Unit Surge Powers Sydney Market

Hotspotting

The rise and rise of the unit market is keeping the Greater Sydney market busy, although below the exceptional levels seen in some of the other market jurisdictions across Australia.

Unit markets are considerably more positive than house markets in our most expensive capital city and the market share of attached dwellings continues to rise.

In our latest analysis, well over half of all residential sales across Greater Sydney are attached dwellings.

In most of the Greater Sydney municipalities where sales activity is strong, it’s the unit markets that are most active. Outer ring house markets are generally subdued, suggesting that those seeking affordable options are choosing apartments and townhouses.

The dominance of attached dwellings in Sydney market performance can be seen in various metrics, resulting from our most recent analysis of activity.

While 45% of locations with house markets have positive rankings in our latest analysis, 67% of unit markets are positive. This includes 24% of house locations classified as rising markets, in contrast to 37% of unit locations.

This coincides with further evidence that a growing share of dwelling sales in the Greater Sydney market are attached dwellings.

Comparing the June Quarter results for the past four years, the market-share of units was 48% in 2021, 50% in 2022, 52% in 2023 and 54% in 2024.

So the latest quarter has shown a resurgence in sales activity in Sydney, inspired by rising demand for attached dwellings.

In the City of Sydney LGA, two-thirds of suburbs have positive ratings, headed by the unit markets in Sydney CBD, Surry Hills, Waterloo, Chippendale, Darlinghurst, Elizabeth Bay and Redfern – all rising markets.

In the Canterbury-Bankstown LGA, which has recorded a steady rise in sales volumes over the past 18 months, 60% of locations have positive ratings, most of them unit markets. Those with rising sales activity include the unit markets in Bankstown, Belmore, Canterbury, Campsie, Lakemba and Wiley Park.

The City of Parramatta fits this pattern also. Two-thirds of markets have positive ratings and 10 of the 13 ranked as rising are unit markets – headed by North Parramatta, Sydney Olympic Park, Toongabbie and Westmead.

Top end municipalities that continue to pump strongly include the Woollahra LGA, where there have been steady increases in quarterly sales over the past 18 months. The apartment markets in Double Bay, Vaucluse and Edgecliff are all rising, while those in Rose Bay, Woollahra and Paddington have consistent buyer demand.

The City of Randwick is also very consistent with its sales levels, boosted by rising activity in the unit markets of Kensington and Matraville, the house market in Randwick, and both houses and units in Maroubra. In the City of Waverley, another place with steady quarter-by-quarter sales, the leading locations with rising sales are the unit markets in Bondi, North Bondi, Bondi Junction and Waverley.

In the outer-ring areas, the City of Penrith at the western fringe of Greater Sydney has recorded a recent upsurge in market activity and six out of ten markets have positive rankings. Rising locations include the house markets in Jamisontown, Kingswood, Penrith, St Marys and Werrington, as well as the unit markets in Colyton, Kingswood and St Clair.

But the City of Liverpool is where house markets are doing best, amid a recent upturn in sales volumes – led by Green Valley, Moorebank, Prestons and Wattle Grove. The unit market in the central suburb of Liverpool is also notably strong.