Real estate Sydney: Cheapest suburbs within 10km of Sydney’s CBD
New analysis has revealed the most affordable Sydney suburbs for both houses and units close to the CBD.
In 2021, record low interest rates fuelled extreme buyer demand and an exceptional pace of home price growth.
Rising interest rates throughout 2022 have quickly rebalanced the housing market from last year’s extreme growth and remain front and centre of the fall in home prices.
Throughout the latter half of this year as interest rates have quickly risen, demand to buy property has slowed from the strong levels seen last year and into early 2022. As inflation rose and interest rates moved higher, consumer confidence has fallen, and expectations of continued price falls have weighed.
MORE: Waterfront home, toys, $1m gold could be yours for $2
Israel Folau offloads home for massive profit
Supermarket shoppers buy 100yo home sight unseen
Sydney prices have fallen for the ninth month in a row after peaking in February 2022, with prices falling a further 0.14 per cent in November to be 6.44 per cent below their peak.
Now the cash rate is sitting at 3.10 per cent with a substantial 300 basis points of tightening pushed through to date, maximum borrowing capacities have dropped by close to 30 per cent
Interest rates have quickly risen, reducing borrowing capacities and increasing mortgage servicing costs.
This has seen buyers gravitating toward the more affordable end of the market and demand and price growth have held up better in markets that are comparatively cheaper.
With life largely back to normal post-Covid, the impetus to leave the cities has reduced for some buyers. While the pandemic has shifted the need to be close to the city for some, buying a home close to the CBD is back on the wishlist for many.
But fast rising interest rates have dented affordability and shrunk buyers’ budgets, meaning many no longer have the capacity to pay the prices they were before interest rates started to increase.
New analysis of recent house price data from realestate.com has revealed the top suburbs to buy both houses and units within a 10-kilometre radius of the Sydney city centre.
The cheapest suburb that falls within 10 kilometres of the Harbour City’s centre is Sydenham, where the median house price is $1.335 million.
For buyers looking at units, Canterbury, where the median unit price is $650,000 is the cheapest suburb within 10 kilometres of Sydney’s CBD.
MORE: ‘Pocket listing’ key to cracking real estate market
Original Aussie hippie home seeks new collective
$210 an hour: what best holiday rentals can get you
Prices in these more affordable areas of Sydney may stand up better over the next year as additional increases in interest rates see mortgages become less affordable and borrowing capacities fall further.
Eleanor Creagh is a Senior Economist with PropTrack.
Originally published as Real estate Sydney: Cheapest suburbs within 10km of Sydney’s CBD
QLD buyer’s agent’s King Charles connection
A Queensland buyer’s agent and army veteran has been in business less than a year but she has already attracted the attention of King Charles’s charity, The King’s Trust Australia.
Homes Aussies are being forced to buy
The housing crisis is ‘pushing Aussies down’ into buying homes they might not otherwise want. But that might not be a bad thing.
Block duo nab ‘country estate’ for $2.1m discount
Designer Boys Gav and Waz, who were the first openly gay couple on Aussie TV in the first series of The Block, have nabbed a magnificent ‘country estate’ for a $2.1m discount.