Over the past 25 years, the Sydney Property Market has changed significantly. Not only in increased property values, but population growth and mortgage rates have also played a part.
Housing prices over the past 25 years
Over the past 25 years, the median house value nationally has risen by 412%, or $459,900.
For Sydney:
House values over the past 25 years
Unit values over the past 25 years
Housing prices 25 years from now
If property prices were to rise at the same rate as the past twenty five years, Australia's median house value would reach $2.9 million by 2043.
While it's hard to fathom, if we saw the same rate of capital gains as what was recorded over the past twenty five years, Sydney's median house value would be $6.35 million in 2043 and the typical unit would be worth $3.47 million.
Obviously these simple extrapolations don't take into account how economic and demographic conditions might play out over the next twenty five years or how housing demand and supply may evolve; so there is a real possibility that housing trends and growth rates could look remarkably different to what we've seen over the past twenty five years.
Extrapolated median house values by 2043
Extrapolated median unit values by 2043
The proportion of household income required to afford a typical mortgage has risen over the long term, but has improved with lower mortgage rates.
The rise of housing as the preferred investment assest.
Investment in the housing market has trended higher over the past 25 years, rising from approximately 20% of mortgage demand in 1993 to an historic high of 55% in May 2015.
Higher densities and smaller lot sizes.
Over the past 25 years, more buyers are choosing to purchase a unit over a detached house in Sydney because of the cheaper price points and often more strategic location.
Key vacant land statistics for Sydney:
Overall, the housing and mortgages sector has changed dramatically over the past quarter of a century. Considering the pace of change and advances in technology, the next twenty five years are likely to show an even larger contrast with the trends of today.
Top 20 suburbs for Sydney
*Source: The Aussie/Core Logic 25 years of Housing Trends
Should you wish to discuss the market in further detail, please contact our team directly on (+61)2 9960 1066 or enquiries@pkproperty.com.au.