Sydney Property Market Overview
The Sydney property market has continued to show signs of recovery with low growth across the market despite three interest rate increases this year. Growth in median house prices was 1.28% for
the 12 months to 31 October 2006. Over the October Quarter
there was a 0.53% growth in median house prices taking
the median house price to $543,000. The unit market is showing very low levels of growth over the last 12 months with a 0.30% increase
in median unit prices a median price of $371,500.
Source: Residex.
Sydney
Median Prices
12 months to 31 Oct 2006 and Oct
2006 Quarter
|
|
|
Houses |
Units |
| Oct 2006 Median
Price |
$543,000 |
$371,500 |
| % Change over 12
months to 30 Oct 2006 |
1.28% |
0.30% |
| % Change over Oct
2006 Quarter |
0.53% |
0.30% |
| Average % Change per
annum over last 10 years |
9.2% |
7.40% |
These figures are consistent with figures released by the Australian Bureau of Statistics which show an increase in Sydney housing of 1.4% over the 12 months to 30 September 2006 and 0.2% over the September Quarter.
These figures suggest that the adjustment phase over the last 2 years is drawing close with the market starting to show the very early stages of a new growth cycle.
The Inner City, East and Lower Northshore continue to perform well with a lack of good quality stock and a large number of cashed up buyers holding these markets up. However not all areas of the Sydney market have been unaffected by the rate increases, the outer suburbs in the West and South are not faring as well. These markets are experiencing a number of mortgagee sales. For
example, a three bedroom brick-veneer house in St Clair sold in a mortgagee sale for just $260,000 in August 2006 - down about 42 per cent from its last sale at $450,000 in 2003.
In Parramatta, a mortgagee accepted $541,500 for an unrenovated house that fetched $736,000 in 2003.
The lower end of the market which is predominantly made up of first home buyers and investors is also feeling the effect of the interest rate increases. In contrast the prestige properties continue to perform
strongly with a shortage of $3 million plus properties
on the market. Due to the low stock a large number of
properties are selling off-market or pre-market. According to valuer Dyson Austen, the 10
most expensive properties in Sydney in the September Quarter sold for approx. $113 million, $20.9 million higher than the same period in 2005.
Four of the top sales in the September Quarter were apartments.
The most expensive property was John Symond's 517sqm apartment at Walsh Bay setting a new record for the highest apartment sale. Prior to this sale, John Laws and Russell Crowe were the owners of Australia’s most expensive apartments when they bought at Woolloomooloo Wharf. Laws paid $15 million for his unit in 2005 and Crowe paid $14.3 million in 2003.
In the Quarter three apartments were bought off the plan at The Bondi in Cambell Parade, Bondi Beach for $10 million, $8 million and $8.5 million within the first week of marketing. The most expensive house was a waterfront property at 12 Drumaresq Road, Rose Bay selling for $14.2 million. The share market continues to boost demand for prestige property as high-net-worth
investors cashed in their shares.
The Sydney market has entered a phase of
stabilisation and consolidation with a small amount of
growth creeping back into the market. A lack of supply of good quality properties, declining new housing and a large number of buyers in the market is keeping a floor under the Sydney market in many areas.
| 
12 Dumaresq Road, Rose Bay: waterfront reserve on 790sqm with stunning city and harbour views. Sold in Sept 2006 for $14.2 million. 
