The Sydney suburbs where property prices have fallen have been revealed
Tim Lawless, CoreLogic’s research director, said many of these ZIP codes quickly entered and dropped out of the club during the pandemic real estate boom.
“As we see property values going down, it’s suburbs that were the first to be pushed into the club and would also be the first to fall out,” Lawless said.
“For those who missed the boat in the previous cycle, price points have absolutely gone down,” he said, adding that many suburbs still had higher home values than they did before the pandemic.
Meanwhile, the same trend was playing out at higher price points in ZIP codes falling out of the $2 million home price club.
A number of Northern Beaches suburbs fell out of the $1 million club for units and $2 million for homes after the region posted one of its steepest growth numbers during the pandemic boom.
Cunningham chief executive John Cunningham said it was natural for the region’s property market to self-correct and provide more opportunities for budget buyers.
“It had the strongest growth in Sydney and possibly NSW over the period 2020 and 2021. It had an average price growth of 40 per cent,” Cunningham said.
“Then you have a correction of 20 percent plus. You have a far greater impact when you go up and a far greater impact when you go down.”
For Northern Beaches resident Simon Frauenfelder, the downturn meant his family could move from a townhouse in Brookvale to a home in Cromer — a suburb that fell out of the $2 million club after its median value plummeted was down about $487,000, or 20.3 percent, from its January 2022 peak to February 2023.
“We bought Cromer for $2.04 million. That was a huge saving compared to two years ago,” said Frauenfelder. “There are some really good opportunities out there and there aren’t a lot of people.”
Neither property he sold nor bought had enough interest to be auctioned, which he says was the reason he was able to upgrade at a “good price” in the same market. He bought and sold through Matt Nicastri of Cunninghams.
Property values in dozens of western Sydney suburbs also fell out of the $1 million club, allowing many to buy below the citywide median home value of $1,006,923, down 13 in the year to February, according to CoreLogic data .4 percent declined.
Blaze Real Estate director Blaz Dejanovic said many of those ZIP codes just joined the club during the pandemic housing boom.
“We barely cracked the million dollar marketplace initially, it backed off a bit. But to say we’re still seeing some strong results,” Dejanovic said.
“There are definitely a lot more homes we’re still selling under the $1 million mark when there wasn’t anything we were selling under a million dollars back at the height of the COVID boom.”
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https://www.smh.com.au/property/news/the-sydney-suburbs-that-fell-out-of-the-million-dollar-club-20230307-p5cq5g.html?ref=rss&utm_medium=rss&utm_source=rss_property The Sydney suburbs where property prices have fallen have been revealed