The Year That Was in the Sydney Property Market
Lets look at some key statistics for the Sydney Property Market for the last Financial Year (2023-2024). These statistics provide a snapshot of the Sydney Property Market's performance over the last financial year, reflecting a generally positive trend with rising prices, strong rental demand and competitive market conditions and they highlight the continued strength and resilience of the Sydney Property Market despite economic challenges.
1. Median House Prices:
- Sydney Overall: The median house price in Sydney was approximately $1.35 million. This marked an increase of around 7.5% from the previous financial year.
2. Median Apartment Prices:
- Sydney Overall: The median price for apartments in Sydney was about $870,000,reflecting a year-on-year increase of around 6.5%.
3. Rental Prices:
- Houses: The median weekly rent for houses in Sydney was approximately $1,250,indicating an annual increase of around 7%.
- Apartments: The median weekly rent for apartments was around $780, with an increase of about 6.8% over the past year.
4. Vacancy Rates:
- Sydney Overall: The vacancy rate for Sydney was around 1.3%, showing a tighten in the rental market with high demand and limited supply.
5. Auction Clearance Rates:
- Sydney Overall: The vacancy rate for Sydney was around 1.3%, showing a tighten in the rental market with high demand and limited supply.
6. Rental Yields:
- Overall: Rental yields in Sydney ranged from 3.4% to 4.2%, depending on the property type and location. Higher yields were typically found in more affordable and outer suburbs.
7. Sales Volume:
- Property Sales: The volume of property sales increased modestly compared to the previous year, driven by renewed buyer interest and market recovery.
8. New Listings:
- Supply: The number of new property listings saw a slight increase, but overall supply remained constrained relative to demand, contributing to continued price growth.
9. Days on Market:
- Houses: The average time a house spent on the market before being sold was approximately 30 days, reflecting high demand and quick turnover.
- Apartments: Apartments typically spent around 35-40 days on the market, slightly longer than houses, but still indicating strong buyer interest.
10. First Home Buyer Activity:
- Market Share: First home buyers accounted for around 15-20% of the total market transactions, a slight decrease from the previous year due to rising prices.
- Government Grants: The use of government grants and incentives, such as the First Home Owner Grant and stamp duty concessions, remained prevalent among this group.
11. Investor Activity:
- Investor Purchases: Investors made up approximately 30-35% of the market transactions, with a preference for apartments in high-growth areas with strong rental demand, such as Parramatta and the Northern Beaches.
- Loan Commitments: There was a noticeable increase in investor loan commitments, up by about 5% compared to the previous financial year, despite rising interest rates.
12. Interest Rates Impact:
- Borrowing Costs: Rising interest rates over the financial year had a cooling effect on buyer borrowing capacity, particularly affecting the lower end of the market.
- Investor Sentiment: Despite higher interest rates, investor activity remained robust.
14. Price Growth by Sector:
- Luxury Market: The luxury property segment experienced significant price appreciation, particularly in high-demand areas like the Eastern Suburbs and North Shore.
- Affordable Housing: More affordable housing segments also saw solid price growth, although not as pronounced as in the luxury market.
15. Interest Rates Impact:
Borrowing Costs: Rising interest rates over the financial year had a cooling effect on buyer borrowing capacity, particularly affecting the lower end of the market.
- Investor Sentiment:
- Despite higher interest rates, investor activity remained robust.
15. Population Growth:
- Migration: Sydney’s population growth, fuelled by both domestic migration and international immigration, continued to underpin demand for housing across the city.
- Demographic Trends: The city saw an increasing number of younger professionals and families moving to outer suburbs, driven by affordability and lifestyle considerations.
16. Distressed Sales:
- Market Presence: Distressed sales, where properties were sold under financial pressure, accounted for less than 2% of the market. This was a slight decrease from the previous year, indicating a stable market with low foreclosure rates.
- Impact on Prices: These sales had a minimal impact on overall market prices due to their low volume and the strong underlying demand.
17. Renovation Trends:
- Home Renovation Activity: There was a significant increase in renovation activity, with many homeowners opting to renovate rather than move due to high transaction costs and limited supply. Renovation approvals were up by around 15% from the previous year.
- Impact on Value: Properties that had undergone recent renovations generally saw a premium in sale prices, often achieving 10-15% higher than similar unrenovated homes.
18. Affordability Index:
- Sydney Affordability: The affordability index, which measures the ability of an average household to afford a median-priced property, showed a slight decline, indicating that affordability had worsened. This was driven by both rising property prices and higher interest rates.
19. Mortgage Arrears:
- Default Rates: Mortgage arrears in Sydney remained low, with less than 1% of borrowers falling behind on payments. This was consistent with the strong employment market and robust economic conditions.
20. Construction Costs:
- Cost Inflation: Construction costs for new residential developments increased by approximately 8-10%, driven by supply chain disruptions, labour shortages and increased material costs. This put upward pressure on new property prices and slowed some projects.
These statistics provide a snapshot of the Sydney Property Market's performance over the last financial year, reflecting a generally positive trend with rising prices, strong rental demand and competitive market conditions.
Sydney Property Market’s performance was shaped by a combination of economic conditions, demographic trends, government policies and global influences. These statistics highlight the continued strength and resilience of the Sydney Property Market despite economic challenges.
Source: RP Data
