Median house prices in several parts of Sydney are nudging the $2 million mark and look set to eclipse that enormous benchmark within a matter of months.
PropTrack economist Anne Flaherty said the city’s exclusive northern and eastern suburbs used to be the near-exclusive holders of a $2 million median house price.
“But over the past 12 months we’ve seen a growing number of inner-western suburbs push past this level,” Ms Flaherty said.
“Currently 10% of Sydney’s $2 million-plus suburbs are located in the inner-west, but this looks set to grow.”
The city’s inner-west and south-west regions have experienced “extremely strong” price growth over the past 12 months, she said.
An additional 16 suburbs joined the elusive $2 million median price club.
“More suburbs look set to push past $2 million over the coming months, with a further 17 suburbs in the region currently priced at a median between $1.7 million to $2 million.”
Buyer’s agent Nick Viner from Buyers Domain said if strong buyer demand persists, causing price increase trajectories to continue, four particular pockets could be set to hit lofty new heights imminently.
“These are suburbs that have the right fundamentals for house prices to reach the next level,” Mr Viner said.
The inner-Sydney suburb of Newtown is considered one of the city’s coolest and most sought-after. Picture: Getty Images
Newtown
Newtown in Sydney’s trendy inner-west currently has a median house price of $1,712,000, which has surged by 23% over the past 12 months.
It’s on the doorstep of the CBD and a stone’s throw from two university campuses and the Royal Prince Alfred Hospital.
“It has street-wise cache and a cool urban feel,” Mr Viner said. “A wander along King Street reveals great cafes, restaurants, entertainment and hip retail outlets.
“Because this is a city-lifestyle suburb, it’s going to bounce back strongly in this post-COVID lockdown period as businesses flourish once more.”
Newtown is an eclectic and vibrant neighbourhood that’s very in-demand. Picture: Getty Images
Leichhardt
To the north on the other side of Parramatta Road, the leafy suburb of Leichhardt is also nudging towards an historic median value.
“Leichhardt is the very definition of a ‘bridesmaid’ suburb,” Mr Viner said.
“Its neighbouring suburbs comprise $2 million-plus locations such as Annandale, Lilyfield and Haberfield.
“These areas are heritage conservation zones offering extraordinary lifestyle facilities and convenient services. Leichhardt buyers can access all the same amenities at a far lower buy-in price… for now at least.”
The current median house price is $1.82 million and that’s jumped by 19.5% over the past year, according to PropTrack data.
Sydney’s booming housing market is forcing up prices in many suburbs – especially in the inner-west. Picture: Getty Images
Simone Azzi from Belle Property Annandale said the bulk of demand was from buyers in search of more room during COVID.
“They were living in smaller two- to three-bedroom homes and needed to upsize due to a lack of space for two adults to be working from home,” Ms Azzi said.
It’s a trend she expects to continue despite lockdowns seeming to be a thing of the past, noting that companies are “moving to a future of flexible work and less of a need for staff to be in an office full-time”.
173 Flood Street in Leichhardt just sold for a record price for its property type. Picture: realestate.com.au/buy
But the real buzz surrounds character-filled houses on tree-lined streets, in a prestige pocket overrun with cafes, restaurants, family friendly parks.
Ms Azzi pointed to the recent sale of 173 Flood Street, which went for $2.108 million – a record price for a two-bedroom house without parking.
In addition, she just sold 25 Stanley Street – an unrenovated three-bedroom house on a 390m2 block.
That one sold for $3 million – some $300,000 over reserve, representing a “huge price” for a property in that condition.
While full of charm, this Stanley Street home was completely unrenovated… but still fetched $3 million. Picture: realestate.com.au/buy
Alexandria
On the southwestern fringe of the city is the suburb of Alexandria, where several years of intense but considered urban renewal are well and truly paying off.
The suburb is dominated by new unit developments, from the high-density to the luxuriously boutique, but a smattering of tightly held standalone dwellings are in high demand.
The current median house price of $1.85 million hasn’t budged in the past year, but a look at the automated valuation model (AVM) tells a different tale.
The suburb of Alexandria has undergone a period of urban renewal, with a lot of unit development, but houses remain in high demand. Picture: Getty Images
An AVM is an economics data tool that uses mathematical modelling combined with a live database of comparable sales to give a more accurate and real-time indication of real estate values.
According to PropTrack, the year-on-year change in AVM for Alexandria is 12.7%, while the growth in the September quarter alone was 6%.
The recent sale of 52 Anderson Street highlights the demand for quality homes, with the three-bedroom house selling for $2.5 million.
That property’s selling agent Brad Gillespie from The Agency said Alexandria presents “the best value for money this close to the CBD”.
This three-bedroom home in Alexandria sold for $2.5 million. Picture: realestate.com.au/buy
“It’s so convenient with the CBD so close, with beaches and the airport – without the aircraft noise – not far away,” Mr Gillespie said.
“There’s a real village feel that can’t be underestimated.
“And there’s a lot of infrastructure investment going on, like the Waterloo Metro arriving in 2024.”
On top of that, a brand new ‘super school’ catering to students from kindergarten to Year 12, complete with sports fields, is under construction.
Another of Mr Gillespie’s recent sales is 313 Belmont Avenue, a stunning warehouse conversion with a high-end design aesthetic.
The three-bedroom property went to auction and sold for $3.015 million.
The architectural wonder warehouse conversation went for more than $3 million. Picture: realestate.com.au/buy
Mr Viner said the suburb is on the fringe of the affluent and highly desirable inner-east.
“You have ready access to Sydney’s best lifestyle suburbs, cafes and restaurants, and retail outlets. It’s also a hop, step, and jump from the CBD.”
Summer Hill
Finally, in the city’s inner-west, Summer Hill is hurtling towards a $2 million median thanks to its status as a prestige community in an excellent location.
According to PropTrack data, the current median house price is $1.85 million and that’s grown by 12.7% in the past year.
“Summer Hill has a wonderful village feel with a strong community vibe,” Mr Viner said.
“It has great local shopping and other facilities, and the train can get you to the CBD in about 20 minutes.
“It’s another suburb where it’s hard to believe that the median price is still under $2 million – but it really won’t be for long.”