The Sutherland Shire property market has performed much the same as the rest of Sydney, taking a small dip from the record median property prices we saw over the last few years, however it's not all bad news.
Sutherland Shire's median house price currently sits at $1.87mil compared to the record high of $2.10mil in December 2021, a drop of 10.9% in a little over 12 months. The median unit price currently sits at $1.23mil from an all-time high of $1.28mil in June 2022, a drop of only 3.75% in the last 9 months.
Given that most suburbs are so tightly held across the Sutherland Shire, this has helped support property prices, avoiding the large price drops we've seen in other markets across Australia.
During the 'booming' market, many home buyers gave up on searching for their dream home until recently. Home buyers may now find some great opportunities within their budget and with slightly less competition (on some homes), as long as their borrowing capacity hasn't drastically reduced with the rising interest rates.
Top 5 best performing suburbs in the last 12 months (houses - median price):
Dolans Bay +9.50%
Taren Point +0.79%
Kangaroo Point -1.12%
Barden Ridge -2.24%
Port Hacking -3.96%
Top 5 best performing suburbs in the last 12 months (units - median price):
Kirrawee -0.01%
Woolooware -0.61%
Sutherland -1.15%
Sylvania -1.80%
Sylvania Waters -2.60%
Top 5 worst performing suburbs in the last 12 months (houses - median price):
Woolooware -16.28%
Miranda -15.09%
Kirrawee -14.99%
Gymea -14.55%
Yarrawarrah -13.62%
Top 5 worst performing suburbs in the last 12 months (units - median price):
Gymea -9.13%
Engadine -7.54%
Caringbah -7.12%
Menai -6.61%
Heathcote -5.47%
There's also some good news for investors with rental returns still climbing at record levels. The median house rent is now sitting at $741 per week (+5.56% in the last 12 months) and units at $582 per week (+8.18% in the last 12 months) - this is the highest median rent prices historically in the Sutherland Shire. With property prices softening but rental returns increasing, this is providing investors with higher yields than they've seen in previous years.
Not such good news if you're looking to rent in the Sutherland Shire though, as competition is still fierce for rentals, given the low vacancy rates (1.25% on average across all suburbs in the Shire).
The Sutherland Shire is surrounded by stunning beaches and beautiful national parks, so we're not going to see any new estates or large greenfield developments happening around here. This is going to further tighten the supply of properties in the area, whilst demand remains high, as many young people leaving home are keen to remain in the area, close to their family and friends.
For the majority of home buyers across the Sutherland Shire, they should still feel confident that they've made a sound financial decision buying in this area, as the average annual growth rate is currently sitting at 7.3% based on a 10-year hold, with the average hold period of 12.1 years across the Shire.
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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