96 per cent of Sydney suburbs increase their value by half
Nearly every Sydney suburb has recorded price gains of more than 50 per cent over the last five years, research conducted by LJ Hooker has shown.
In a period of historic growth for Sydney, 96 per cent of suburbs recorded median price growth above 50 per cent, while four out of every ten neighbourhoods notched an increase of more than 75 percent.
At the top end of the market, eight per cent of suburbs more than doubled their median home price since 2012, the research showed.
Buyers’ love affair with waterfront enclaves drove the inner-city’s top results, with Point Piper recording 176 per cent increase in its median home price ($3.175 million) while Russell Lea notched 123 per cent ($2.3 million).
But significant growth was not confined to blue-chip inner-city areas. Western suburbs’ Blackett more than doubled its median price over the period; ending 2017 with a median home price of $525,000 (122 per cent increase).
LJ Hooker Head of Research Mathew Tiller said despite recent headlines that the market is contracting, any incremental drop in prices pales in comparison to the growth that’s been achieved in the past five years right across Sydney.
“Even the suburbs that achieved growth at the ‘lower’ end, of around 25 per cent, it is a result some other capital cities would gladly accept,” said Mr Tiller.
“It’s this exceptional period of growth will encourage more listings in 2018.
“CoreLogic data showed Sydney listings were up more than 20 percent this month compared to the same time last year. But this increase in stock is off a historically low-base; current volumes are slowly edging toward long-term trends.
“Real estate is largely a long game and if you wait, your home will generally increase in value. It mightn’t be at the levels we’ve seen over the past five years but it likely be at minimum more than you’ll receive by banking funds.”
Mr Tiller said the Sydney market was in line to accept the traditional New Year bump in listings.
“But with the ebb in price growth taking effect, LJ Hooker anticipates more sellers will want to upgrade as soon as possible in 2018.”