Sydney Inner Suburbs Endure Sharp House Price Drops
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Sydney Inner Suburbs Endure Sharp House Price Drops

The prime part of the market appears most affected.

By Terry Christodoulou
Mon, Mar 7, 2022Grey Clock < 1 min

House prices in some of Sydney’s inner suburbs have lost, in some cases, more than $190,000 in the past three months to February as the market slowdown steepens with poor affordability, tighter lending and higher fixed interest rates according to the latest CoreLogic data.

The Sydney suburb of Beaconsfield, nearby the city’s airport, posted a 9.2% drop in median house values to $1.77 million, the largest percentage decline recorded in any house market in the country. Prices in Beaconsfield are now $162,662 lower than three months ago.

Elsewhere, Newtown saw values fall by 6.6% or $120,207 down to $1.821 million, Surry Hills is down 6.1% to $134,054 to $2.197 and Birchgrove lost 6% or $190,581 to 3.176 million.

According to CoreLogic’s head of research, Eliza Owen, the premium end was more volatile compared to the lower end.

“I think affordability constraints, tighter lending conditions and higher fixed rates have likely been enough to cool premium markets, and the sharpness of the fall relates to the volatility in the high end of the market, and the extremely strong run up in price growth,” she said.

Away from Sydney’s market, Melbourne has seen its own market cooling with house prices in Prahran, Cremorne, South Yarra and Windsor tumbling by more than 5% while Toorak dipped 4.7% during the same period.

According to Ms Owen, the affordable end of the market would continue to outperform the upper end as the broader market begins to slow.

“Based on historical performance of property values, I think the next 12 months should see more steady performance in affordable segments of Sydney and Melbourne,” she said.

“More affordable segments tend to have less volatility in growth rates – the highs are not as high, but the lows are not as low,” she said.

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By Kanebridge News
Thu, Aug 11, 2022 < 1 min

New research from Knight Frank’s International Waterfront Index shows waterfront properties are costing more than double their inland counterparts in Sydney while in Melbourne waterside properties attract a 40% premium.

Australia’s coastline attracts some of the highest waterfront premiums in the world with Sydney topping the index — an average premium of 121% — compared to an equivalent home set away from the water.

Auckland ranked second on the list of 17 international locations — a premium of 76%. The list saw Gold Coast (71%), Perth (69%) and the Cap d’Antibes (59%) on the French Riviera round out the top 5.

Australia continued to feature prominently in the research with Brisbane’s waterfront premium coming in at 55%, with Melbourne also in the top 10 at 39%.

According to Knight Frank Australia’s head of residential research, Michelle Ciesielski, there has always been strong appetite for Sydney’s waterfront homes.

Australia’s luxury residential market has advanced, it lacks the depth of prestige markets in more established global cities said Cieselski.

“As a result, our Australian cities can achieve a significantly higher premium on the waterfront compared to a similar property inland without access to, or a view of, water,” she said.

“Also, Australia is known for its balmy outdoor lifestyle, so many buyers in this super-prime space are willing to pay a premium to secure the ideal position along the waterfront.”

The data also suggests that beachfront homes were most desirable, commanding a premium of 63% compared to harbour locations fetching 62% premium and coastal homes with a 40% premium.