Sydney Metro median house prices increase by 1.3 per cent: PRD
Sydney Metro median property prices increased by 1.3 per cent for houses, according to PRD's Affordable and Liveable Property Guide Sydney 1st Half 2020.
Affordable and liveable suburbs are those with a maximum property sale price of the average state home loan, plus a 15 per cent deposit.
In the 1st half of 2020, 139 suburbs were within this price range, greater than the 119 suburbs identified in the 2nd Half 2019 report.
The most affordable and liveable house suburbs include:
| Approx. radius from the Sydney CBD | Median House Price | 2 Bed Median Price | 3 Bed Median Price | 4+ Bed Median Price | |
| Miranda | 20km | $1,160,000 | $1,055,000 | $1,092,500 | $1,210,000 |
| Rockdale | 10.9km | $1,100,000 | $1,075,000 | $1,160,000 | $1,237,500 |
| Tempe | 7.7km | $1,093,000 | $1,042,500 | $1,243,850 | $1,425,000 |
Affordable and liveable unit suburbs include:
| Approx. radius from the Sydney CBD | Median House Price | 1 Bed Median Price | 2 Bed Median Price | 3+ Bed Median Price | |
| Rockdale | 10.9km | $610,500 | $482,500 | $615,000 | $718,880 |
| Bexley | 11.1km | $610,000 | $442,500 | $600,000 | $768,000 |
| Peakhurst | 16km | $659,000 | $495,000 | $635,000 | $842,500 |
A cooling in median property prices in early to mid-2019 has led to more suburbs identified as affordable in the 1st half of 2020. However, this also meant there were a large number of suburbs with negative median price growth.
In line with the methodology set, suburbs with median price growth close to neutral (i.e. zero) were chosen. A premium of 95 per cent for houses and 11 per cent for units was added to the NSW average home loan, to ensure suburbs chosen met all other set criteria. This is well below the 2nd Half 2019 report premium and below the percentage premium needed to reach Sydney Metro’s median property price. Thus there is improved access to liveable suburbs for buyers.
Median property prices in Sydney Metro increased by 1.3 per cent for houses to $1,355,000 from 2018 to 2019/20 and remained steady for units at $796,500. By comparison, from 2017 to 2018 the median house price in Sydney Metro softened by -4.5 per cent, and the median unit price softened by -2.6 per cent.
The market has recovered from the significant price drop seen in mid-2019. There is a unique opportunity in Sydney Metro, as the current market is more affordable than in 2017 (median house price of $1,401,000 and median unit price of $819,500), yet at the same time owners can be confident in their asset’s ongoing value.
Click here to enlarge:
Sydney Metro sales and median price growth. Source: PRD.
The Sydney Metro rental market recorded a median rental price of $500 per week for houses and $530 per week for units, representing quarterly median price growth of one per cent for houses and 1.9 per cent for units. This occurred despite an annual increase in vacancy rate, which was at 3.9 per cent in April 2020.
Sydney Metro recorded average yields of 2.5 per cent for houses and 3.5 per cent for units, which saw a slight softening in the 12 months to April 2020. Despite this however, Sydney Metro still offers investors long-term historical strength and stability in its rental market.
Click here to enlarge:
Sydney rental market analysis. Source: PRD.
The top three lowest priced suburbs in Greater Sydney are Villawood whose 2019/20 median price is $697,500, Granville ($730,000) and Guildford ($740,000). While there is no project development value offered by PRD for Villawood, its 2019/20 median rent is $500 with a 2.9 per cent rental yield.
Granville has a project development value of $22.6 million and a median rent of $460 with a 3.3 per cent rental yield. Guildford has a project development value of $9.8 million and median rent of $450 with a 2.8 per cent rental yield.
Meanwhile, the top three highest priced suburbs are St Leonards (with a $12.05 million median), Point Piper ($8.825 million) and Lavender Bay ($7 million).
An estimated $17.5 billion of developments is planned in the 1st half of 2020 for Greater Sydney, in many sectors. Major projects include the $1 billion Stage One M6 Extension infrastructure project, the $636.7 million Park Sydney Mixed Use Development (1,400 units), and the $200.0M Westfield Parramatta Stage One extension. These projects highlight the strength of the development pipeline for the 1st half of 2020. This will generate more commercial activity, and infrastructure projects will create additional employment; resulting in positive spill-over effects on the property market.
