Cheap homes rising in value faster than prestige homes
Buyers are prioritising affordability amid high interest rates
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Cheaper homes in the lower price quartile of market are growing in value at a faster pace than homes in the upper quartile, according to new CoreLogic figures.
Research director Tim Lawless said the upper quartile typically leads housing market cycles into their upswings and downturns. This occurred in 2023 when higher priced homes outperformed for the first seven months of the year as the market rebounded from its 2022 slump, which was caused by rising interest rates from May.
Then price growth among expensive homes slowed down, and cheaper properties began appreciating at a faster pace through the second half of the year, and now into 2024. Mr Lawless said the lower quartile in every capital city property market recorded superior growth to the upper quartile over the past three months.
At a national level, lower priced homes grew by 2.4 percent, middle priced homes appreciated 1.7 percent and upper quartile properties rose 0.6 percent. The market’s lower quartile is defined as homes within the bottom 25 percent of values, the middle quartile represents 50 percent of the market with medium–range prices, and the upper quartile is the most expensive 25 percent of homes.
“This trend is most evident in Sydney, Melbourne and, to a lesser extent Brisbane, where upper quartile values clearly led the 2023 upswing through the first half of the year,” Mr Lawless said. “The trend hasn’t been evident in Perth or Adelaide where lower quartile home values have consistently recorded a faster pace of capital gains through 2023 and the first two months of 2024,” he said.
Perth continues to record the highest capital growth overall among the capital cities. Home values in the Western Australian capital rose 5.2 percent over the three months to February and are up 18.3 percent over the past year. Perth offers exceptional value to owner occupiers and investors compared to the big East Coast capitals. Its median house price is $718,560 compared to $1,395,804 in Sydney, $942,779 in Melbourne and $899,474 in Brisbane.
Mr Lawless added that Perth had the fastest pace of price growth among lower quartile homes of all the capital cities over the past three months. There was a 2.2 percent difference between the growth rate of lower priced homes and upper priced homes. A noticeable spike in East Coast investors purchasing in Western Australia over the past year may be contributing to this superior pace of growth, given most investors target lower priced properties for affordability and stronger rental yields.
Other data just released by CoreLogic reveals the total value of Australian residential real estate increased to an estimated $10.4 trillion at the end of February. This is a new record high, up from $10.3 trillion in January. By comparison, Australian superannuation is worth $3.7 trillion and the ASX share market is worth $3.1 trillion.
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Held by the same family for 26 years, this Harbour Bridge-facing residence at Longueville is the type of property that rarely comes to market. Set on more than 1,100 sqm on one of Sydney’s most tightly held peninsulas, it combines complete privacy with uninterrupted views across the harbour to the city skyline.
It’s the sort of offering where the land is just as important as the home. Positioned directly opposite Aquatic Park with a prized northeast aspect, the residence captures sweeping harbour views from almost every main living space while remaining remarkably secluded from neighbouring properties.
Large picture windows frame the outlook throughout the home, flooding the interiors with natural light and making the harbour the centrepiece of everyday living.
Designed for family living
The home offers multiple living zones, including a formal lounge and dining rooms, a separate family room and an open-plan living and meals area. Blackbutt timber parquetry flooring, high ceilings and ducted reverse-cycle air conditioning feature throughout.
The kitchen sits at the heart of the home, with induction cooking, a generous island bench, and a walk-in pantry, connecting both the formal entertaining areas and the more casual family spaces.
A ground-floor master suite includes a walk-in robe, dressing area and ensuite, while upstairs are three additional bedrooms with built-in robes, together with a spacious home office or study.
The lower ground level adds another layer, with a temperature-controlled cellar and tasting room, plus a flexible gym, wellness or recreation space.
Resort-style setting overlooking Sydney Harbour
Outside, landscaped gardens wrap around a heated swimming pool, an expansive entertaining terrace, and a level lawn, creating a private resort-style setting against the backdrop of Sydney Harbour.
Additional features include a solar system with battery storage, remote lock-up garaging for three vehicles and generous storage throughout.
Beyond the home itself, the location remains one of Longueville’s biggest drawcards. Longueville Ferry Wharf sits around 150 metres away, providing direct access to the CBD while preserving the quiet character of one of Sydney’s most tightly held waterfront suburbs. The property is also within the catchments of Lane Cove Public School and Hunters Hill High School.
Simon Harrison and Kim Walters of Belle Property Lane Cove are marketing the property on a Contact Agent basis.
At a glance
Address: 3 Mary Street, Longueville NSW 2066
Configuration: 4 bedrooms | 3 bathrooms | 3-car garage
Land: Approximately 1,100 sqm
Highlights: Harbour Bridge and city skyline views, northeast aspect, heated pool, cellar, solar with battery storage
Held: First time offered in 26 years
Price: Contact Agent
Agents: Simon Harrison and Kim Walters, Belle Property Lane Cove
This article is produced by the Kanebridge Media editorial team. Property information has been supplied by the listing agent. Buyers should conduct their own due diligence before relying on any information contained in this article. Enquiries: propertyconcierge@kanebridge.com.au.
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