After a record-breaking year for real estate in 2021, a comprehensive report has named the top-performing suburbs across the country.
And, Darling Point was among the best.
2021: A year of real estate records
Respected property information, analytics and services provider CoreLogic have compiled their annual Best of the Best report for 2021, a thorough overview of Australia’s best-performing residential property markets.
According to the report, last year saw real estate values across Australia record their largest rise since 1989, lifting by an incredible 22.2%. That puts the estimated value of the nation’s residential property at a new all-time high of $9.4 trillion. Amidst this boom, both Sydney and New South Wales property reached record high values, and, in good news for Darling Point property owners and vendors, results in our suburb were amongst the city’s – and the nation’s – strongest.
How did Darling Point compare?
Darling Point appears four times in the Best of the Best report, garnering two national rankings and two rankings in the Greater Sydney lists. Units and apartments in our suburb have risen in value more than most over the last year, and the median value of units in Darling Point is now one of the highest in the country.
In the top ten capital city suburbs with the highest median unit values in Australia, Darling Point comes in at number three. Our suburb’s median unit value of $2,405,957, calculated from 104 sales over the 12 months to 30 November, puts it behind only Point Piper and Barangaroo for the most expensive units in the nation. Darling Point also ranks third in the top ten Greater Sydney suburbs with the highest median unit values.
When it comes to Greater Sydney suburbs with the highest change in unit values in 2021, Darling Point comes in second with a truly exceptional annual rise of 35.5%. That impressive figure puts our neighbourhood at number five on the national list of suburbs that experienced high unit median price growth last year. To put that remarkable price increase into context, national unit values rose by a much more modest 14.2% over the same period. The only Sydney suburb to experience a greater median unit value increase last year was Point Piper, with a lift of 38.0%.
Why did Darling Point real estate perform so well?
There are several reasons why units and apartments in our suburb, which make up around 87% of the homes here, performed so strongly last year.
Just researching the market?
One of them was our coveted harbourside lifestyle. As lockdowns limited our movements and more of us than ever switched to working from home, buyers sought proximity to fresh air and the beautiful outdoors. In metro markets across the nation, prices for “lifestyle” homes by the water experienced significant growth.
Another factor was the strong performance seen in high-end markets across the country. As the CoreLogic report explains, during an upswing phase in the housing market cycle, like that we experienced in 2021, prestige markets, such as Darling Point, in cities like Sydney and Melbourne tend to see higher growth rates than other market sectors.
The type of buyers active in the market last year also played a part in Darling Point’s strong results. While the average proportion of owner-occupiers in the market over the last decade was 65%, according to ABS housing finance data, last year owner-occupiers made up 72.6% of all property finance secured. Around 62% of Darling Point homes are occupied by owners rather than tenants, which aligns with the type of buyers who were most prevalent in the market last year. We saw a lot of demand from upsizers, and downsizers, both looking for larger properties.
What can we expect in 2022 for Darling Point?
After such a heated year in 2021, many of the major banks are predicting softer, more sustainable growth across the Australian property market this year. This ought to result in a more balanced, even market where buyers will enjoy more choice and vendors (who are usually buying another property too) won’t feel pressured or rushed into decisions.
We predict growth in our suburb will continue into 2022. There is an ongoing local shortage of quality housing stock, and buyers who missed out in last year’s frenzy are still looking to secure a Darling Point home. As our international borders open up and immigration and visitors return, foreign real estate acquisitions are forecast to rise once again.
Are you looking to buy or sell a home in Darling Point this year? Please always feel welcome to contact me.