Staff ReporterDecember 7, 2020
Sydney house prices rebounded in the September quarter, with the median jumping almost five percent, according to Domain.
Domain's September House Price Report found the median house price rose 4.8 per cent to $1,079,491.
The price correction was led by Sydney's North West, whose median house price rose 9.7 per cent, the best performer across the city.
Sydney's South (+7.1 per cent) and Inner West (6.9 per cent) were the only other regions over five per cent.
The Inner West's market rebound has seen it become on just three regions who have seen year on year house price gains (+4 per cent).
There was slow growth in the city's east which was hit hardest during the downturn. Their 1.4 per cent quarterly gains doesn't come close to offsetting the nine per cent declines year on year.
| Source: Domain House Price Report, September Qr 2019. |
| Median house prices |
| Region | Median | QoQ Change | YoY Change |
| Blue Mountains | $650,000 | -0.3% | -4.4% |
| Canterbury Bankstown | $860,000 | 4.9% | -3.9% |
| Central Coast | $616,500 | 2.8% | -2.1% |
| City and East | $2,180,000 | 1.4% | -9.0% |
| Inner West | $1,550,000 | 6.9% | 4.0% |
| Lower North Shore | $2,330,000 | 1.1% | 1.3% |
| North West | $1,250,000 | 9.7% | 3.2% |
| Northern Beaches | $1,696,000 | 4.7% | -0.6% |
| South | $1,125,000 | 7.1% | -5.5% |
| South West | $695,000 | 3.4% | 0.0% |
| Upper North Shore | $1,620,000 | -0.3% | -1.8% |
| West | $700,000 | 2.9% | -2.1% |
"Buyers have missed out on the bottom of the market, with prices reaching the bottom in the last quarter," Domain advised.
They suggested however buyers can still take advantage of improved affordability.
"House prices are 9.9 per cent below the mid-2017 peak, and units prices 10.6 per cent below," Domain stated.
The rapid housing recovery is four times greater than the next strongest quarterly rebound of 1.2 per cent following the 1994 market dip.
Domain senior research analyst Nicola Powell said the quicker-than-expected upswing could be attributed to the slight relaxation of lending standards, interest rate cuts, a post-election boost in buyer confidence and improved affordability.
“We have seen a strong rise over the quarter,” Dr Powell said. “There is momentum gaining, so I do think next quarter we’re likely to see [a return to annual price gains].”
Houses have regained almost one-third of the price falls that occurred during the recent downturn, and units have regained roughly one-fifth of the price lost over the recent slump.
Despite this rebound, both house and unit prices remain lower than a year ago.
Unit Prices
The Northern Beaches led the apartment recovery, with unit prices across the city growing 2.6 per cent, the equivalent of $17,314, to a $694,840 median.
The apartment median price in the Northern Beaches jumped over 13 per cent over the September quarter to post 3.8 per cent year on year gains.
The Northern Beaches was the only region to post year on year gains.
| Source: Domain House Price Report, September Qr 2019. |
| Median house units |
| Region | Sep-19 | QoQ | YoY |
| Canterbury Bankstown | $510,000 | -1.0% | -7.9% |
| Central Coast | $426,500 | -3.1% | -13.4% |
| City and East | $940,000 | 2.7% | -1.9% |
| Inner West | $762,000 | 3.3% | -1.3% |
| Lower North Shore | $920,000 | 5.4% | -2.3% |
| North West | $677,250 | -0.4% | -1.6% |
| Northern Beaches | $885,000 | 13.2% | 3.8% |
| South | $660,000 | 0.0% | -8.3% |
| South West | $455,000 | 2.3% | -5.2% |
| Upper North Shore | $745,500 | 2.1% | -0.6% |
| West | $544,000 | -1.1% | -6.2% |
There were quarterly gains in the Lower North Shore (+5.4 per cent), the Inner West (3.3 per cent) and the City and East (2.7 per cent).
The Central Coast unit market continued to decline, with a further 3.1 per cent decline taking its year on year median down 13.4 per cent.
