Sydney home prices close in on surprising new peak
Spring has provided Sydney home values with a promising spike as prices move swiftly in on a new high.
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Sydney home values are close to a full recovery from the 2022 downturn as the city records 10 successive months of price growth.
The latest rise has come despite more properties coming to market in the first few weeks of Spring, with buyer demand at an all time high.
PropTrack’s Home Price Index for September has revealed that Sydney home prices climbed for the 10th straight month, rising 0.48 per cent, and are up more than 7 per cent from this time last year.
The recovery has come faster than many predicted.
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“Sydney prices have recovered most of 2022’s falls and are just 0.03 per cent below their peak recorded in February 2022,” PropTrack senior economist Eleanor Creagh said.
“Prices are now up 7.43 per cent from their low point recorded in November 2022.”
The Northern Beaches, North Shore, southwest Sydney, Parramatta, inner west and the Eastern Suburbs led the way over the third quarter, with price growth over 2 per cent.
Mr Creagh said both buyer and seller confidence was on the up with home choice also improving significantly.
“Home price growth has been driven by record levels of net overseas migration, tight rental markets and a housing shortage,” she said.
“Looking ahead, interest rates have likely peaked and population growth is rebounding strongly. Together with a shortage of new home builds, prices are expected to rise.
“As we head further into spring, more markets are likely to reclaim 2022’s fast falls to set new peaks.”
The news is welcomed by Umesh and Kiran Maheshwari who have listed their two bedroom apartment in Westmead after more than seven years.
It was the couple’s first home where they have been raising their six-year-old daughter Anaya.
While the couple have decided up upsize to a four bedroom home, they are planning to stay close to the Westmead area.
“We love this area, there are so many amenities such as upgraded hospitals, train station, shops, parks,” Mr Maheshwari said.
“We are definitely going to miss this place, this complex is beautiful and has a gym, pool, spa and tennis court.”
Mrs Maheshwari said they were upsizing to accommodate family migrating to Australia.
“We are looking for a bigger home to accommodate everyone,” she said.
“It’s a big move, it’s exciting and exhausting.”
Mr Maheshwari, who works as an engineer, said the market was strong at the moment in terms of rental return and unit prices.
“Prices are skyrocketing,” he said. “Ideally we would have loved to own two properties but mortgages are just too high.
“One good thing about Westmead is that first home buyers can still afford properties here,” Mrs Maheshwari added.
She said apartment living was also a great option with floorplans increasing and being able to save money on gym and pool memberships.
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McGrath – Parramatta agent Tariq Jameel said the Maheshwari’s apartment had received strong interest from young couples and downsizers due to its quality.
He said the apartment market had been a bit sluggish however picked up due to the increased migration driving up rental prices.
“Many people are looking to buy due to the higher rents,” he said.
“In the Westmead area, first home buyers can buy a two-bedroom apartment for $580,000 -$600,000. However with high interest rates, it’s harder for people to keep more than one property.”
He said people that have migrated from South-East Asia often look to rent in the Parramatta/Westmead areas before seeking homes towards northwest of Sydney.
Ray White chief economist Nerida Conisbee said at this point “it does look like price growth will continue”.
“Ray White listings authorities (the point at which a vendor signs to a Ray White agent but the property is not yet advertised) pulled back in Sydney and Melbourne in September relative to August,” she said.
“If this trend continues, and starts to be observed in other states, it is likely that this will be a contributor to continued price growth, alongside ongoing strong population growth and low housing supply.”