Sydney property news has taken a positive turn recently as property values increased slightly higher for the second consecutive month as of August 2019. This is a strong indicator that the Sydney real estate market has commenced a gradual recovery after housing values fell almost 15% from their July 2017 peak.
How are Sydney property prices tracking?
Sydney property prices recorded a small but positive increase in July, rising 0.2% over the month, according to CoreLogic’s 2019 Home Value Index. This increase brings the annual rate of decline back to -9%. These results deliver a sign that housing conditions are stabilising following improvements in credit availability and lower mortgage rates.
Sydney apartment prices are showing a slightly stronger performance relative to houses, with values declining less during the down phase and modestly leading the charge as the market stabilises.
However, the stronger performance across the unit sector could be a result of ongoing affordability challenges in Sydney. CoreLogic head of research Tim Lawless said in a statement that unit prices could drop slightly in coming months as recently built off-the-plan apartments start to be resold.
“Values for higher density dwellings are generally lower,” said Lawless, “however we may see some dampening of unit values in coming months across those precincts where supply is elevated as the large number of high-rise off-the-plan apartment sales moves into the re-sale market.”
Regionally, Sydney’s Lower North Shore and Inner West have seen strongest price growth over the past quarter, with median values increasing by 4.55% and 3.48% respectively.
|MEDIAN||QOQ CHANGE||YOY CHANGE|
|City and East||$2,125,000||-5.87%||-8.44%|
|Lower North Shore||$2,300,000||4.55%||-4.96%|
|Upper North Shore||$1,600,000||1.59%||-3.03%|
Source: Domain House Price Report, June Quarter 2019
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