Sydney Suburbs Hitting $1 Million Median Price Regularly
George Raptis writes a short but educational piece for the website Property Update wherein he writes that the phenomenal capital growth rate of Sydney has catapulted the number of “median apartment price of $1 million” suburbs by a fair amount. In contrast, only one suburb outside Sydney- Melbourne’s Balwyn North- has been able to enter the $1 million bracket.
This says a great deal about the rise of the harbor city
One distinction that can be made between Sydney’s suburbs and Balwyn North is the fact that the former predominantly constitutes of townhouses while the latter chiefly constitutes of apartment units.
What can the trend be put down to?
- The Baby Boomer generation is downsizing now that they are coming into the senior-citizen stage of their lives.
- Investors are seeking to profit from high capital growth and smart rental returns (with low vacancy rates expected).
- Gentrification and demographic trends are pointing towards the rise of the prestige market.
- Younger buyers are coming into the fray in a lot more substantial way.
You can read the original article here.
Construction industry has risen from slumber
Sydney’s construction industry and real estate had hit a really tough patch a few years ago. What Sydney has achieved looks doubly brilliant because its prices have shot up from a plateau/trough area. Sydney has registered fine momentum and has also gotten a second wind after meeting with a good deal of price correction in the interval phase.
In this context, I feel the suburbs hitting the $1 million median price for apartments is only a statistic and it had to arrive sooner or later. The urbanisation trend points strongly to the growth of apartments and it may even be that this relatively new house type snatches the ‘favourite’ tag from detached dwellings in days to come.