Flipped on its head: Sydney’s best, worst places to sell a home

Australia’s property market might feel a bit hit and miss for buyers but now an expert reveals the best and worst areas to purchase right now.

Sydney home prices are rising fastest in some of the city’s most heralded areas, which once prized suburbs are falling behind.

The continued price growth across Sydney is far from even.

The latest data from PropTrack puts the strongest price rises occurring on Sydney’s outskirts. Especially in the west, the outer southwest and the southwest where values are up 5 per cent in the year to March.

Sydney’s weakest market was on the northern beaches where there was 1 per cent annual growth. Sydney’s east sat at 3 per cent.

Sydney saw an overall 2.9 per cent annual growth to a $1.1m median value, which was below the national boost of 3.9 per cent to $799,000.

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The latest data from PropTrack puts the strongest price rises occurring on Sydney’s outskirts. Picture: Getty

Sydney’s house median sits at $1.43m and apartments are at $817,000.

REA Group economist Eleanor Creagh notes the national trend across the capital cities is that more affordable regions have outperformed over the past year, “with strength in home buying demand buoyed in these regions as buyers push down the value chain.”

The trend is most obvious in Brisbane’s more affordable regions with Ipswich annual growth up 13 per cent, compared to southern Brisbane at 5 per cent. Inner Perth is up 5 per cent while Perth’s northeast is 13 per cent.

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Sydney’s weakest market was on the northern beaches.

RBA RATE CUT BOOSTS CAPACITY, CONFIDENCE

It appears February’s small Reserve Bank rate cut has boosted borrowing capacity along with buyer confidence, helping demand in March with 0.5 per cent monthly growth across Sydney, which matches the 0.5 per cent rise of February.

Ray White economist Nerida Conisbee suggests market momentum is being maintained rather than accelerating dramatically following the interest rate cut, but in a sustained growth pattern. “The data suggests that traditional cycles of significant ups and downs are being replaced by sustained long-term price growth,” Conisbee says.

National dwelling prices rose 0.27 per cent in March, pushing values to a $799,000 record high, according to PropTrack. Prices are now 3.91 per cent higher than a year ago and up 48 per cent over the past five years.

Capital city markets led the monthly gains, with prices rising 0.31 per cent, while regional markets have seen a 0.18 per cent increase.

Both these markets hit new peaks in March.

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Traditional cycles of significant ups and downs are being replaced by sustained long-term price growth,

CAPITAL CITIES HIT FRESH RECORDS

PropTrack’s monthly Home Price Index reveals all capital cities recorded price gains, with half hitting a fresh record.

“Market sentiment has improved and buyers who had delayed purchasing decisions due to the sustained higher interest rate environment are likely re-entering the market,” Creagh says.

“Beyond interest rates, structural factors are continuing to support price growth.

“Population growth remains strong – though it is beginning to moderate – and Australia continues to face a significant shortage in new home completions.”

Creagh expects prices to keep lifting over the coming months, but the rate of growth to be more modest compared to recent years.

“With affordability still a major constraint, the impact of further rate cuts will be somewhat tempered,” she forecasts.

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Originally published as Flipped on its head: Sydney’s best, worst places to sell a home