“The dynamics of what we consider an elite price for a commuter has completely changed because we’ve seen Sydney’s median price go up to $1.6 million,” Dr Powell said.
Rapidly rising prices mean house hunters with $2 million to spare are increasingly looking for entry-level homes in suburbs such as North Ryde and Ryde, which also topped this price point at last. trimester.
Those looking for a detached home should look to an older, often unrenovated home on a 500 square meter block, said sales agent Michael Dowling of McGrath Ryde. Homes on odd-shaped blocks and major roads were also hitting the $2 million mark, but entry-level homes on larger blocks with development potential now cost $2.4-2.5 millions of dollars.
Buyers were typically young families looking to upgrade a townhouse or apartment, with first-time home buyers now largely restricted to the unit market, Dowling said. While many were locals, there were also more overpriced shoppers from the interior west and north coast for better value.
Prices in both suburbs soared by more than $500,000 last year to medians of $2.2 million in North Ryde and $2,095,000 in Ryde.
Nearby North Epping, with a median of $1.99 million, was approaching the $2 million mark, as were suburbs such as MacMasters Beach on the Central Coast ($1,987,500), Oatley in the south of the city ($1,982,000) and Forest Lodge in the mid-west. ($1,976,500).
In Sutherland County, Woolooware has just entered the club with a median of $2 million, while typical property prices in neighboring southern Caringbah have soared to $2.05 million.
Again, entry-level homes in the suburbs, such as demolished on blocks with development potential, were selling for more than $2 million, according to Ivan Lampret, managing director of Gibson Partners Real Estate. While some homes on smaller blocks were still within reach of those on a $2 million budget, these properties were rare.
“There is still a severe shortage of anything between $1 million and $2 million. [range]; this market continues to grow because of it,” Lampret said.
The sharp price increases had left some home hunters, especially first-time home buyers, shocked at the asking prices now seen for typical homes in the two suburbs – whose median sale prices were below 1.5million dollars in 2019.
“Once they start putting their toes in the water, they’re like ‘oh my god,'” Mr Lampret said.
Meanwhile, the median sale price in neighboring Burraneer rose nearly $900,000 last year, pushing the median price in the Peninsula suburb to more than $3 million.
Birchgrove in the Midwest, North Balgowlah and Avalon Beach on the Northern Beaches and Camerray and Chatswood on the North Shore were also among the suburbs where median home prices topped $3 million last quarter. Meanwhile, Clovelly, North Bondi and Woollahra have joined the ranks of the $4 million club.
Dr Powell said steam was starting to come out of the property market, with higher levels of new listings and a slowdown in demand causing total inventory to pile up which gave buyers more choice. However, she still expects more suburbs to hit a higher price range in the coming months as prices continue to rise each year.
“We’re going to see that weakness first in our high-priced markets. What you see in terms of price growth is that ripple effect, you see premium suburbs are leading in terms of price growth, then they also usually lead the slowdown,” she added.