Australians looking for a property bargain are more likely to find one in suburbs near the city that are full of high-rise apartments, with the number of sellers outstripping willing buyers.
Record high property prices have seen younger people locked out of the market, with prices in May surging to record highs in 66 of Australia’s 88 sub markets based on council areas.
Sydney’s median house price since January has surged by more than 15 per cent to a record $1,186,518, putting a home with a backyard beyond the reach of a single person earning an average, full-time salary of $89,000.
But even within Australia’s most expensive city, there are suburbs where bargains are possible.
Australians are more likely to find a bargain in suburbs near the city that are full of high-rise apartments. Macquarie Park (pictured), in Sydney’s north, suffered a 5.5 per cent fall in values in the year to May 2021 as Australia’s border closure affected international student enrolments at Macquarie University
Real estate data group CoreLogic’s head of research in Australia Eliza Owen said buyers had more choice in postcodes where listings exceeded sales volumes.
‘Many of the suburbs featured are characterised by inner-city or high-density urban locations, where housing demand has been softer through COVID 19,’ she said.
Across Australia, 33 suburbs had above-average listings and price increases that failed to keep pace with the broader market.
During the past year, three metropolitan suburbs have suffered a decline in property values as buyers overwhelmingly preferred houses to apartments.
‘This may in part be due to a preference for detached housing stock,’ Ms Owen said.
In some cases, prices fell despite being close to trains and a major shopping mall.
Macquarie Park, in Sydney’s north, suffered a 5.5 per cent fall in values in the year to May 2021 as Australia’s border closure affected international student enrolments at Macquarie University.
One-bedroom units there are selling for $540,000 with lots of choice on the market.
Australia’s worst-performing metropolitan suburb is only 2km from Australia’s best-performing suburb, South Turramurra.
This Upper North Shore bushland area, with no apartments, saw its median house price climb by 22.8 per cent in just three months to more than $2.1million.
Inner-city Melbourne was also home to poorly performing suburbs with median property prices falling by 3.2 per cent in Hawthorn in the east
Inner-city Melbourne was also home to poorly performing suburbs with median property prices falling by 3.2 per cent in Hawthorn in the east.
The upmarket area 9km from the city has a two-bedroom student accommodation unit available for $240,000.
In nearby Port Melbourne, prices fell by 0.3 per cent with a new one-bedroom unit near the water available for $440,000.
Sydney has been a strong performing market with house and unit values together climbing by 11.2 per cent as house values surged by 14.8 per cent.
In nearby Port Melbourne (pictured), prices fell by 0.3 per cent with many good deals on offer for buyers
But in some pockets close to the city, growth was well below average with Rockdale in the inner south recording an increase of just 3.6 per cent while Westmead in the western suburbs had a rise of just 2.5 per cent.
The story was similar in Brisbane where property prices during the past year have climbed 10.6 per cent as house values went up by 11.9 per cent.
But in the Fortitude Valley, just 2km from the city centre, prices went up by just 0.3 per cent even though the suburb is home to nightclubs and restaurants.
A two-bedroom unit on a main road is available for $350,000.
The story was similar in Brisbane where property prices during the past year have climbed 10.6 per cent as house values went up by 11.9 per cent. But in the Fortitude Valley, just 2km from the city centre, prices went up by just 0.3 per cent even though the suburb is home to nightclubs and restaurants