Real Estate Market Update Postcode 2127
08 Nov 2018
Sydney Olympic Park
1 Sale - Undisclosed
Highest $900,000 - 3 Br Apartment
$705,000 - 2 Br Apartment
Highest - $1,189,000 - 3 Br Apartment
Lowest - $590,000 - 1 Br Apartment
Over-view of the market
Citing tighter credit conditions as a contributor to slower housing activity and lower dwelling values across Australia, CoreLogic head of research Tim Lawless said, “the latest results take the annual decline across the national index to 3.5%, signalling the weakest macro-housing market conditions since February 2012, with our hedonic home value index reporting a 0.5% fall in dwelling values nationally in October.”
Sydney’s upper quartile market where values are down by 8.6%, while Sydney’s lower quartile has recorded a fall that is almost half that of the upper quartile.
The weakest capital city sub-regions are largely confined to the Sydney metropolitan area which comprise eight of the ten weakest capital city sub-markets. Three of Sydney’s sub-regions are now recording double digit annual dwelling value declines
Baulkam Hills & Hawkesbury -10.8%
Inner South Sydney -8.5%
Inner West Sydney -8.0%
North Sydney & Hornsby -7.7%
Gross rental yields are slowly recovering as dwelling values trend lower and rents edge higher. Nationally, gross rental yields are picking up from previous record lows, rising from 3.71% in October last year to reach 3.87% in October 2018. Despite the subtle rise, gross rental yields remain well below their decade average of 4.31%.
A recovery in rental yields back to average levels is likely to take some time, considering national rents have remained relatively flat over the year to date and are only 0.8% higher over the past twelve months.
The downturn in housing market conditions has been relatively mild to date, with the 3.5% fall in dwellings values over the past twelve months coming on the back of a 34% rise in national dwelling values over the growth cycle. With credit availability remaining tight and rising inventory levels, we are expecting there will be further downwards pressure on housing values as we move through spring and into summer and the New Year.
Advertised stock levels are tracking 10.5% higher relative to the same time last year, with total listing numbers almost 20% higher across Sydney
A key driver of lower housing market participation is related to credit availability. Annual growth in housing credit slipped to 5.2% in September; the lowest reading in almost five years. While investment credit growth has been trending lower for several years, credit for owner occupiers has more recently contracted as lenders seek out borrowers with more substantial deposits and lift their serviceability criteria.
Recent data from Standard & Poor’s tracking mortgage arrears showed loans more than 90 days past due were trending higher but continue to track well below 1%. Improving labour market conditions and ongoing low mortgage rates will help to keep arrears rates low.
- Information sourced from Rpdata, Pricefinder and Core-logic Property Pulse, all care is taken to ensure the accuracy of this information provided but no warranties are given, the reader should not rely on information provided as it is of a general nature.
< Back to Blog