Sydney buyers hoping to spend less than the city’s median house price will be hard-pressed to find a detached house.
Even terraces or semi-detached homes can be hard to come by without spending more, and buyers who opt to move further out may afford an extra bedroom in a villa in a middle-ring suburb.
Sydney buyers need to spend almost $1.5 million to purchase a typical home after the city’s median house price inched 1.3 per cent higher – or more than $18,000 – to about $1.46 million in the March quarter, on Domain data.
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It marked the end of the steepest downturn in property prices in the harbour city thanks to a severe lack of homes for sale in the face of pent-up demand, which has helped the market defy expectations.
Buyers with such a budget will face steep competition and discover agents are selling properties off market to first home hopefuls who have missed out multiple times elsewhere.
Terrace in Newtown sold for $1,450,000 – see the full listing here
In Newtown, a two-bedroom terrace at 7 Angel Street recently sold off market for $1.45 million, topping the vendor’s 2021 purchase price by $130,000, despite no changes to the property.
Selling agent Luke Grosvenor of BresicWhitney Inner West said he showed more than 20 groups through the Newtown property, most first home buyers who had missed out at auctions.
He said the sub-$1.5 million price range was the strongest-performing market in Sydney at the moment.
“At this price point, it’s certainly a lot easier to facilitate a transaction, the buyer pool is greater, there’s a lot of activity at this level,” Grosvenor said.
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He said many are rushing to purchase before their pre-approvals expire and the previous state government’s property tax – which arms first home buyers with an extra $66,000 in spending power – closes at the end of the financial year.
In other markets, property values have already moved higher than a month ago, and buyers would have to compromise on quality or location to purchase at the same price point, agents report.
A two-bedroom Darlinghurst terrace at 373 South Dowling Street that was in “poor to reasonable condition” was guided at $1.2 million in March. It sold for $1.41 million – $260,000 above the auction reserve – to first home buyers in early April.
Terrace in Darlinghurst sold for $1,410,000 – see the full listing here
Selling agent Angelo Lofitis of Dulwich Hill Real Estate said almost 80 groups inspected the property through the four-week campaign and seven bidders registered on auction day.
“Prices have gone up since. There has been a shift since then. This was in poor to reasonable condition, but just,” Lofitis said. “The [terrace] across the road is completely unlivable for the same sort of money today.”
In Eastlakes a two-bedroom semi at 44 Universal Street, that was guided for $1 million, recently sold for $1.33 million.
The home, which was in reasonable condition, attracted interest from 70 groups and 10 registered buyers on auction day, said NG Farah’s Bill Couldwell.
Semi-detached house in Eastlakes sold for $1,330,000 – see the full listing here
“It went a lot over … the opening bid was $100,000 above reserve. The [buyers] were local unit owners from a neighbouring suburb,” he said.
Buyers could pick up a “real basic semi” for between $1.1 million to $1.3 million, he added.
Buyers who moved further away from the city centre could purchase larger properties, but first home buyers in the areas are likely to still need help from the Bank of Mum and Dad.
A three-bedroom villa on a 162-square-metre block at 4/22-26 Anzac Avenue, Denistone sold for $1,212,000 to a first home buyer whose mum purchased the property on their behalf.
Villa in Denistone sold for $1,212,000 – see the full listing here
Selling agent Cindy Seo of McGrath Epping said five out of the 13 registered buyers bid on the property that was guided at $1.1 million and had a $1.15 million reserve.
Seo said villas were an attractive property type for many and easy to sell in the current market.
Buyers who gave up on their house hunt and prepared to look at apartments instead could purchase much closer to the city for the same budget, and could afford a stylish two-bedroom unit, such as 205/6a Birtley Place, Elizabeth Bay.
The 80-square-metre unit with parking had been extensively renovated and is within walking distance of amenities. It sold for $1.44 million – less than $20,000 shy of the median house price.
Unit in Elizabeth Bay sold for $1,440,000 – see the full listing here
This article was originally published in The Sydney Morning Herald.