Data published by CoreLogic shows that amid downturn throughout Sydney, waterfront suburbs have seen a particularly dramatic plunge in home prices – in a shift that can be largely attributed to banks’ increasingly stringent lending criteria.
Over the past year, some of Sydney’s waterfront suburbs have seen a drop of more than $200,000 in median home prices, far more severe than the $50,000 drop seen throughout Sydney as a whole.
Among the most severely affected are beach-side suburb Hunters Hill, which saw its median apartment price slump by $276,150, and tourist precinct the Rocks, which saw median home prices plunge by $390,000 – each area seeing roughly a fifth of value lost, 15 to 20% reductions pervasive in Sydney’s shore-front locations.
Nerida Conisbee, chief economist of ‘Realestate.com.au’, attributes this downturn to the increasingly stringent lending criteria of banks, prospective buyers unable to attain the funds to buy in these costly areas.
Consequently, a changing of the guard can be seen as Sydney’s western suburbs fare best amid city-wide downturn. Where eastern suburbs drop by over 20%, on the other side of the city, median home prices in suburbs such as Auburn increase by 10%, Camden by 15%.
Pervasive in Sydney, however, is an overall downturn in price, and it is precisely this downturn which is projected to create a boom in Spring – even with this drop, first-home buyers are unlikely to be buying in these affluent shore-front suburbs, which are likely to suffer further plunges.