According to the latest CoreLogic report, the Sydney housing market appears to be moving in two different ways, with homes growing while units showing decline.
As the overall value of Sydney homes rose 0.4% in January, looking at market segments reveals two different stories.
During the month, house prices hit $ 1.03 million, with increases of 0.7% per month, 2.7% per quarter and 3.1% per year. In contrast, unit values ??in Sydney fell to $ 734,198, down 0.1% per month, 1% per quarter and 0.6% per year.
Tim Lawless, research director at CoreLogic, said homes outperforming units in price growth were the case in recent months.
"Demand for units has declined thanks to COVID-19 amid record levels of investor participation and shifting life preferences. At the same time, supply levels are increasing in some neighborhoods ", he said. "While supply and demand remain imbalanced, we will likely see units continue to underperform the single family home market."
According to data from Realestate.com.au, some areas and suburbs of Sydney have shown significant declines in unit values. For example, the North Ryde units reported a 13.5% drop in values. Significant declines were also recorded in Berala (11.5%), Auburn (10%) and Parramatta (9%).
The divergence between the two market segments was also observed in the rental markets.
During the month, rents in Sydney rose 2.1% for houses, but fell 5.6% for units. It should be noted, however, that on a monthly basis, the city's unit rents increased by 8%, the first increase recorded since March of last year. This indicates that the rate of decline in unit rents is easing.
Another continuing trend during the month was the better performance of regional markets in New South Wales compared to Sydney. Housing values ??in the state's regional markets have grown 9.5% per year, more than the 2% gain reported in Sydney.
"Internal migration data shows more people are moving from Sydney to regional areas, leading to a shift in business from metro areas to peripheral and regional markets," Lawless said.
Top suburbs:
West Wodonga
,
menai
,
south cardiff
,
trott park
,
south of Brisbane
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