Sydney Australia Real Estate
House prices in Melbourne are on track to set a new record, with recent figures showing the median price of a home in Melbourne is $901,951.
Regional prices are rising faster than metropolitan values for the first time in almost 15 years, with both Sydney and Melbourne property prices hitting new highs in September. Sydney has seen the biggest growth, with the established house price index rising 9.6% above inflation in adjusted terms this year to the first quarter of 2020, followed by Melbourne with 7.5% inflation and Sydney with 6.4%. Both Sydney and Melbourne have seen big price increases in recent years, with house prices up 105 per cent and 93.5 per cent respectively since 2009. The major cities of Sydney, Melbourne and Brisbane, as well as regional centres, have seen moderate to minimal house price growth in the past year, according to the latest data.
While the Sydney property market is on the up, it is likely to slump in the new year as we look forward to the first quarter of 2020 and the start of the next financial year. Prices in both Sydney and Melbourne have fallen by more than 10 per cent over the years, but hopefully they won't see this kind of house price fall.
This means you can't just buy a property and be confident that the general Sydney property market will lift all the heavyweights over the next few years, so careful property selection will be crucial. If you are not sure how to price your property, we can help you with our current market analysis and give you an estimated value. The latest report from Knight Frank Australia recommends an average price of $1.5 million for a three-bedroom apartment in Sydney. You can contact us if you need to lease or sell property in NSW for more information on leasing, leasing or selling property in Australia.
If you're thinking of buying a high-end property in Melbourne, take a look at Randwick, an inner-city suburb known as Australia's Beverly Hills. Just six kilometres from the centre of Sydney, and with an average price of $1.5 million for a two-bedroom apartment in Sydney, it is the most expensive city property in Australia and the second highest in the country.
Alternatively, Randwick is part of a community that offers a variety of options for those who want to live in the city of Sydney. Whether you prefer to buy, rent or invest in Sydney, the city has something for everyone.
Sydney properties have shown strong long-term capital growth and are likely to continue to do so. While some people will move to regional Australia to have more space, the majority of Australians want to continue living in a lifestyle destination that takes a great third place. Investors in Sydney and Melbourne should pick interstate and regional lifestyle destinations for the best capital - growth will return by 2021. In the longer term, well-located properties in Sydney, Melbourne and other parts of Australia will continue to increase in value and wealth created by homeowners and property investors, and remain highly sought after.
Eastern Sydney is one of the most desirable places to live in the long-term growth market - the capital market. The Lower North Shore is considered the most attractive part of eastern Sydney, located directly opposite the Sydney Harbour Bridge and with waterfront properties overlooking the city centre, the CBD and other major tourist attractions such as the Opera House and the harbour promenade.
The suburbs of East Sydney near the city centre also have some of Australia's highest earning properties, including the Sydney Opera House, Sydney Harbour Bridge and Harbourfront, which feature in our auction rankings. Only 5 per cent of Sydney's suburbs have more than 1,000 properties in the top 10 per cent of the market, compared with 22 per cent five years ago.
Between January and May 2020, Victoria, New South Wales and Queensland accounted for more than half of all residential approvals in Australia's ten largest markets. In the top ten housing approval markets in the first quarter of this year, new South Australia had 31 per cent of the housing stock, followed by Victoria with 23 per cent, Queensland with 19% and New Zealand with 14%.
Sydney remains the most expensive rental market in the country and will be Australia's least affordable housing market from 2019. Sydney came in third in the median multiple (11%), followed by Melbourne (9.5%) and New South Wales (8.2%). Sydney rental prices have fallen 8 per cent in 2019, while house prices have fallen 9 per cent and 2 per cent respectively. This trend in Australia's property markets reflects the same trend we will see in the UK and US property markets, with house prices rising in major cities and rents rising in smaller cities.