Sydney suburbs that have $2m median house price
It’s bad news for home buyers as even more areas of Sydney smash through the millions to record eye-watering house prices.
More than a quarter of Sydney suburbs have hit the insane milestone of having houses now typically worth $2 million.
The eastern suburb of Matraville, Eastwood which is located in the city’s north west, and Caringbah South are some of the most recent suburbs to hit the $2 million price mark, according to Domain as well as Glebe, Stanmore and Rozelle in the inner west.
Sydney house prices rose an eye-watering 29.6 per cent last year, adding nearly $1000 each day to the value, according to CoreLogic.
Already popular areas have been hit by skyrocketing prices with the northwest suburbs of Cherrybrook and Glenhaven, Blakehurst and Woolooware in the south, and the inner west haunts of Croydon and Five Dock all breaking into the $2 million club in the last three months.
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Byron Bay hit the $2 million milestone earlier last year, while its prestige property market is slated to grow more than any other area in the world in the next five years, with luxury dwellings predicted to rise by a whopping 35 per cent in the next half-decade.
Back in Sydney, West Pennant Hills and the northern suburbs of Cromer and Mona Vale also joined Byron Bay in the $2 million club early last year.
Dr Nicola Powell, Domain’s chief of research and economics, said the huge price tag usually associated with premium suburbs had expanded considerably,
“The dynamics of what we deem as an elite price point for a suburb has absolutely changed because we’ve seen Sydney’s median price lift to $1.6 million,” she told The Sydney Morning Herald.
The Sydney suburbs that had a typical house price of more than $2 million, were largely based on the north shore, northern beaches, city and eastern suburbs and inner west.
But $2 million in these suburbs will only buy an entry level home that is generally older and unrenovated or are located on odd shaped blocks or main roads, according to real estate agents.
Homes in Ryde soared by a whopping $500,000 last year, with options limited for those on a budget.
A three-bedroom house in Ryde sold for $2.12 in December yet despite the hefty price tag, the owners plan to knock it down and build a new home.
Other Sydney suburbs are edging closer to the $2 million mark with North Epping sitting at $1.99 million, the southern suburb of Oatley’s typical house price hitting $1.98 million and Forest Lodge in the inner west being valued at $1.97 million.
The bayside southern suburb of Burraneer rose by a staggering $900,000 pushing it into a typical value of $3 million last year.
It was joined by the inner west suburb of Birchgrove, the northern beaches areas of North Balgowlah and Avalon Beach, and Cammeray and Chatswood on the north shore which all hit values above $3 million in the last three months.
Dr Powell said while the market was starting to slow down as buyer demand dropped and a greater number of properties came to market, she still expected to see more suburbs crash into the higher priced markets in the coming months.
“We are going to see that weakness first in our high-priced markets. What you see in terms of price growth is that ripple effect, you see premium suburbs lead in terms of price growth and then they also typically lead the downturn,” she added.
But signs of the slowdown are already appearing with houses prices in some Sydney suburbs dropping by a whopping $190,000 in the last three months as more experts warn that Australia’s property prices are set to plunge.
The inner city suburb of Beaconsfield suffered the biggest slump across the country with house prices plunging 9.2 per cent meaning they are now worth $162,662 less than three months ago, according to CoreLogic.
The popular inner west suburb of Newtown suffered a $120,207 loss in house prices in the past three months – a massive drop of 6.6 per cent taking typical values to $1.82 million.
Surry Hills faced a loss of $134,054 with prices falling by 6.1 per cent to $2.19 million, while the waterfront suburb of Birchgrove experienced a drop of 6 per cent or $190,581 to $3.17 million.