Sydney Median House Price Falls to $1.66m as Western Sydney Housing Pipeline Stalls

Residential property values in Sydney have fallen in recent months, with both SMH.com.au and The Age reporting that the market downturn has broadened and pushed Sydney's median house price down to $1.66m. According to a report from Domain, house prices in Sydney tumbled $82,000 in 90 days, a decline that winds values back two years. That Sydney housing price drop, which was also reported by SMH.com.au, comes amid what Domain described as the steepest quarterly housing decline on record in Australia, with capital cities seeing up to $89,000 wiped off property prices in 3 months. The Times Australia reported that as Australia's housing market turns, falling prices are bringing opportunity, pressure, and difficult choices.

Despite the quarterly drop, high-end listings and higher long-term price expectations remain part of the Sydney market. Australian Property Update reported that $2 million houses are set to become the new norm in Sydney. At the top end of the market, the AFR reported that the Nassif family has listed the biggest mansion in Sydney with a $45m price tag. Housing costs and legislative proposals also remain a focus for tenants, with Real Estate reporting that Sydney renters could have saved $7500 under proposed NSW rent cap legislation.

New housing supply and property development projects across Sydney are experiencing both delivery hurdles and ongoing investment. In Western Sydney, a 109,000-home pipeline has hit a delivery wall, according to The Urban Developer. At the same time, individual residential and accommodation projects are moving forward in Sydney. The Urban Developer reported that EG Funds is targeting a tricky Sydney site with a $138m housing play, while Mingtiandi reported that Wee Hur has lined up a 471-bed student housing project in Sydney after a $1B Greystar sale.

Planning is also advancing for a new waterfront neighbourhood in Sydney. ArchitectureAu reported that the shortlisted teams for Sydney's Bays West International Design Competition have been announced. According to Build Australia, six design teams have been shortlisted for Sydney's new Bays West suburb, and The Architects' Journal reported that UK teams are among those shortlisted for the new Sydney waterfront neighbourhood.