The Sydney property market has shown remarkable resilience in recent years. Following a historic surge during the 2021 property boom, where median values skyrocketed by +25.3% in just 12 months, Sydney house prices underwent a rapid correction phase, as reported by CoreLogic data. However, 2023 marked an unexpected turnaround, with home values nearing their previous peak levels. As of 2024, the market is experiencing more moderate growth.
The increase in interest rates played a pivotal role in the correction phase, impacting affordability significantly. Both sellers and buyers have proceeded cautiously, awaiting more clarity on future rate adjustments. While concerns over further rate hikes have diminished, the high-rate environment has tempered market activity this year.
Comparing April to the previous year, new property listings in Sydney rose by +10.2%, while total listings decreased slightly by -2.3%. This indicates a return of sellers to the market, with buyer demand effectively absorbing the new supply. Sales volumes surged by +15.5% year-on-year in April, underscoring continued strong buyer interest.
Currently, Sydney’s median days on market (DOM) has stabilized around 32 days for the quarter, slightly up from 31 days in April 2023.
Sydney House Prices
The 2021 property boom propelled Sydney house prices to record highs, peaking in early 2022. Since then, detached housing values saw a significant decline, but the market saw a surprising resurgence with consistent growth throughout 2023. Growth has moderated in 2024.
In April 2024, the median house price in Sydney increased by +0.3%, contributing to a quarterly gain of +1.0%. Annual price changes remain robustly positive at +9.6%.
Sydney’s median unit price also rose by +0.6% in April, reaching just under $845,000. Quarterly growth stands at +1.4%, with an annual increase of +6.2%. Increased demand for units, driven by rising immigration, renewed investor interest, and activity from first-home buyers unable to enter the house market or tight rental market, supported growth throughout 2023 and into the current year.
