Housing prices in some parts of sydney have become cheaper than in 2015, as demand from investors has fallen.
In 2015, like a party, they snapped up buyers of new high-rise apartment buildings in the city`s sprawling urban areas, and now see local apartments priced cheaper than they bought five years ago.
The median price of apartments is lower than it was five years ago cities of North North Ryde, Kens, Forest Lodge (Campsie), Forest Lodge, and the surrounding areas of Balamada (Parramatta), such as North Balamada, Rose Hill (Rosehill) and Granville (Granville).
The median price of apartment units in these urban areas, according to data realestate.com.au by the real estate website, is between 2 and 18 per cent lower than in 2015.
Housing prices in these urban areas have fallen, mainly because of oversupply and weaker demand from buyers, while the COVID-19 epidemic has accelerated the decline in investor activity, which traditionally mainly buys high-rise apartment blocks.
Problems such as dangerous cracks in two high-rise apartment buildings in Olympic Park (Opal Tower) and Mascot Towers in South Sydney have also led to a decline in demand for new high-rise apartment units.
The housing market in other parts of Sydney is different, where low supply and increased demand bring home prices close to the pre-emergency level of New Crown pneumonia.
The median price of Sydney`s independent house fell 0.5 per cent in May, the first decline in the past year but still about 20 per cent higher than in 2015, according to about 20 per cent higher than in 2015.
Realestate.com.au`s chief economic division, connie sbe (Nerida Conisbee), said those seeking to buy homes would be likely to get a good deal if they were now willing to buy residential units in high-rise apartment complexes and rarely face competition from other buyers.
She believes that lower house prices will be temporary. "Lower prices are beginning to attract first-time buyers. Oversupply will eventually be digested and markets will begin to recover ".
The most significant drop in the price of flats is in North Wyatt, where a large number of high-rise apartment buildings have been built in recent years. The average apartment unit price in the city has fallen from 805,000 yuan in 2015 to 735,000 yuan today.
Some people who bought apartments in the district five years ago now have to sell for less than they did.
A one-bedroom garden apartment on Whiteside St Street in the district was sold earlier this year for 615,000 yuan ,$35,000 lower than the 2015 purchase price of 650,000 yuan. Another one-bedroom apartment on Network Pl road also sells for 30,000 yuan less than in 2015.
Apartment prices in Sydney`s Forest Lodge West End are down 16% from five years ago. A typical flat in the district currently costs $837,500, but by 2015 it was 994.5 million. The area`s recent sale of several homes, including some Cullen Closej and Ross St Street homes, fell between $45,000 and $70,000 from the 2015 price.
The city, dominated by high-rise apartment buildings and lacking other types of housing, was the weakest during the new-crown pneumonia epidemic, said Tim Lawless, head of research at CoreLogic.
"Residential units insulated from (falling prices) need to be of scarce value... while apartment units in large buildings have no scarce value. "
The following urban areas have fallen in the last five years:
North Ryde： -18.3%
Forest Lodge：- 15.8%
Rosehill ：-9.9%
Campsie ：-7.2%
Sydney Olympic Park：- 4.8%
Regents Park：- 2.9%
North Parramatta ：-2.8%
Ermington：- 2.8%
Telopea：-2.4%
Granville 2.4%
Parramatta 2.1%
