Michael Yardney , Founder
The latest data reveals a Sydney property market gathering momentum this spring. Home values have recorded their most significant quarterly jump in nearly two years, showcasing a resilient and strengthening market. However, for many, the dream of homeownership is becoming more challenging as affordability issues persist.
In this month’s update, we’ll delve into the key statistics for Sydney, exploring what’s driving the price growth, the state of the rental market, and what this all means for buyers, sellers, and renters.
Sydney Dwelling Values: A Spring in Their Step
Sydney’s property values are on a clear upward trajectory. September saw another solid month of growth, contributing to the strongest quarterly performance since late 2023.
- Monthly Change: Sydney home values increased by 0.8% in September.
- Quarterly Change: The change over the September quarter was a notable 2.1%.
- Annual Growth: Over the past 12 months, house values have risen by 4.0%, while unit values are up 0.3%.
These figures indicate that the market has found a solid footing, with consistent growth becoming the new norm this spring.
| Key Sydney Property Value Statistics | |
|---|---|
| Change in dwelling values (3 months) | 2.1% |
| Change in dwelling values (12 months) | 3.0% |
| Median dwelling value | $1,241,054 |
| Median house value | $1,558,563 |
| Median unit value | $888,777 |
Source: Cotality Australia
Low Supply Continues to Fuel Price Growth
A key factor underpinning the rise in Sydney property prices is the continued lack of available homes for sale. This imbalance between supply and demand is creating a competitive environment for buyers.
At the end of September:
- The number of homes advertised for sale was 11.8% lower than the same time last year.
- Listing numbers were also 3% below the previous five-year average.
With fewer properties on the market, buyers are facing more competition, which in turn is pushing prices higher.
While rising values are good news for homeowners, they present significant challenges for those trying to enter the market. Affordability remains a major talking point, with Sydney’s dwelling value to income ratio standing at a high 9.6.
The rental market is also feeling the pressure, with weekly rents continuing to climb.
| Sydney Rental Market Snapshot | |
|---|---|
| Median weekly rent (Houses) | $778 |
| Median weekly rent (Units) | $738 |
| Gross rental yield (Houses) | 2.6% |
| Gross rental yield (Units) | 4.1% |
| Annual change in rent (Houses) | 3.0% |
| Annual change in rent (Units) | 4.4% |
Source: Cotality Australia
What Lies Ahead?
The spring selling season is shaping up to be a strong one. Low stock levels and high buyer demand are creating solid selling conditions.
Factors such as a tight jobs market and recent increases in real wages are providing support for housing demand.
However, the outlook is not without its headwinds. The ongoing affordability crisis and uncertainty around future inflation and interest rate movements will likely keep the pace of growth in check. We will be watching these trends closely in the coming months to see how they shape the Sydney property landscape as we head towards the end of the year.
