House prices leapt by nearly 30 per cent in one Sydney suburb over the past 12 months, and by double digits in a string of others.
House prices leapt by nearly 30 per cent in one Sydney suburb over the past 12 months, and by double digits in a string of others, as the fastest quarterly price growth in two years set new records. Sydney house prices jumped 3.
4 per cent in the last three months alone, to a record median of $1.75 million, thefor the September quarter found. Unit prices rose 1.9 per cent on the quarter to $840,422. "Price momentum has been really building, but at different rates in different suburbs," said Domain chief of research and economics Dr Nicola Powell. "The strength of the market has really kicked up a gear, helped by three cash rate cuts this year, rising consumer confidence, low supply and the 5 per cent"Those suburbs that had been underperforming are seeing a big gear shift, as pockets of affordability dwindle, and price growth is rippling out to other sections of the market. It's a very mixed story." Yet that price strength tale is very much an upstairs-downstairs drama, she believes. Ritzy areas saw pressure from cashed-up buyers determined to snare houses among all the units on offer, like in Cammeray where house prices soared by 29 per cent, or to buy luxury downsizer apartments, such as in Darling Point, where unit prices rose by 25.5 per cent. At the same time, first home buyers and investors have been flocking to more affordable centres, pushing up house prices 20 per cent in Western Sydney's Kingswood and 19 per cent in Wyong on the Central Coast. Software company worker and first home buyer hopeful Christine Maedche saw the spectacle unfold before her eyes. Trying to buy an apartment on the eastern beaches, she went out every Saturday and Wednesday to inspections."But prices were going up so fast, week by week, it gave me a huge sense of urgency," Maedche, 31, said. "I thought if I don't buy now, these properties will be $50,000 or $100,000 more next month and I won't be able to afford them."This market is so volatile, everything costs so much more than this time last year. I ended up settling in July on a two-bedroom apartment in Bondi, but the week before, equivalents were $50,000 less."After Cammeray, with its new house median of $3.38 million, Lidcombe had the biggest jump in house prices of 24.5 per cent to $1.79 million, Mount Pritchard rose 24.2 per cent to $1.18 million, Bankstown rose 21.2 per cent to $1,485,000 and Kingswood gained 20 per cent to $900,000. "In Cammeray, we've also seen a lot of extensively renovated houses come onto the market and people realise, since COVID, that it's much better to buy something already renovated and to save the money and the stress of doing it themselves," said agent Helen Wilson of Belle Property Neutral Bay. "That's had a domino effect on thinking, and prices, and we're seeing great results from the competition for those." With units, Darling Point rose most by 25.5 per cent to $2,950,000, Balgowlah by 18.6 per cent to $1,327,500, Stanmore by 17.9 per cent to $955,000, Milsons Point by 17.4 per cent to $2,172,500 and Redfern by 15.9 per cent to $1.2 million. Besa Deda, former chief economist of the Westpac Business Bank, and now chief economist of accounting advisory firm William Buck Australia, said Sydney prices are booming largely as a result of the rate cuts, the expectation of two more next year, the healthy jobs market and the net increase in overseas migration. "Population growth is still underpinning demand and, while supply is improving, it's still slow which is continuing to put upward pressure on prices," she said. "We are predicting that prices will rise 6 per cent this year and 7-8 per cent the next. "Housing affordability is still challenging but we do have the First Home Guarantee and no longer any cap." Kate Browne, head of research at financial comparison site, Compare Club said the Australian government 5 per cent deposit scheme has convinced a lot of first home buyers that they're now in a position to buy - even though many are not. But they've added to the swelling demand for property. "But for a number, the rapid increase in prices is still a major hurdle, along with the income they need to service the mortgage," Browne said. "For a $1.5 million property on a $1.4 million loan, a single person now needs to earn $285,000 and a couple, $290,000. "It can be hard too to save a deposit when you're paying the highest rents in the country. The astonishing thing is that the Sydney market remains so resilient despite everything, like COVID and stagnant wages, thrown at it."
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