Reports and statistics usually rely on a median house price, but what does that actually mean? A new report in popular Sydney markets dives into what kind of properties you can buy with a median price tag.
While Sydney is often is used as a broad indication of the Australian property market, to say just “Sydney” is broad in of itself, as Sydney holds many different markets within it.
That is why the Herron Todd White Month in Review report for March analysed the major Sydney sub-regions, breaking down what the different kinds of properties could be purchased at for the sub-region’s median price:
The Western Sydney area has markets where property ranges between just under $400,000 to just over $750,000, with a lot of variety on offer.
Blacktown, for instance, has a median price of $695,000 which is down 5 per cent for the year but up 54 per cent for the last five years, and can buy an older three-bedroom properties with 600 square metres and some renovations, with a median rental of $420 per week and an average yield of 3.1 per cent.
Units on the other hand go for $480,000, which is down 6.25 per cent over the last 12 months but is up 42 per cent for the last five years. This can buy a modern unit with two bedrooms and two bathrooms, with a median rent of $400 per week, resulting in a yield of 4.3 per cent.
Oran Park houses, with a median of $758,000, which rent for $520 per week at a yield of 3.6 per cent, usually contain four bedrooms, two bathrooms and a double garage with a total of 450 square metres.
Jumping over to the Northern Beaches sub-region with a median house price of $1.75 million, the suburb of Mona Vale with a median price of $1.7 million has seen a decline of 2.86 per cent for the year, which contains property built between the 1960s and 1990s, with dwellings on the western side of Barrenjoey and Pittwater Road are described by the report as “reasonably well-finished”.
The entry point here is considered to be at least $1.2 million, while beachside property can see prices go for at least $2 million.
Units on the other hand sell for a median of $937,500, a decline of 1.32 per cent for the year, which can typically buy, according to the report, a two bedroom, one bathroom unit on the east side or a modern two bedroom, two bathroom unit in a location considered to be less desirable.
Yields for these property types range from 3.5 to 4 per cent for existing stock to 4 to 4.5 per cent for new stock, the report stated.
Lane Cove, a suburb in the sub-region considered to be well regarded according to the report, has a median house price of $2.125 million, which buyers can typically find a detached house with four or five bedrooms and about 650 square metres of land.
Units are priced at a comparably more affordable $835,000, which can typically buy a modern, 80 square metre unit with two bedrooms and one car space.
Representing the Sutherland Shire in the report was Cronulla, with a median house price of $2.2 million. When looking to the north of the suburb, the median can buy a renovated house, while in the south of the suburb is more likely to purchase unrenovated single-storey houses.
Median priced units, which sell for $882,500, contain a variety of options, which include small and old properties with one bedroom to prestige, ocean view properties.