Sydney house prices saw record gains in 2021 with certain suburbs doubling in value in 12 months, according to new research.
Shore Financial examined Sydney’s best performing suburbs at different price points, ranging from lower priced working class suburbs to the more affluent elite areas and found strong gains across the board.
Blue-chip Bellevue Hill, classified as Elite, saw the most staggering gains, increasing in value by $4,213,637 to effectively double it’s median price to $8,410,000 in 12 months.
Taren Point, the top-ranked suburb in Professional Sydney, saw its median house price jump $969,000 or 73 per cent.
Wamberal, classified as Rising Sydney, enjoyed a $554,000 increase in its median house price over the year, representing a 51 per cent jump.
Lansvale, was the top Suburban Sydney location, the median house price rising 43 per cent or $122,000, while the leading Working Class Sydney suburb was Austral, increasing in value by $360,500 representing a 72 per cent rise.
Shore Financial Chief Executive Officer Theo Chambers said tight supply and strong demand have put huge upward pressure on prices across Sydney.
“The past 12 months have been extraordinary, with prices going through the roof in most Sydney suburbs,” Mr Chambers said.
“That’s reflected in the home loans data we’ve been seeing, with borrowers regularly increasing their loan amounts to keep up with surging prices.
“For most of the suburbs in the report, inventory levels are under two months and days on market are under 30 days.
“In other words, supply is low and demand is high.”
Mr Chambers said Sydney has been in the grips of a seller’s market.
“The numbers might look very different this time next year, because the evidence suggests the Sydney market is softening,” he said.
“But for the past 12 months and also right now, Sydney has been a seller’s market.”
Mr Chambers said there’s still strong competition from buyers in the current market.
“Whether you’re planning to buy in the inner city, the coastal suburbs or the fringes of the city, competition is fierce right now, so you need to be able to move quickly when you spot your dream home,” he said.
“That’s why it’s so important to have a pre-approval in place, because if you ask the vendor for time, they’ll just sell to one of the other buyers that’s ready to do business right away.”