How family homes are driving Sydney’s real estate boom

We’ve all read the headlines about the Sydney property market’s phenomenal growth this year.

The question is, what’s driving the market? The answer is family homes.

Why the high demand for family homes?

COVID has changed so much in our lives since it hit our shores in March 2020, including how we live and what we want from our homes.

Given how much time we’ve spent working, learning and relaxing at home over the last two years, it’s no wonder so many buyers are looking to upsize their home. We’re no longer seeing our homes as merely somewhere to eat and sleep in between going to work or school. There’s a renewed focus on our lifestyle and quality of life at home, and buyers want to ensure that everyone in the family has their own space and that there’s room to work and study. Extra bedrooms, additional living spaces, and home offices have moved to the top of many buyers’ lists.

But it’s not all work and no play. Buyers have been prioritising homes with leisure and recreation facilities, too. Large backyards and swimming pools have experienced a surge in popularity. ‘Pool’ was the most searched term for Domain’s listings across all capital cities in October.

Sydney family home market update

What impact has the surge in demand for family homes had on the property market?

According to CoreLogic, the median Sydney dwelling price (that’s houses and units combined) has risen by a stunning 25.23% over the last twelve months. But when the data is separated into house values and unit values, the true story of Sydney’s real estate boom is revealed. Sydney house prices are up a whopping 30.4% since October 2020, while units have only risen by 13.6%. House prices have increased more than three times faster than unit prices in the last year, according to Domain, and it’s partly down to the sheer demand from buyers for more space.

What’s happening in the Upper North Shore family home market?

Data from Domain shows that house prices across more than a third of Sydney suburbs have risen by at least 20% over the last year, with prices jumping by more than $500,000 in 45 suburbs. Median house prices in the area from North Sydney to Hornsby rose by 25.2% over the year to the end of September, while units increased by 10.5%.

Three Upper North Shore suburbs feature in Domain’s top 20 Sydney suburbs with the strongest house price growth. West Pymble comes in at number seven, with a 37.5% year-on-year increase in median house prices leading to a new median of $2,310,000. In 11th place is Gordon, whose median increased by 35.9% over the year to reach $3,132,500. Killara was 13th, with a 35.7% median increase resulting in a new median house price of $4,037,500. That means Killara’s median increased by more than $1 million.

Elsewhere on the Upper North Shore, the median house price as of October is $3,650,000 in Roseville, $2,690,250 in St Ives and $1,620,000 in Hornsby.

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The rapid house price rises mean some would-be house buyers are looking to the apartment market instead. Here on the Upper North Shore, larger apartments are popular with both families and downsizers, and because they’re relatively uncommon, they tend to be snapped up quickly when they come on the market.

What next for the Upper North Shore family home market?

The spacious homes and big blocks of the Upper North Shore are made for the family home trend, and they’re in great demand.

The Upper North Shore ticks the boxes for many upsizers and upgraders looking for a large family home, with plenty of houses boasting four or more bedrooms, swimming pools, excellent schools and ample parks, playing fields, bushland and green spaces. With many people now working from home either permanently or at least a few days a week, commuting is less of a concern for buyers. This means that suburbs further north, like ours, are attracting more interest as buyers prioritise lifestyle over proximity to the city or commercial hubs.

With no signs that the demand for family homes on the Upper North Shore is likely to abate any time soon, now is a great time for both buyers and sellers to get into the market.

If you’re thinking of buying or selling, our expert local team is here to help.

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