s vacancy rate now stands at around 1.7%. This has led to increased competition for available homes, driving up rentals and making it increasingly difficult for many Australians to afford a place to live.
