Sydney’s ‘Two Speed’ Housing Market Drives Interest in This Suburb

Rowan Ashford

ago 2 hours

The housing market in Sydney is experiencing a distinct two-speed dynamic, impacting potential buyers and their choices. As families seek more affordable options, suburbs like Green Valley, Bringelly, Austral, and Hinchinbrook are gaining attention. These areas offer lower price brackets, making them attainable for first-time buyers and those priced out of upscale neighborhoods.

Sydney’s Two-Speed Housing Market

According to Kate Browne, head of research and insights at CompareClub, the growth in Sydney’s housing market underscores this two-speed phenomenon. “People in the market are doing well, with property values appreciating. Yet, accessing these properties is becoming increasingly challenging,” Browne explained. This trend signals a growing divide in affordability across the city.

Government Support for First-Time Buyers

Government incentives play a crucial role in helping buyers like Bianca Knoechel and Jed Daisley enter the property market. The couple, aged 25 and 30, have shifted their focus from pricier areas such as Strathfield and Burwood to more affordable suburbs like Liverpool and Glenfield.

Knoechel noted, “We’ve been searching for over two years, and recent government schemes have made homeownership more reachable. However, areas closer to the city remain out of our budget.” They plan to utilize the federal government’s Help to Buy Scheme, which allows eligible buyers to secure a shared equity model. This program enables them to contribute as little as 2%, with the government covering up to 30% for existing homes and 40% for new builds.

Challenges in the Property Market

Knoechel and Daisley are hoping to find a two-bedroom apartment priced between $600,000 and $700,000. However, competition is fierce, with property inspections often bustling with potential buyers. “We often find out that a deposit has already been taken just a day after we inspect a property,” Knoechel remarked.

Market Trends and Statistics

Despite the hurdles for first-time buyers, certain affluent areas are witnessing significant unit growth. Suburbs such as Crows Nest, St Ives, and Milsons Point are leading this trend, with the median price for a unit in Milsons Point reaching an impressive $2,218,000.

Ray White chief economist Nerida Conisbee emphasized the impact of affordability constraints across Sydney. “High-priced suburbs often give a false impression that buyers have ample cash. Many still require large mortgages, especially for properties costing $4 million or more,” she stated. Though growth remains robust, Conisbee anticipates a potential slowdown in the market due to uncertainties surrounding interest rates.

Increased interest in suburbs like Green Valley and Bringelly.
Median unit price in Milsons Point: $2,218,000.
Government Help to Buy Scheme enables low down payments for first-time buyers.

The fluctuating landscape of Sydney’s housing market continues to evolve, reflecting both opportunities and challenges for prospective buyers as they navigate affordability amid rising property values.