Open for inspections and auctions have been getting busier. Picture Thomas Lisson
Sydney’s property market is back in overdrive – and it’s the city’s wealthiest enclaves and its most budget-friendly heartlands that are fuelling the rebound.
PropTrack figures revealed home values across the Harbour City jumped by nearly 1.5 per cent over the most recent quarter, adding more than $10,000 to the average home cost.
This included a 0.7 per cent surge in prices over August alone.
This level of growth means a typical Harbour City house is now about $66,000 pricier than it was at this time last year, while the average unit is about $24,000 more expensive than a year ago.
But the headline figures only tell part of the story – the real fireworks have been happening at the extreme ends of the market.
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Sydney’s more affordable southwest – home to Liverpool and Fairfield – was the top growth region across the city, notching up a 3.25 per cent quarterly rise.
Properties in the region are among the cheapest in Sydney, with units in Liverpool offering prices around the $450,000-$550,000 mark – well below the Greater Sydney average of $821,000.
Another significant growth area over the past three months, a period that encompasses the last interest rate cut, was the blue chip eastern suburbs, where dwelling values climbed an average of 2.84 per cent.
Cheaper and premium markets alike are running hard. The inner southwest, which includes the Canterbury-Bankstown and St George regions, one of Sydney’s more affordable middle-ring areas, recorded a 2.3 per cent jump.
Pricier coastal regions like the Sutherland Shire (2.14 per cent) and the Northern Beaches (2.08 per cent) also had strong gains.
Source: PropTrack.
Real estate agents told The Daily Telegraph growth was the result of interest rate cuts this year, which have improved buyer confidence.
Upgraders are pouring into luxury enclaves like the eastern suburbs, northern beaches and Sutherland Shire, seeing them as relative bargains after two years of underperformance.
This has come as budget-conscious buyers and investors have snapped up stock in the southwest and Canterbury-Bankstown. These two regions have been popular because the properties offer more bang for buyers’ buck and rental yields outshine much of the city.
REA Group economist Eleanor Creagh said national housing values have been growing for eight successive months.
Property was gaining “momentum following the series of interest rate cuts this year, which have boosted borrowing capacities, improved sentiment and drawn buyers back into the market,” Ms Creagh said.
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She added that activity should continue to pick up over the spring.
“Lower interest rates, increased borrowing capacities and improved sentiment is expected to continue to drive demand,” she said.
“Constrained new housing supply, strong population growth and the expansion of the Home Guarantee Scheme from October will also maintain upward pressure on prices.”
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