Sydney’s median unit price on the rise.
In just four years’ time, Sydney’s median unit price will probably be more than $1 million, according to Domain.
Currently, the median is $812,863. This means it would need to rise by another 23% ($187,137) to surpass the seven-digit mark.
The Sydney unit market has seen annual price growth of at least 20% in the past, and although it is unlikely to see such a figure in the next 12 months, Domain chief of research and economics Dr Nicola Powell said the city was “well on the path” to achieving this milestone by 2028.
“I think it is possible for a couple of reasons. Number one is [that] more of us are living in apartments.”
While some of this trend is driven by affordability, many demographics are choosing to live in apartments.
“Baby Boomers are opting to downsize and move into that lifestyle apartment. But we’ve also got first home buyers, those in their 30s and 40s, and more families living in apartments. It’s a growing trend, Dr Powell said.
With Sydney’s median house price now $1.6 million – double that of the unit median – apartments are a relatively more affordable option for first home buyers.
About the author – Alex Veljancevski is a Sydney mortgage broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.