Sydney Inner West - Autumn 2024 Property Update

Apr 23, 2024

Australian home values have risen for a 14th consecutive month and have defied expectations of a slower rise as demand continues to outstrip supply despite the ongoing cost-of-living pressures and high interest rates. Though it appeared to be plateauing late last year, with the ongoing imbalance between housing supply and demand, and despite three rate hikes, worsening affordability, and the rising cost of living, values keep pushing higher. The average price of a property within Australia sat at $765k this quarter, an all-time high of $63k and nearly 9% above the same period 12 months ago.

Increases were not confined to specific areas, and were found to be the case in almost 90% of markets across the country. Keeping in mind the increasing housing affordability issues, it is makes sense that demand has skewed towards the middle to lower end of the value spectrum. Looking at Sydney in particular, growth was up by 0.3%, with the median predicted to soar close to $2 million as anticipated interest rate cuts and a sustained housing shortage kickstart the next growth spurt.

The federal government’s goal of getting 1.2 million well-located homes built nationally in five years starts on July 1, though there is yet to be a meaningful increase in building approvals to start reaching that target. Some 12.85k homes were approved for construction in January, well below the 20k average monthly run rate of approvals to reach that goal. Without a catchup in supply, the Australian housing market is likely to be navigating an undersupply for a few years to come.

There were signs of strength and resilience, though this has been a tumultuous time , as Adrian Tsvalas from Adrian William Real Estate shared, ‘It felt like the market wobbled in October and November with the buyer pool not being able to adequately absorb the increased stock levels of the Spring rush. Though it seems as if buyer confidence is returning as the year progresses”. Nevertheless, for now the market remains lacking in stock while climbing steadily in price. Gautier Lam from Hudson McHugh added, “Generally speaking, in the Inner West there are no ‘bargains’, but there is definitely evidence of properties that sold earlier in the year that have already experienced growth since, due to other high performing sales in the area. Stock levels for sought-after properties continued to remain very low, so demand for those went through the roof the last few months”.

  • Lower Inner West
  • Bayside
  • The Peninsula
  • City Fringe
Lower Inner West

Balanced market

With prices in line with, if not higher than, 2021, buyers still carried the hesitancy of last year’s complex market. Still, the first quarter in Lower Inner West was balanced, as Gautier Lam from Hudson McHugh said, “It wasn’t leaning heavily towards one side or the other as sought-after properties had lots of competition so it was good for the sellers but for not-so-hot properties with less competition, it was a lot easier to secure a deal”.

Michael Tringali, from McGrath Estate Agents, observed a slower start to the year compared to the previous quarter, with a marked improvement mid- February into March. In his experience, this quarter saw premium streets in Haberfield, in walking distance to shops and transport amenities, faring the best. Matthew Lovicu from Hudson McHugh added his take, “We saw downsizers, especially 3/4 bedders between $2- 3m, doing well. But, more surprisingly, the unit market shot up, a segment that hasn’t seen an increase here since 2021”. As is the norm, premium properties in quality locations and in great condition performed well above expectations and reserves. With numerous 2 bedroom sales in Ashfield exceeding $1m, targeting first home buyers and downsizers looking for a unit/semi/townhouse, the knock on effect was that the general property prices in the area for other ‘not so great’ properties also lifted. Stock levels were slightly lower than anticipated, but for the most part everything on market sold.

Holding a prized top floor position, the beautifully presented, east-facing, modern apartment at 54/106 Elizabeth Street in Ashfield, set a building record. Beating the previous in building record only set in February, this 99sqm 2 bed 2 bath 1 car property sold at a $67k increase for $907k.

Snatched off the market after only one open house, a 2 bed 1 bath 1 parking space brick cottage at 20 Hubert Street in Leichhardt sold for $1.75m. On 186sqm with a newly renovated kitchen, this home was previously purchased by the vendor in 2022 for $1.5m.

The perfect entertainer with a two level design and indoor-outdoor entertaining, 4/188 Elswick Street in Leichhardt sits quietly in The Elswick – a boutique security development of just 10. At auction this 2 bed 2 bath property attracted a lot of interest, going under the hammer for $1.78m.

An ultra-contemporary multi-level townhouse in Ashfield, 10/3 Ormond Street has 3 bedrooms, 3 bathrooms, and a 2 car garage. This high end residency reached a suburb record for townhouses in Ashfield, even in comparison to 4 bedders, selling for $1.96m.

In Leichhardt, a three-bedroom, two-bathroom Federation classic at 119 Moore Street not only fetched a reserve-smashing $2.33 million, but made its vendors an almost $1 million profit. Alex Mastoris, of Cobden Hayson, said, “Despite the home being originally marketed with a price guide of $1.8 million, sheer buyer interest allowed them to raise the guide just days out from the event with feedback indicating the home would fetch $2.1 million”.

Nestled within a premier tree lined street, a classic brick federation home at 13 Empire Street in Haberfield previously sold in 2021 for $3.1m. With 4 bed 2 bath 2 car garage on a generous 696sqm block, this spacious home reached almost $300k over reserve, selling for $3.42m.

Beautifully presented inside and out, the renovated family residence at 37 Barton Avenue in Haberfield embraces a fusion of character charm and modern style. This 3 bed 2 bath 2 car garage premier property sold for $900k over reserve, at $4.35m.


Balanced market

The Bay Area had a positive quarter, as Alex Cummins from Dib Chidiac said, “Overall, everything we took to auction sold above reserve, and many properties sold prior to auction. This may have been due to low stock and the many buyers who missed out on properties last year were bidding more aggressively in order to not miss out again. FOMO may be creeping back in, due to interest rate holds and the fear of potentially being priced out of the market”.

Development sites in the core area of Canada Bay exceeded a lot of expectations, with multiple sites surpassing reserves and setting new parameters for similar future listings. Value could be found in older properties on a good parcel of land that were immediately liveable but would require renovation in the not too distant future. Most buyers steer away from these properties, and fail to see the gains they can offer.

Luxury, quality and convenience in the heart of Chiswick, this modern oversized townhouse-style terrace at 1/1 Shore Road sold for $1.365m. This exceptional 2 bed 2 bath 2 car garage turn-key property with street access attracted multiple offers and a big price, the owner looking to upsize while the buyer downsized.

An absolute showstopper, 509/28 Peninsula Drive is located in a high top floor position in Breakfast Point’s prestige Sirius complex. Spaciously proportioned on 361sqm, with panoramas over the water to the city, it is a little wonder this 3 bed 2 bath 2 car garage property garnered a suburb record with the sale price of $4.45m.

Brand new Concord luxury, 151 Burwood Road is a family home crafted with uncompromising quality and elegance. On a massive 626sqm block, this 5 bed 5 bath 2 car garage sold for $5.9m.

The Peninsula


The Peninsula experienced mixed results this first quarter, depending on the sector, market, and calibre of the property. The properties that were available sold well, but as Brandon Nguyen from Bresic Whitney said, it was a small buyer pool, “Sentiment feels positive, stock levels are the lowest they have been. We have 58 listings for Balmain, Rozelle, Lilyfield at the time of writing this email. Usually this would be 100+ throughout the year”. Matt Hayson, from Cobden Hayson, added, “Buyers acted with confidence and intent if a property was “A Grade”(Premium location, turnkey ready, nicely renovated, nice outlook/view). We saw some very competitive auctions over the last few weeks with results similar to that of a heated market. However, we found buyers were also cautious if a property wasn’t perfect or was in a compromised location, they were more likely to pause and make offers with caution in the fear they may overpay. With more supply coming to market there is less fear of missing out and buyers will just wait for new opportunities to come to market”.
There was a marked uplift in interest for townhouses, with the majority of foot traffic coming from downsizers. Opportunities to buy well could be found in homes requiring a little more attention. With building costs coming down and builders now more accessible, these homes are starting to gain traction. If you can secure a home that in undercapitalised there is opportunity to add value. The issue of agents over guiding and having to pull the price back, being penalized heavily in the process, seems to be across the board in the Inner West this quarter.

Enviably positioned on the tranquil shores of Cameron’s Cove, 14/1-13 Grafton Street in Balmain is a northeast facing 2 bedroom home. Located within a stunning architecturally designed building, it cleverly uses its coveted water-side position to maximize outlooks over Sydney Harbour and Barangaroo. Exceeding the price guide of $2m, it reached $2.285m.

A renovated character terrace in a classic row on one of Balmain’s most sought after streets, 15 Harris Street is the most expensive 2 bedder ever sold in this suburb. With a guide of $1.9m, it sold for $2.435m.

Part of a tightly held collection of five private homes, 10 Lawson Street in Balmain, a 3 bed 2 bath 2 car garage property on 238sqm, sold for $2.875m.

Just one street back from the waterfront, with breathtaking views over the harbour, properties such as this home at 19 Wells Street in Balmain rarely trade. The first time ever offered to the market for sale, this 3 bed 2 bath 2 car garage stunner spread over three levels, sold at auction for $3.635m.
A timeless beauty with one of Birchgrove’s most commanding vantage points, this manor-like Victorian residence at 26 Gipps Street stands proud on a rare double block of 346sqm. This 4 bed 3 bath 1 car garage piece of grandeur has the dual perspective out over Cockatoo Island to the north, and over the iconic city skyline from the upper levels. It sold for $7.5m.

City Fringe

Balanced Market/Seller’s Market

The City Fringe kicked off as a balanced market, however shifted to a more seller biased market by close of quarter. Michael White from Adrian William Real Estate broke it down, “The market was strong in both A & B grade with higher overall clearances, the last fortnight in March to Easter resulted in the greatest buyer urgency seen this year. This is in contrast to last year, where A was great, B overlooked and very price sensitive, and C did not sell”.

Downsizers were very aggressive this quarter in their hunt for high quality apartments, and upsizing families showed strong competition for larger homes. Adrian Tsvalas from Adrian William Real Estate noted, “Homes that re-sold after being held for only 1-3 years traded for good value, as buyers overthought the values in the current market and kept the price guides in-line with their previous sale prices instead of resetting at the current level of competing homes”.

Apartments of 2 bedroom or greater, with large floor space, were in demand. As was homes with parking or true rear lane, with these properties attracting twice the interest. Renovators also seem to have made a return to the market this quarter.

An exclusive riverside retreat ideal for the entertainer, the illustrious apartment at 1/37 Riverside Crescent in Marrickville, is among just six residences within the boutique complex “The Riverside Apartments”. With a land size of 162sqm, this 2 bed 2 bath 1 car garage home sold for $1.505m.

A character filled 2 bed 1 bath 207sqm house at 45 Ashmore St in Erskinville sold for $2.25m.

Spanning over two lavish levels, this 3 bed 3 bath stylish duplex at 208A Wilson Street in Newtown is perfectly designed for the outdoor entertainer. With a flawless flow-through design on 116sqm, an outdoor kitchen perfectly oriented to capture the northern sun, and close location to parks, Carriageworks, and the station, this property sold for $2.28m.

Cherished by the same family for over six decades, a late federation home set into a cul-de-sac at 17 Porter Avenue in Marrickville seamlessly blends indoor/outdoor living to perfectly suited to family living. A 3 bed 1 bath 1 car garage on 411sqm in a park side location, this beautifully renovated bungalow sold for $2.8m.

The Inner West – Looking ahead to Winter 2024

With the second quarter already filled with multiple interruptions (school holidays, public holidays), the news filled to the brim with a sad state of affairs is raising the question, how will this impact the overall market sentiment? Potentially, these flow on effects are already becoming visible and weighing on buyers decisions, with talk of rate cuts being pushed later into the year, if not next. Jack Tinworth from Cobden Hayson elaborated on this, “Zooming in on the local Balmain and Rozelle markets for a one week period, we noted there were 9 scheduled auctions last Saturday with 0 properties sold. This knowledge is met with shock by clients, as most people have a top-level view of the property market and hold the opinion that premium suburbs always do well. But rarely do many get right into the detail”.

“With stock levels very tight over the next 3 months, A grade homes will remain highly sought-after and will trade at a premium, B grade homes will trade fairly. C and D grade properties will remain more difficult unless they are priced to sell”, said Adrian Tsavalas from Adrian William Real Estate. Buyers do seem to be building enthusiasm towards moving forward quickly and decisively for the right property, and premium homes will likely attract growing buyer competition and premium sale prices. With a slow rumbling FOMO, and prices on the up, Gautier Lam from Hudson McHugh adds, “Stock levels seem to be remaining very low for sought-after pockets/properties, so if you have an opportunity to secure something, do so sooner rather than later as it seems like prices are only going to keep rising”.

Jack Tinworth from Cobden Hayson wrote, “The winter months could be quite choppy for sellers but at the same time, very good buying opportunities will open up. This is the key takeaway, while there is so much noise and conjecture in the media, it remains important to get back to the long-term fundamentals of buying a quality property in a growth market. We know loan approvals across the board are rising, so the smart money is already eyeing off opportunities. Our advice is to stay alert and pay close attention to how your desired market is performing”. So, if you are in the market for a property, it may just be time to enlist the support of a buyers agent who can navigate you through the fractious elements, keep you apprised of opportunities on and off market, and help you get the home you desire.

Sydney Inner West Area Specialist
Hamada Alameddine

Get in touch with Hamada to find out more about the Sydney Inner West property market, or make an appointment to discuss your requirements and see how we can help you get into your ideal home sooner.

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