Sydney House Market: Strong Equity Growth and Profitability
- Leading Equity Gains: Sydney continues to stand as Australia’s deepest equity market, delivering the country’s largest financial gains for homeowners. The median profit from a Sydney house resale has reached $739,500, representing a 6.8% annual increase.
- Exceptionally High Profitability: The vast majority of Sydney house resales remain profitable, with 97.6% of transactions generating a profit. This highlights the market’s continued strength and resilience.
- Losses Are Becoming More Significant: Loss-making house resales remain uncommon in Sydney, accounting for only 2.4% of all resales. However, when losses do occur, their financial impact has increased substantially. The median loss has risen to $70,000, representing a significant 70.0% annual increase in the size of the loss.
- National Benchmark: While Sydney continues to lead Australia in the absolute dollar value of house resale gains, Perth (99.6%) and Brisbane (99.5%) currently record the nation’s highest house profitability rates.
Sydney Unit Market: Higher Risk but Stronger Than Southern Markets
- Higher Rate of Unit Losses: Sydney’s unit market carries greater risk than its house market, with 12.0% of unit resales selling for less than their original purchase price. This points to a more concentrated risk for apartment owners compared with freestanding house owners.
- Performing Better Than Key Southern Markets: Despite Sydney’s 12.0% unit loss rate, its performance remains considerably stronger than Melbourne, where 27.0% of unit resales recorded a loss—the highest rate nationally. Canberra also experienced a comparatively high unit loss rate of 17.2%.
- Largest Losses Occurring Elsewhere: Although some markets experience higher frequencies of loss, the most substantial financial losses on units are being recorded outside Sydney. Adelaide recorded the highest median unit loss at $254,000, followed by Brisbane at $210,000 and Perth at $126,000.