Data from research company CoreLogic shows that the value of Sydney’s property has increased by 75% over the last five years. The month of June has seen an average number of 683 auctions per week with a clearance rate of about 70%. This is an actually a decrease from the previous months, but is on par with the same time in 2016. Experts believe that the Queen’s Birthday long weekend traditionally has an effect on the volume of properties auctioned throughout the month of June. Further to this, the impending changes to stamp duty could potentially have buyers postponing a purchase until 1st July when those changes come into effect.
Across greater Sydney property prices are on the rise. The fastest increases are occurring consistently in Sydney’s beachside suburbs with the biggest increase over the last twelve months occurring in Manly with a median price rise of 37.1%. This trend has primarily been driven by long-term residents of Sydney’s North Shore either looking to move to a smaller property or live closer to the beach. Looking at suburbs closer to the city, an increase in demand for apartments has seen values rise significantly in Woolloomooloo. With limited land available for new developments in the suburb, demand is likely to drive property value up further in the coming years.
At the opposite end of the spectrum, Gosford has been named as Sydney’s most affordable suburb even though it is located more than 70 kilometres from the city centre. A recent report published by Domain Group has found that Sydney is becoming increasingly out of reach for first home buyers with only eleven suburbs being rated as affordable. These ‘affordable’ suburbs are located in Sydney’s West and along the Central Coast.
Looking forward, the value of Sydney’s property market is expected to slow somewhat, but not become stagnant or decline. Proximity to the city or beach, access to public transport, access to educational facilities and of course affordability will continue to have an impact.