Values in more than 80 percent of suburbs in the Central Coast, Northern Beaches, Outer Southwest and Outer West, and the Blue Mountains at least doubled over the decade, as did values in the 11 suburbs analyzed in the Balkham Hills and Hawkesbury region. Only suburbs with at least 20 sales in the past year were included.
Owen said the Central Coast had attracted demand from younger buyers, which has accelerated during the pandemic as Sydneysiders made sweeping changes.
Suburbs like Shalvey and Tregear were emerging from a lower price point, while neighborhoods like Burwood benefited from their proximity to the CBD and good transport links. Many high-growth areas had fewer units and less supply of new housing.
Owen said that growth was not a given and slower price increases would be expected in the coming years, due to affordability constraints and higher interest rates. The analysis excluded apartments, which by far have more modest growth than houses.
ANZ Senior Economist Felicity Emmett said declining interest rates and strong population growth had been the main drivers of price growth. Limited supply of new homes was also a factor, as was the pandemic-era flight to lifestyle regions and to more affordable regions when prices soared.
She has forecast Sydney prices to fall 20 per cent, before rising 6 per cent in 2024, assuming the cash rate falls. However, growth over the next decade is likely to be more moderate.
“We’re not going to have that long-term tailwind of lower rates. Rates will go up and down from here…and we’re not likely to see these big long-term gains that we’ve seen,” he said.
Central Coast agent Ian Willis, a partner at Wilsons Estate Agency, said the region, once considered a place to retire, had increasingly attracted interest from younger families forced out of the country. Sydney metropolitan area. The trend has accelerated with remote work, but demand, particularly from out-of-area buyers, has now eased.
“Prices are probably down 10 percent,” he said.
“[Still] a three-bedroom brick house, let’s say built in the ’60s or ’70s, that was once listed for $390,000… is now $1 million.”
Burwood local John Arraj, 66, put his family’s four bedroom house on the market last week with a preliminary price guide of $3.25 million. He hopes to shrink him in the area, and was not surprised to hear that he had seen one of the tallest growths in Sydney.
“It’s a fantastic suburb. I appreciate that it’s not waterfront or anything like that, but if you like good, well-established houses, great services and the ability to get around Sydney very, very easily, it would be one of my favorite suburbs,” he said. .
In Burwood, a combination of factors like desirable school catchment areas, good public transportation links, solid-size blocks and an influx of new restaurants contributed to the price increase, said its listing agent Joe Kanaan of Devine Real Estate Drummoyne. . However, low interest rates were the most important factor.
Now that rates are rising, buyers and sellers have become more cautious, Kanaan said. However, most who entered the market knew that while they would sell for less, they would also buy for less.