Home prices in Sydney suburbs surge by at least 20% in a year

Demand for houses and lifestyle locations had continued to be strong off the back of lockdowns and increased remote working

New data shows that house prices across over 50 Sydney suburbs have jumped at least 20 percent in a year, with the median in some pockets increasing by more than AUD1 million, reported Domain.  

The latest Domain House Price Report indicates that Greater Sydney’s median house price hit a record of AUD1,410,133 last quarter, with prices up 24 percent over the past year.  

The strongest suburb gains include the northern beaches, eastern suburbs, north shore, and the Central Coast. The steepest spike was seen at Seaforth, where the median house price increased by 39.3 percent to AUD3.28 million.  

Nicola Powell, Domain’s chief of research and economics, said that Sydney saw its strongest annual house price growth, surpassing the peak gains in 2015 and 2002.  

Premium suburbs had seen extreme rates of growth over the year. The median house price in Dover Heights, Bronte, and Northbridge, jumped by more than AUD1 million, while Seaforth was among 13 other suburbs – including Manly, Mosman, and Gordon – where the median increased by more than AUD500,000.  

Michael Pallier of Sydney Sotheby’s International Realty, said, “It’s easy for vendors to get carried away with these figures … [but prices have really] probably gone up 10 to 15 percent, which is still a significant increase.”  

McGrath Lower North Shore agent John McManus also observes strong demand for families looking to upsize from units and townhouses to free-standing homes.  

“Some buyers I have come across have been looking for six to 12 months; some have taken short-term rentals … because they couldn’t find anything in time after selling,” he said. 

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Demand for houses and lifestyle locations had remained strong due to lockdowns and the rise of remote working. 

Shane Oliver, AMP Capital chief economist, said, “The desire for a better lifestyle has seen suburban areas with houses pick up and those areas that offer a good lifestyle.”  

“People want to move away from the inner city, and to some degree, these areas may also be playing catch up after many years of being overlooked,” he added.