Sydney's sub-$500,000 affordable home market opens up for Sydney buyers: PRD research

EXPERT OBSERVATION

For the first time since 2016 the first and lowest price band of $0-$500,000 has opened to Sydney buyers, at 1.4% of the market, as shown in the latest 2018 Affordability and Livability Report released by PRD nationwide.

Although this is a very marginal part of the market, this marks a more affordable Sydney.

For the first time since 2015 all the affordable and liveable suburbs in Sydney had negative annual median price growth, a sign of market cooling.

Prior to this, affordable and liveable suburbs showcased positive growth, thus, in the Livability and Affordability report it became a task of nominating suburbs with as moderate a softening as possible.

In Brisbane, all affordable and liveable suburbs were in the north.

This was different to previous reports, where affordable and liveable house hotspots were found in all pockets of Brisbane (i.e. north, south, east, etc.).

None of the affordable suburbs in Hobart were able to satisfy the liveability criteria.

To ensure liveability aspects were met, the median suburb price had to be raised above that of the Hobart metro median price.

This only occurred in Hobart, which suggests the strong need to develop a strategy that addresses liveability aspects in more affordable areas of Hobart.

Of all the capital cities, Melbourne has proven to be the most resilient market, both in terms of price growth (in comparison to Sydney) and in ease of satisfying liveability aspects in its more affordable suburbs.

Dr Diaswati (Asti) Mardiasmo
National Research Manager | PRDnationwide | Colliers International