Home values soar in northern Sydney: PropTrack

With home prices reaching record highs in September, PropTrack has revealed the regions that have seen the largest amount of growth.

PropTrack’s latest Home Price Index for September 2023 has revealed the top regions in Australia that are leading in price growth, with Sydney dominating the top five regions of that list.

The Index found that the Sydney regions of North Sydney, Hornsby, Parramatta, and the eastern suburbs recorded double-digit growth over 2023 so far.

North Sydney and Hornsby led the growth with a year-to-date change of 10.94 per cent for houses, with a median value of $2,872,837; followed by Parramatta at 10.79 per cent (median value of $1,289,922); Perth’s South East region at 10.27 per cent (median value of $592,889); and Sydney’s eastern suburbs also at 10.27 per cent (median value of $3,250,145).

Since the price downturn in 2022, the Sydney market has led the recovery, according to PropTrack’s index, with house prices rising 7.93 per cent overall, and 5.24 per cent for units year to date, with both house and unit prices increasing across all Greater Sydney regions.

PropTrack senior economist Eleanor Creagh said that one of the drivers of the home price recovery seen in 2023 has been the “subdued listings environment that meant buyers were competing for fewer properties”, however, she also noted that this has also been underpinned by “record levels of net overseas migration, a challenged rental market and a new housing shortfall”.

“Home price growth has not only turned around quicker than many expected, but 2023 is shaping up be a historically strong year in many markets,” Ms Creagh said.

“Looking ahead, population growth is rebounding strongly and, given the shortage of new homes, prices are expected to rise with more markets reclaiming peak levels after recouping last year’s fast falls.

“Home prices in 2024 will also be influenced by whether interest rates begin to move lower. Many expect interest rates will be cut at some point in 2024, causing borrowing capacities to increase and mortgage servicing costs to decrease, likely fuelling a continued rise in prices.”

Overall, PropTrack’s Home Price Index revealed prices have risen 0.35 per cent nationally in September, up 4.31 per cent year to date.

Similarly, CoreLogic’s national Home Value Index (HVI) recorded an increase of 0.8 per cent during September, nearly recouping from previous losses.

This followed a revised 0.7 per cent rise in August (originally reported as 0.8 per cent), bringing the quarterly growth rate of national home values to 2.2 per cent.

However, this quarterly growth has moderated compared to the 3.0 per cent gain reported in the June quarter, signalling a slowdown as advertised stock levels rose.

This shift followed 10 consecutive months of decline, resulting in an 8.4 per cent decrease in property prices, from peak to trough.

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