Why now is the time to grab an apartment for a bargain price – and you don’t have to move out of Sydney
- Sydney apartment prices edged up by just 0.9 per cent during the past year
- This occurred as April house prices surged by 10.4 per cent to new record highs
- Treasury predicted unit demand to fall as working rules changed, border closed
Australians looking for property should avoid rushing in to buy an apartment.
While house prices are at record highs, apartment prices have hardly moved during the past year.
Treasury is expecting demand to fall for high-rise apartments in coming years as Australia’s border remains closed to international students and non-citizens.
In Sydney, homes with a backyard in April surged at an annual pace of 10.4 per cent to a mid-point price of $1.147million.
Australians can take their time looking for an apartment with median prices going up by 0.9 per cent during the past year. Sydney’s gentrified inner-west has some bargains with a two-bedroom unit at Marrickville, 10km from the central business district, is on the market for just $650,000 in an older-style block
But median apartment prices have edged by just 0.9 per cent to $771,859, despite property price records being set in 63 of Australia’s 88 real estate sub markets, CoreLogic data showed.
In some inner-city suburbs, units are available for much less.
Sydney’s gentrified inner-west has some bargains with a two-bedroom unit at Marrickville, 10km from the central business district, is on the market for just $650,000 in an older-style block.
A one-bedroom unit at nearby Lewisham was available from $600,000.
Living in an upmarket suburb is also affordable with a one-bedroom unit at Turramurra on the Upper North Shore selling for between $700,000 and $770,000.
In the Budget papers, Treasury forecast working-from-home arrangements would see a longer-term drop in demand for units, leading to fewer new developments.
A one-bedroom unit at nearby Lewisham was available from $600,000
‘Changing preferences for more outer-city, spacious and detached housing may also limit growth in apartment construction in coming years,’ it said.
‘It is not yet clear what structural changes will result from the pandemic, particularly given the greater propensity to work from home during the pandemic.’
Treasury also expected building activity for both houses and units to be unravelled, with the extended $15,000 HomeBuilder subsidies expiring in April 2023.
‘As the outlook for elevated levels of detached house construction unwinds, slower population growth is also expected to limit demand for higher-density dwellings in coming years, such that the recent strength in housing market activity is not expected to be sustained,’ it said.
Living in an upmarket suburb is also affordable with a one-bedroom unit at Turramurra on the Upper North Shore selling for between $700,000 and $770,000
With Australia’s border set to remain closed until mid-2022, the Treasury Budget papers predicted population growth of just 0.2 per cent during the 2021-22 financial year.
A reopening of the border from June next year would see population growth in 2022-23 edge up to 0.8 per cent – the OECD average before the pandemic.
Net overseas migration was forecast to surge to 235,000 in 2024-25, higher than where it was before the pandemic.