Sydney Unit Prices Fall in 19 Suburbs: Concord and Kirribilli Lead Declines
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What are the current trends in Sydney's apartment market?
It's the Real Estate Podcast, brought to you by ANZ Home Loans for financial well-beings. It is your real estate breakfast right across Australia, talking all about your property news, funnily enough, and what is likely to affect us in this year. We're streaming from Cairns to the suburb of Willara in Sydney. And good morning to wherever in Australia or internationally you might be listening to us from. It is a Thursday morning. Tell you what, this week is rattled by pretty quickly. February the 12th. Property prices are lifting across most capital cities for this year, driven by stronger borrowing power, lower unemployment and an ongoing housing shortage. Not much news in that, but beneath the national recovery, Canberra does stand out.
It's no longer one market. It's two markets moving at very much different speeds. Let's right now go to Sydney and catch up with Nicola Powell for the first time this year. She is the Chief of Economics and Research at Domain. And first off, Nicola, how was the Christmas break since this is the first time we're talking this year? Did you get some time to switch off from the numbers, the data and the constant forecasting on property and just try and relax?
Look, I absolutely did. I had a detox away from all things to do with real estate and numbers. And I think you could have just found me every day at the beach rock pooling with my two children. So it was spectacular, but certainly ready back on deck and thinking about the real estate year ahead.
Detoxing from the numbers. I like it. That's exactly what we have to do. Now, I mentioned Canberra. A lot of people won't realise this, but you spent over a decade in Canberra, so you know it very intimately. Just want to kick off the Canberra's detached housing market is firmly back in the fast lane. House prices jumped at 3.6% in December quarter. That is lifting the median to 1.14 million. So talk to that and the fact that you were there for such a long period of time.
We've lived there for over a decade and actually only just we sold out of Canberra last year. So it is a market that I know very intimately. I mean, overall, Canberra is a smaller market. And one of the trends for Canberra is that we're seeing the housing demand is recovering much faster than unit demand. And there is this two-speed market across Canberra where we have house prices rising, but unit prices are actually going backwards. But I think particularly for houses, we have seen them grow, as you mentioned, 3.6% over the last quarter of last year. And that's actually the strongest quarterly growth that we've seen for Canberra house prices in more than two years. And importantly, it's consistent growth.
So we've seen house prices in Canberra now rise for three quarters in a row, which is the longest stretch of an increase that we've seen in four years. Because what we've seen in Canberra, Canberra really did struggle to move into an established recovery rate. I think we can call it that it is in a recovery now. And there is only now 2.8% away from achieving a new record high. So this tells us this is consistent growth. It tells us that the market is in a well-established recovery. And given that only $33,000 now separates Canberra from a new record median house price, it does show that that recovery is well underway.
That is the the house market accelerating but Canberra's unit market is stalling. Apartment prices fell 1.3 percent over the quarter making it the only capital city to record a decline and this is where we've got this clear two-speed market going on in Canberra.
It does, and I think that presents opportunities if you are a buyer looking towards the Canberra market. I think what we've seen is unit demand does remain softer, probably a little bit due to affordability sensitivity at that price point, but also choice. We know that Canberra over recent years has seen lots of high-rise developments occur. That in itself can help change a price point, but I think that that supply of apartments and units has really helped to cap demand
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