Recent Home Living Property Culture The Team
Recent Home Living Property Culture The Team
Property

THE SYDNEY MARKET - 2018 QTR 1

08-Feb-2018
Supplied by Property Analytics


At the beginning of 2017, we reported that Sydney Property Prices were up 15.5% compared to the previous 12 months. This annual rate of price growth was broadly similar to trends in 2013-2016, and we all got used to it. Well, the boom looks to have finally run out of steam, with CoreLogic reporting just 3% growth in 2017, and forecasting flat prices moving into 2018.

The residential real estate market in our area (Ku-ring-gai plus Artarmon, Chatswood, and Willoughby) has changed dramatically over the last 5 years, with house prices nearly doubling, and in some respects, the changes have been driven by unique demographic trends.

Across NSW, 4% of households have annual incomes above $260,000; in our area, it’s 3x higher, at 14%. The proportion of people in NSW with a Bachelor Degree or above is 19%; in our area, it’s 2x higher, at 38%. And, about 40% of households in our area consist of 3-4 persons, compared to 33% NSW-wide. Clearly, we live in a very affluent part of Sydney, with well-educated and highly paid neighbours who are willing and able to compete for large, quality, family homes.

The other dominant demographic feature in our area is the high proportion of residents who were born overseas. In NSW, 30% of people were born overseas – in the Ku-ring-gai area, that’s 45%. Our neighbourhoods have always been recognised across Sydney as some of the best places to live, but in recent years, they’ve become well-known internationally as well. About 16% of us arrived in Australia in the last 12 years, compared to 10% NSW-wide. The appeal has been particularly strong for those of us with Asian Ancestry; in 2006, 16% of residents identified their primary Ancestry as North-East Asian, and in 2016, this proportion increased by two thirds to 26% (NSW average is 8%).

Ku-ring-gai has undoubtedly benefited from the city-wide price boom of the last 4-5 years, but a large portion of growth above and beyond the Sydney average can be attributed to competition between specific buyer types: wealthy, highly educated couples with 1-2 children, often arriving new to Australia from North-East Asia.

Many of us would say that we live in the best area of a world class city, in the luckiest country around. That’s hard to argue against.

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