Look what’s happening in our capital city property markets – Sydney & Melbourne

This is the first in a series about the current state of play in each of our eight capital cities.  Today we feature Sydney and Melbourne’s property markets.

We will cover the other states in future blogs over the next few weeks.

Sydney

Just under 4.7 million people live in Sydney.

Its population is projected to grow by about 60,000 new residents each year over the next decade.  The city holds 1.72 million private dwellings, of which three out of five (61%) are detached, with a further 25% being apartments and one in eight being semi-detached in nature.

The median house price is just under $650,000.  Attached dwellings average about $515,000.  House prices are rising at present, albeit slowly, at about 1% per annum.  Apartment values are showing more grunt with rises closer to 1.5% per annum.  New property prices are rising even faster still, up 3.6% on this time last year.

There are just over 9,000 properties for rent across the city, which equates to a 1.7% vacancy rate.  Average gross rental yields range from 4.2% to 4.9% respectively for detached houses and attached product.  Close to 90% of Sydney’s renters pay less than 30% of their income on rent.

One-third of the city rents their accommodation, whilst another 30% own their homes outright and 35% have a mortgage.

There are 2.7 people on average per dwelling.  One quarter of the city’s residents live alone.  Another 25% live as couples without children at home.  Just under half of Sydney’s homes have children living in them.  Two-thirds of the city’s dwellings have three or more bedrooms.

The time it takes to sell a property in Sydney has remained fairly steady over the previous quarter, currently averaging 92 days.  Most established homes are being discounted to help make a sale, but the average private treaty discount rate is about 6%.  At present there are just 19,000 houses and 11,000 attached dwellings for sale across Sydney, which is 13% less than late 2011- a good sign for things to come.

And on that note, Sydney’s dwellings prices are expected to increase by between 5% and 6% per annum over the next three years.

And did you know that 60% of Sydneysiders were born in Australia and that 20% of the city’s workers travel to work by public transport.  Close to 45,000 established houses sold and settled in Sydney over the past twelve months.

Melbourne

Just over 4.1 million people live in Melbourne.

Its population is projected to grow by about 65,000 new residents each year over the next decade.  The city holds 1.63 million private dwellings, of which five out of seven (72%) are detached, with a further 15% being apartments and one in nine being semi-detached in nature.

The median house price is just under $600,000.  Attached dwellings average about $460,000.  House prices are falling at present, at about 4% per annum.  Apartment values are holding up better than house prices, but still falling to the tune of 2.5% per annum.  New property prices are also falling, down 2% on this time last year.

There are just close to 12,000 properties for rent across the city which equates to a 2.8% vacancy rate.  Average gross rental yields range from 3.6% to 4.3% respectively for detached houses and attached product.  Just over 90% of Melbourne’s renters pay less than 30% of their income on rent.

Just under 30% of the city rents their accommodation, whilst one-third own their homes outright and 37% have a mortgage.

There are 2.6 people on average per dwelling.  Almost one quarter of the city’s residents live alone.  Just over 25% live as couples without children at home.  Just under half of Melbourne’s homes have children living in them.  Three-quarters of the city’s dwellings have three or more bedrooms.

The time it takes to sell a property in Melbourne has remained steady, currently averaging 95 days.  Most established homes are being discounted to help make a sale, but the average private treaty discount rate is about 7%.  At present there are just over 40,000 houses and 11,000 attached dwellings for sale across Melbourne, which is 3% more than late 2011.

And on that note, Melbourne’s dwellings prices are expected to increase by between 1% and 2% per annum over the next three years.

And did you know that 63% of Melburnians were born in Australia and that 14% of the city’s workers travel to work by public transport.  Just over 46,000 established houses sold and settled in Melbourne over the past twelve months.

Data sources:  ABS 6416.0 & ABS 3101.0; 2011 Census; BIS Shrapnel; Australian Property Monitors; RPData-Rismark & SQM Research.

You can listen to me on Kevin Turner’s Real Estate Talk and his real estate show between 8am and 9am most Saturday mornings on 4BC1116.

Michael Matusik is the director of independent property advisory Matusik Property Insights and writes the  Matusik Missive which is free, however, reprinting, republication or distribution of any portion of this material, or inclusion on any website, is strictly prohibited without the written permission of Matusik Property Insights and may incur a charge.

 



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Michael is director of independent property advisory Matusik Property Insights. He is independent, perceptive and to the point; has helped over 550 new residential developments come to fruition and writes his insightful Matusik Missive


'Look what’s happening in our capital city property markets – Sydney & Melbourne' have 2 comments

  1. Avatar for Property Update

    January 15, 2013 @ 11:38 am Frank Cooper

    Under the Melbourne information above you write “At present there are just over 40,000 houses and 11,000 attached dwellings for sale across Sydney, which is 3% more than late 2011”. I assume where the word Sydney appears you meant Melbourne??

    Reply

    • Avatar for Property Update

      January 15, 2013 @ 7:54 pm Michael Yardney

      Thanks Frank – you’re paying attention!
      I’ve corrected it for Michael M

      Reply


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