Sydney Property Value Trends Over the Past Decade

Sydney’s property market has seen significant growth and fluctuation over the past 10 years. While some areas have skyrocketed in value, others have remained relatively stable or even declined. Understanding Sydney property value trends by area can help buyers and investors make informed decisions. We’ve enlisted help from certified Sydney property valuers to gather the most up-to-date information.

Inner City Suburbs See Strong Growth

Suburbs within 5-10km of the CBD like Surry Hills, Redfern, and Waterloo have seen enormous growth in property values over the past decade.

Redfern’s median house price has risen from $750,000 in 2012 to over $1.5 million in 2022 – a 100% increase. Terrace houses that sold for $900,000 in 2013 are now fetching over $1.8 million. This rapid growth has been fuelled by Redfern’s transformation into a trendy inner-city hub, attractivity for young professionals, and its proximity to the Sydney CBD.

Surry Hills has seen similarly dramatic growth, with its median unit price rising from $562,000 in 2012 to $980,000 in 2022. ten tears ago, buyers could still find apartments in Surry Hills for under $400,000. Today most sell for $800,000+.

Overall, most inner city suburbs within 5km of the Sydney CBD have doubled or even tripled in value over the past 10 years. Their popularity among young professionals and ease of commute has driven huge demand.

Middle Ring Suburbs More Stable

Middle ring suburbs 10-20km from the Sydney CBD like Hornsby, Chatswood, and Parramatta have seen steadier, more sustainable growth over the past decade.

Hornsby’s median house price has risen 65% from $740,000 in 2012 to $1.22 million in 2022. Chatswood units have gone from a median of $470,000 in 2013 to $740,000 in 2022 – a 55% increase over a decade.

These middle ring suburbs remain popular with young families looking for more space and access to amenities like schools, parks and transport. However their growth has been more modest compared to inner city postcodes.

Western Sydney Still Affordable

Sydney’s Greater Western suburbs like Blacktown, Mt Druitt and Penrith remain relatively affordable compared to the Inner West and North Shore.

Blacktown’s median house price is currently $900,000 – up 50% from $600,000 in 2012. Units in Mt Druitt can still be purchased for under $400,000. Penrith has seen steady growth from a 2012 median house price of $387,000 to $630,000 in 2022.

While values have risen, these Western Sydney suburbs continue to offer homeowners and investors relative affordability compared to middle and inner city areas. Their transport links and growing amenities make them increasingly attractive.

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Weighing Up the Pros and Cons of Online vs In-Person Valuations

Getting a property valuation is crucial when buying or selling a home. But should you go for the convenience of an online valuation or invest time in an in-person inspection and appraisal? Here we examine the key pros and cons of each approach.

Online Property Valuations

Online valuations use property data and algorithms to estimate a property’s value without visiting the site.

Pros

• Fast and convenient – get an indicative value instantly online
• Low cost – online valuations are usually free or low cost
• Help guide expectations – useful for preliminary price research

Cons

• Less accurate – lacks local on-site inspection of property features
• Automated – lacks human judgement and analysis
• Can’t assess renovations/improvements – relies on basic property data

In-Person Valuations

A qualified local valuer will physically inspect your property and surrounding comparables.

Pros

• Highly accurate valuation – inspects all details of property live
• Local expertise – draws on in-depth area knowledge
• Assesses renovations – factors work/improvements into valuation
• Experienced judgement – sophisticated valuation analysis

Cons

• More time intensive – requires appointment and property visit
• Higher cost – expect to pay $200-$400+ for valuation
• Availability – may need to book well in advance

Which is Best?

For a preliminary estimate, online valuations offer speed and convenience. But for an official valuation when transacting, an in-person inspection delivers greater accuracy, insight and confidence.

While more intensive, a human valuer can best assess the true value of your unique property based on first-hand analysis. This is strongly advised before committing to any final real estate decision.

In summary, online valuation tools serve an early guidance purpose well, but when it comes time to sell or buy, invest in a professional in-person valuation for reliable accuracy.

Melbourne House Price Trends and Forecasts

The Melbourne property market has seen strong growth over the past decade, with house prices more than doubling between 2012 and late 2021. However, the market has cooled slightly in 2022 as rising interest rates and cost-of-living pressures curb buyer demand.

Examining Historical Melbourne House Prices

According to CoreLogic home value data, Melbourne’s median house price has grown from $407,000 in 2012 to a peak of $916,000 in December 2021 – an increase of 125% over the decade.

Over the past 5 years (2017 to 2021), Melbourne house values grew by a robust annual rate of 5.4% per annum. This was largely driven by low interest rates, strong population growth, and undersupply in the market.

Key Drivers of Strong Growth Phase

• Low interest rates – The RBA cut rates to record lows of 0.1% during COVID, improving affordability. This motivated buyers to borrow more.
• Population growth – Melbourne saw rapid population growth pre-COVID, creating housing demand. Net overseas migration added over 110,000 people in 2018/19.
• Undersupply – Dwelling construction couldn’t keep pace with population growth. This mismatch between supply and demand put upwards pressure on prices.

However, these dynamics have shifted in 2022. Interest rates are rising quickly, overseas migration remains low, and affordability is decreasing. This has slowed the housing market.

Forecasting Future Melbourne House Price Changes

The growth phase has ended and forecasts suggest a gradual decline in values over 2023 and 2024. However, the market is expected to stabilise and recover in 2025.

2023 – Prices forecast to fall 6 to 10% as higher rates continue to dampen demand and cost-of-living pressures limit spending power.

2024 – A further 5 to 8% decline possible as economic headwinds remain. Immigration may pick up slightly.

2025 onwards – The market likely to stabilise and record modest growth thanks to improving affordability and more normal economic conditions.

Overall, while Melbourne house prices may correct 10-15% from late 2021 highs, the medium-term outlook remains positive. Population growth will pick up again and drive underlying demand. But growth trends are set to moderate from the strong gains recorded over the past decade.