2017 saw the Sydney property market reach new heights in terms of capital growth, competition and jaw dropping prices. 2017 also saw the highest volume of properties for sale in Sydney since 2012, with a massive 20% more properties on the market than 12 months prior.
So, where were the Sydney hot spots and which suburbs cashed in on capital growth in 2017?
Highest median value - houses
Darling Point, Sydney NSW $5,682,520
Highest median value – units
Dawes Point, Sydney NSW $3,176,621
Lowest median value – houses
Spencer, Gosford NSW $378,778
Lowest median value – units
Vineyard, Sydney NSW $189,066
Lowest median value within 10km from a capital city - houses
Sydenham, Sydney NSW $1,215,465
Lowest median value within 10km from a capital city – units
Belmore, Sydney NSW $506,675
Sydney’s amazing capital growth
Sydney has really driven capital growth over the last 12 months and it’s not surprising that North Shore suburbs got a mention. McMahons Point, Sydney saw a 45% increase in median house value in 2017 and St Leonards experienced the largest 5 year change with a whopping 207% increase for houses.
St Leonards certainly benefited from the announcement of the new Crows Nest railway station, due for completion in 2024, which will provide direct and fast services to Martin Place, Barangaroo, North Sydney, Chatswood and Macquarie Park.
Buying in Sydney
2017 showed us all that buying within 10km of Sydney’s CBD became unaffordable for most, prompting a social media public shaming of avocados. Apparently, you can’t have avocado on toast and own a property in Sydney. But for those who ditched their avocado eating ways and snapped up a property with a quick commute to the city, Sydenham in Marrickville Council area was the lowest recorded median house value at $1,215,465.
Tempe, Arncliffe, and Turrella closely followed with median house prices below $1.3M.
Units were much more affordable in 2017, although you would have to venture to suburbs in the Canterbury and Blacktown Council areas. Belmore came in with the lowest median unit value at $506,675.
Investing in Sydney
Well, investors didn’t fair that well in Sydney in 2017, however the top 10 suburbs with the highest gross rental yields all came from the Central Coast, in fact all from the Wyong Council area.
Mannering Park recorded the highest gross housing rental yield at 4.7% and a median house value of $488,117.
For those who did invest within 10kms of Sydney CBD, Waterloo was the top performer with a gross house rental yield of 3.4%. With yields that low, it’s safe to say there will be a lot of unhappy Sydney investors should negative gearing be abolished.
Securing finance to buy in Sydney
The lending environment over the last 12 months has certainly had an impact on Sydney’s property market. Throughout the year, credit limits were placed on investors and interest-only lending was restricted from March 2017. Investors have been a key driver of Sydney home loans and lending policy has changed from week to week to align with government regulations. As mortgage brokers, it has certainly kept us busy.
The outlook for lending is positive. Some second-tier lenders are now targeting investors with lower interest rates, as the big banks continue to reduce their investor portfolio. And if you’re comfortable with a P&I repayment for your primary residence, then you my friend, are flavour of the month!
Finance approval is always about positioning yourself in the most favourable way to show the lender you are a low risk applicant. That’s what we do – so give us a call to discuss your financial needs.