Properties along Sydney’s Metro line carry some of the city’s highest price tags, but growth in values has failed to keep pace with the wider market, a new report has found.
Analysis by property research firm Cotality shows that while homes within one kilometre of Phase 2 Metro stations – between Chatswood and Sydenham – are selling at substantial premiums, their growth in the year since the line opened has been relatively weak.
Houses in Phase 2’s primary catchment rose 2.3 per cent in the past 12 months and 10.9 per cent over two years, compared with a 2.9 per cent annual increase and 9.6 per cent two-year rise across Greater Sydney.
Median house values in the Phase 2 secondary catchment sit at $3.62 million, more than double the citywide median of $1.52 million.
Cotality Research Director Tim Lawless said the figures highlight a paradox.
“Buyers are clearly prepared to pay a premium for Metro access, but the very high prices in these catchments appear to be limiting further growth at a time of reduced borrowing capacity,” he said.
Units fall behind
The report shows unit markets faring worse than houses. Unit values fell 2.0 per cent in Phase 2’s primary catchment and 1.7 per cent in the secondary catchment over the past year, while Greater Sydney units were flat.
Over two years, Phase 1’s primary unit catchment dropped 4.9 per cent, with Phase 2 flat at 0.0 per cent, against a 3.7 per cent rise across the city.
Cotality pointed to the dominance of high-density housing in Metro areas as a factor, with units making up 89 per cent of stock in Phase 2’s primary catchment.
Suburbs in decline
Several Metro-linked suburbs have recorded falls in house values despite the infrastructure investment. Chatswood declined 2.3 per cent over the past year, while Cherrybrook was down 1.2 per cent.
By contrast, stronger gains were seen in Sydney’s west and south-west, where homes are more affordable.
Rent premiums soar
Rents near Metro stations remain significantly higher than the citywide average. House rents in Phase 2’s secondary catchment average $1,493 a week, almost 80 per cent above the Sydney median of $833.
Across all dwellings, rents are between 21 and 47 per cent higher than the city average, with the sharpest increases for units near Phase 2 stations, up 5.0 per cent in the past year and 9.7 per cent over two years.
Cotality’s analysis suggests that while Metro access continues to underpin demand and drive rental premiums, affordability pressures and elevated starting prices are constraining capital growth compared with Sydney’s more affordable regions.
