Sydneysiders are paying a pretty penny for big homes near parks and beaches as home owners place more value on property than ever before, sending house prices into the stratosphere.
The rush comes after a widespread shift to spending more time at home over the past 18 months and is tipped to continue as lockdown limits residents to their local areas.
Sydney broke a new record with the median house price hitting $1,410,133, growing 24 per cent – or $272,887 – in the past year to June 2021, the latest Domain House Price Report revealed.
That figure is dwarfed by the growth in lifestyle locations, which are major drawcards for well-heeled buyers who can't spend cash on overseas travel and can borrow at ultra-low interest rates.
Many are doubling down on buying the best property, so it is akin to being on holiday even during a lockdown.
The prime example is the northern beaches, where the median house price grew to $2.6 million, soaring 38.7 per cent in the past year – the largest growth for any region in Sydney.
It was followed by the Baulkham Hills and Hawkesbury region, where big blocks accommodate even bigger homes. The median house price climbed to $1.62 million, increasing 32.8 per cent.
With the city plunged deeper into lockdown this week, the latest COVID-19 outbreak has highlighted the value of being stuck in big, comfortable homes with a study and nearby beaches or parks.
“There are only a few things that people can focus on at the moment. One is being in lockdown, another one is their home, and the other one is their geography,” said Michael Clarke, principal of Clarke & Humel.
“Eighteen months ago, a study wouldn't necessarily add any value, whereas now it's one of the first and most important items on the agenda,” he said.
“And you'd better love that five-kilometre radius that you bought within because otherwise, it would be a sobering existence.”
Sheer buyer demand from across the board, whether they are first-home buyers, upgraders or downsizers, is driving up prices, said Mr Clarke.
While many are from out-of-area, trading up cramped inner-city terraces for bigger houses, there are also many locals who are also upgrading, downsizing or even “right-sizing” like Fairlight resident Peter Harvey who just bought in Manly to be closer to the beach.
“Before COVID, I was thinking of moving a bit closer to Mosman and Neutral Bay. Then COVID came along, and it's really changed the work-life dynamic,” said Mr Harvey, adding the commute into the city was no longer an issue for him.
“You do put a higher premium on where you live because, in the next couple of years, we're not going to have that option [of international travel].
“So, you're prepared to spend a little more to have that lifestyle, a better lifestyle.”
Home owners are listing their properties years earlier than expected, becoming more confident as the market rises.
“The market shot up so much, instead of retiring in two or three years now they said 'bugger it, we'll retire now',” said Morgan Fahey of McGrath Manly.
But the number of homes on the market remained low in the face of demand, which continued to buoy prices too, he said.
“We've seen a huge emergence of your inner-city buyers even in places like Paddo [Paddington], where $3 million doesn't get you anything anymore, but you can almost get into a free-standing house here.”
Even a first-home buyer looking to buy a two-bedroom apartment a year ago has been priced out but “every second buyer” is backed by the Bank of Mum and Dad and leading negotiations, said Mr Fahey.
Even in the leafy region of North Sydney and Hornsby, the median house prices shot up 29.7 per cent to $2.75 million thanks to fierce competition from buyers looking to secure decent-sized homes in a neighbourhood with plenty of amenities.
As a result, comparable houses were selling $1 million more compared to last year, said James Yahl, director of Marshall Chan Yahl.
“The home has never been more important because we've got to spend so much time there,” Mr Yahl said. “Good-sized blocks of land, good-sized houses, good shopping centres – the lifestyle is a drawcard.
***Source: Domain - Tawar Razaghi