Sydney’s luxury market is driving a broader market resurgence, as the city experiences its most significant increase in house prices in more than a year.
For the first time since April 2022, national house prices recorded a month-on-month increase, driven by a 1.4 per cent gain in Sydney. North Sydney, in particular, has seen strong activity, according to Chief Economist Nerida Conisbee.
“The depth of the buyer pool for the top-end of the market is a stand-out, while North Sydney and the broader north shore continues to outperform,” Nerida said.
“We’re now consistently seeing house price growth across Sydney, led by the top quartile of the market.”
House price growth is expected to continue thanks to fewer building approvals, returning overseas migration and chronic rental shortages, with Sydney unit rents up 18.1 per cent year-on-year. Sydney’s prime price performance trended above the average global annual growth, as reported in the Knight Frank Prime Global Cities Index.
“For those able to transact in this market, there are strong indicators for further growth in Sydney house prices over the medium- to long-term,” Nerida said.
“Sydney’s prices have jumped 4.1 per cent since December. There’s a dire shortage of stock, while persistent rental shortages will only add further pressure.”
Aqualand has benefitted from the spike in interest in luxury property experiencing over $150 million in sales from its three luxury projects since January 2023.
Aqualand’s $1-billion AURA project clocked over $100 million since January 2023.
Aqualand Head of Sales and Marketing, Alex Adams, said the strong sales is a positive sign for the broader luxury apartment market in Sydney.
“AURA’s performance is a key indicator of this robust market, setting the stage for an exceptional year in luxury residential sales.”
Aqualand’s other two developments, the REVY in Pyrmont has exceeded $20 million in sales over the last three months, while BLUE at Lavender Bay has achieved over $35 million.