Sydney property market: prices on the rise as east and northern beaches bounce back
Sydney property is back on the rise after a COVID-impacted year, as a jump in consumer confidence and a stronger prestige market provides a much-needed boost.
Sydney’s housing market recovery is in full swing, with the Harbour City recording a 0.1 per cent increase in prices over the month of October.
In modest but positive signs, house prices rose by 0.5 per cent over the past 31 days, while unit prices saw a small decline of just 0.5 per cent, leaving the median dwelling price at $860,955, according to CoreLogic’s hedonic home value index released Monday.
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The median price for a house is now $933,927, while the average unit will set you back $735,350.
The increase in values coincided with a number of other positive factors impacting the market, with consumer confidence on the rise, steady clearance rates and low advertised stock.
The October results showed the upper quartile led the rise in Sydney home values for the first time since February this year, up 0.3% compared with a 0.2% lift across the lower quartile.
“The numbers are pointing to stabilising conditions in the dwelling market. It’s really reflective of mortgage rates being at a record low, intersecting with higher levels of consumer confidence and aided by stock levels being pretty low,” CoreLogic Head of Research Eliza Owen said.
“We had an increase of about 1 per cent over October across the eastern suburbs and northern beaches, signalling a recovery in the high end market.
The Central Coast, outer west and Blue Mountains regions are seeing values increase as well, while it is still weak in the inner city and south, where values are down 1 per cent.”
“As long as borders remain closed, investors will be cautious about these areas.”
Across the nation, prices were up 0.4 per cent and were back on the rise for the first time in five months, with Melbourne the only capital to not post a rise in values in October.
With a possible rate cut on the way tomorrow, activity could increase even further.
“That would put upward pressure on prices. We had a hint from the RBA governor that because the economy was more open now a further rate reduction can do more to simulate investment,” Ms Owen added.
Originally published as Sydney property market: prices on the rise as east and northern beaches bounce back