Sydney housing market: Suburbs with the biggest COVID-19 price falls, hikes
New data shows the Sydney suburbs where housing prices have seen the biggest gains and losses since the COVID-19 pandemic. We reveal the first homebuyer hot spots and investment hubs. SEE THE LISTS
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EXCLUSIVE
New data has revealed the Sydney and regional NSW suburbs that have suffered the biggest drop in housing prices - and those with the biggest gains - since the pandemic.
While property prices across Australia have remained relatively stable throughout COVID-19, new data shows that some suburbs have weathered the storm better than others.
The CoreLogic data obtained by The Daily Telegraph shows housing values in suburbs like Sydney’s Sutherland Shire have plummeted while those in northwest suburbs like East Ryde and Denistone have seen the biggest spike in value.
In regional NSW, prices in suburbs across the Illawarra like Berkeley, Windang and Coledale have seen big gains while Cobar, Hillston and Jindera have suffered huge blows with drops as big as 15 per cent.
The CoreLogic Home Value Index measures the percentage change in average house and apartment values across suburbs in the six months to June 2020 by analysing sale prices in the area and valuing other properties based on this measurement.
It shows that some of Sydney’s wealthiest suburbs have been the least affected by the economic fallout from the pandemic, with those in Sydney’s south and southwest have been the hardest hit.
The data comes amid speculation that property prices could slide once JobKeeper support ends in September, leaving an “economic cliff” as the recession deepens.
Sydney suburbs with the biggest price changes
A favourite for professionals and families, the hilly northwest suburb of East Ryde had the biggest price jump in Sydney, with dwelling values soaring by 11.5 per cent with a median value of $1.65 million in June compared to January.
A cluster of suburbs in the surrounding region including Denistone, Denistone East, North Ryde, Epping, Eastwood, Marsfield, West Ryde, Pennant Hills, Tennyson Point and Ryde also recorded some of the biggest price increases in Sydney.
The south western Sydney suburbs of Austral, Ashcroft, Sadleir and West Hoxton emerged from the pandemic better off, joining the list of suburbs with the biggest increases in value.
Sydney’s famed Bondi Beach continues to be a fan favourite, with property values increasing 7.1 per cent, alongside the beachside suburb of Warriewood which saw a 7.4 per cent increase with a median value of $1.45 million.
Suburbs outside of Sydney’s inner city ring had the biggest dive in housing values, with Grays Point in Sutherland suffering a 5.6 per cent fall, followed closely by Kurnell.
The economic uncertainty hit the south west suburbs of Cabramatta, St Johns Park, Bossley Park, Lansvale and Canley Vale hardest, with price drops of between 3 and 4.5 per cent.
CoreLogic head of research Tim Lawless said the strong performance in the Ryde area reflected its sought-after location and the number of value offerings on the market.
“The larger than average falls across the more expensive areas of Sydney through the previous down phase is potentially another factor adding to their recent popularity,” he said.
Despite the strong growth over the past six months, many of these areas are still recording housing values that are lower than they were at the previous market peak in mid-2017.”
On the other hand, suburbs that were located further away from the city or key transport infrastructure were the most exposed to the bleak economic conditions, he said.
“The weakest performers show more diversity than the top performers across Sydney over the past six months, however more areas in the worst performing list are located further from the city centre and in many cases offer up less efficient transport opportunities to the CBD. ”
This could, however, change, he said, with some of the most expensive suburbs in Sydney potentially exposed to big price drops once the current stimulus measures lapse and if foreign investors can’t travel to Australia.
“More broadly we are seeing the top quartile of Sydney’s housing market leading the downturn, after previously leading the upswing, so there is a chance that the more expensive areas of the city could underperform relative to other sectors of the market.”
Units in inner city suburbs exposed to weak rental demand could see declines in value if investors concerned about cash flow rush to offload their properties, he said.
“Longer term, the real test for the market will be when stimulus measures such as JobKeeper are wound back and mortgage repayment holidays are over. At this stage we could see more urgent sales coming on the market which could be a source of renewed downwards pressure.”
Regional NSW suburbs with the biggest price changes
Across regional NSW, Narromine in the Far West had a whopping 13.4 per cent increase in average value with a median price of $205,930.
The suburbs of the Illawarra including Berkeley, Windang, Coledale, Koonawarra, Farmborough Heights, Austinmer, Cordeaux Heights, Horsley, Unanderra, Cringila, Dapto and Lake Heights all saw big gains in value of between 7.7 and 11.7 per cent.
Meanwhile, housing struggled across the Murray, with Jindera, Thurgoona, Mulwala, North Albury, East Albury, Glenroy and Holbrook all recording price drops of between 4.1 and 9.2 per cent.
It was the Far West suburb of Cobar that saw the biggest loss, with a 15.7 per cent slide in housing prices and a median of $129,397.
Mr Lawless said property prices in the regions reflected the deep divide between coastal suburbs and drought-hit areas.
“Across the regional areas, the weaker performing markets tend to be non-coastal and often based in agricultural regions where economic conditions have often been tougher due to the longevity of the drought or other factors.”