Sydney's Inner West property market has remained quite competitive with some record breaking sales seen over the last 12 months. Although the median house price has declined by 9.5%, the median unit price has increased by 0.30%.
A new suburb record was set by 18 Harney St, Marrickville only 4 months ago, selling for $4.28mil which smashed the $3.5mil reserve.
The Inner West's median house price currently sits at $2.14mil compared to the record high of $2.40mil in December 2021, a decline of 10.8% in a little over 12 months.
The median unit price currently sits at $875,190 from an all-time high of $881,740 back in July 2022, a drop of only 0.70%, however the median unit price is still sitting higher than prices from 12 months ago, showing its resilience.
We saw some buyers being priced out of houses, townhouses and villas within the Inner West market over recent years, due to the boom and as a result, many of these buyers turned to apartments.
Whilst competition remains strong for houses, there are still some good buying opportunities around, given that the median house value has dropped by around $250,000.
Top 5 best performing suburbs in the last 12 months (houses - median price):
Balmain East -1.93%
Dulwich Hill -4.24%
Summer Hill -4.65%
Birchgrove -5.78%
Petersham -6.17%
Top 5 best performing suburbs in the last 12 months (units - median price):
Enmore +2.79%
Rozelle +2.51%
Marrickville +2.21%
Lilyfield +1.81%
Balmain East +1.65%
Top 5 worst performing suburbs in the last 12 months (houses - median price):
Ashfield -12.41%
Croydon -12.21%
Lewisham -11.24%
Enmore -10.97%
Leichhardt -10.78%
Top 5 worst performing suburbs in the last 12 months (units - median price):
Dulwich Hill -2.60%
Ashfield -1.56%
Croydon -1.02%
Leichhardt -0.87%
Camperdown -0.38%
There is some good news for investors, who either own property in the Inner West or are looking to buy a blue-chip investment property.
The median house rent is now sitting at $900 per week (+4.04% in the last 12 months) and units at $582 per week (+7.14% in the last 12 months) - resulting in a rental yield increase of 14.95% on houses and 6.81% on units since Marc 2022. With property prices softening but rental returns increasing, this is providing investors with higher yields than they've seen in previous years.
As we begin to see international students return to Australia, along with migration and expats coming home, this is putting pressure on people looking for a rental property, so it's not such good news for renters. The vacancy rate currently sits at 0.88% (March 2023), meaning there is little supply but plenty of demand.
Sydney's Inner West market has always performed well due to its close proximity to Sydney CBD, beaches and the domestic and international airport - all within 10km - 15km. And let's not forget all the trendy cafes and restaurants around here. It's become a very popular area for young professionals, families and students.
Whenever buying real estate, it's important to look at the long-term performance. The Inner West median house price has grown by 105% and units by 65% in a short 10-years, confirming that holding long-term provides a solid return on your investment.
Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.
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