Sydney property prices have surprised the market by withstanding local and global economic headwinds and achieving outstanding results. With Sydney’s resilient property price growth however, some buyers are being priced out of their ideal location or dream property. While the median property price in Sydney is $1,082,129 as of 31 July 2023, the closer to Sydney’s CBD, the more expensive the property prices, and the more challenging it is for buyers to purchase a property anywhere close to the median price.
What exactly has happened to Sydney’s property market recently, and can home buyers and investors still purchase a house under $1.5M?
We recently provided an overview of the changes in the Sydney property market in June 2023. Since then, property prices have increased by 2.6% in just two months according to the CoreLogic Monthly Hedonic Home Value Index, totalling a calendar year to date increase of 7.4%. This data reveals that Sydney continues to defy expectations by experiencing solid price growth.
Houses continue to outpace units in terms of price growth. In the 3 months from June 23 – August 23, houses grew by 5.1% and units rose by 3% according to the CoreLogic Monthly Hedonic Home Value Index.
In our experience, the difference in the rate of growth between houses and units is reflective of the contrasting supply levels along with the limitations of strata titled properties. As buyers’ agents in the Sydney metro area including the Inner West and inner-city areas, we have noticed a far greater supply of units which means there is greater choice for apartment buyers; contrast this to a chronic lack of choice in the house segment.
Can buyers purchase a house under $1.5M in the inner pockets of Sydney?
Buyers should always research the “Sold” prices of properties to inform their understanding of property prices. This is because price guides provided by the sales agent when a property is listed for sale, are not indicative of the final sale price. Buyers should instead, review the sold prices on the real estate portals such as Domain.com.au to gather knowledge of what prices have recently been achieved within certain suburbs.
Looking at the sub $1.5M house market in Sydney, we can see there are still opportunities to purchase a house within close proximity to the Sydney CBD and the inner-city suburbs. Here are a few of the recent sales:
249A Bridge Road Forest Lodge: 2-bedroom house without parking on approximately 148sqm land in the Inner West. The location is very central, only 2.5km to the CBD. The condition, however, is unrenovated and appears to require work to bring it up to a presentable standard. This house sold for $1.46M in August 2023.
42 Railway Street Sydenham: 2-bedroom house with parking. Also located in the Inner West, this property is just a few minutes’ walk to Sydenham station and is approximately 8km to Sydney’s CBD. The property has received minor cosmetic renovations. Internally, the space is small, being approximately just 63sqm. This property sold for $1.28M in July 2023.
67 Ferris Street Annandale: 2-bedroom house without parking on approximately 91sqm land. Again in the Inner West, this house is approximately 6km from Sydney’s CBD. This is a character property built in the late 1800’s and has renovated interiors. This property was sold for $1.375m in July, 2023.
On the other hand, buyers who prioritise inner-city locations, but who require more space than offered by houses in the same price category, will find there is greater choice in the townhouse and apartment market.
Here are examples of what buyers can find under $1.5M in townhouses and apartments:
82/3 Williams Parade Dulwich Hill: 3 bedrooms, 2 bathrooms and 2 car spaces, approximately 100sqm in size. The location is within walking distance to the Light Rail and the cafe and shopping precinct on Marrickville Road. The property features an updated kitchen and bathroom. This unit sold for $1.25M in August 2023.
403/11-23 Gordon Street Marrickville: 3 bedrooms, 3 bathrooms and 2 car spaces. The location is within walking distance to Marrickville parks, cafes, and pubs. It is also close to Newtown and Enmore and convenient bus routes to the city. The property forms part of a warehouse conversion and has modern interiors. The complex offers a swimming pool, and gym facilities. This unit sold for $1.435M in August 2023.
51/1 Maddison Street Redfern: 3 bedrooms, 2 bathrooms and 2 car spaces. The location is within a 10–15 minute drive into the Sydney CBD and is just 2km from Central train station. Surrounded by lifestyle amenities including Centennial Park, Surry Hills cafes and restaurants and shopping centres, the property features renovated interiors. There is a swimming pool, and gym facilities in the complex. This unit sold for $1.289M in May 2023.
6/11 Rosebank Street Glebe: 3 bedrooms, 2 bathrooms and 2 car spaces. The location in the Inner West is just 550 metres to the Light Rail. The property is also within walking distance to Broadway shopping centre as well as Glebe Point Road shops, cafes and restaurants and Blackwattle Bay. The property is a townhouse with two courtyards and is in a small complex. This property sold for $1.392M in April 2023.
If you are in the market for a property under $1.5M in the inner suburbs of Sydney, we will find your ideal property and help you to purchase it at the best possible price. Contact Nick Viner on 0405 134 645.