Sydney Suburbs See Decline in House Rents
A handful of Sydney’s most sought-after suburbs, including Clovelly, Palm Beach, and North Curl Curl, have seen a decline in house rents over the past year. Clovelly led the trend with a 16.2% decrease, bringing the median weekly rent down to $1550. This shift is attributed to tenants reaching an affordability ceiling, prompting many to seek more cost-effective locations and housing options. Notably, only two suburbs, Katoomba and Lavender Bay, recorded a decline in unit rents, reflecting a broader trend of rising unit rents across Sydney due to the cost-of-living crisis.
Sydney House Prices Hit Record Highs
Sydney’s housing market continues to set new records, with the median house price reaching $1.66 million despite persistent high-interest rates. However, cracks are starting to show as the pace of growth has slowed, and some premium areas, like the northern beaches and inner south, have experienced price declines. Experts attribute the modest price gains to buyers with substantial equity or intergenerational wealth, while the majority feel the strain of increased mortgage repayments.
Shifting Homebuyer Preferences
Westpac’s 2024 Home Ownership Report highlights a significant shift in homebuyer preferences, with a growing number of Australians prioritizing space and new surroundings over investment potential. This trend is particularly strong among younger generations, with over half of Gen Z and Millennials moving homes in the past three years. The desire for peaceful, spacious environments is driving more Australians to seek suburban lifestyles, often at the expense of being close to the CBD.
Market Outlook
Looking ahead, experts anticipate continued modest price growth for Sydney’s housing market, though higher interest rates may pose challenges. As affordability constraints tighten, the market may see a cooling trend, especially for less renovated properties. Additionally, the demand for units is expected to rise, given their relative affordability compared to houses.
For more details on specific property listings and to stay updated with the latest market trends, visit our website or contact our team of experts.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market.
