With 2023 slowly closing in on us, it’s time for an Inner West property market check. We discuss median property prices, current rental conditions and why auction is still king. With prices increasing, low supply and rental shortages, it’s an optimal time to sell your Inner West home.
Property prices are rebounding
Entering into 2023, property prices had dropped, due mainly to increasing interest rates. Fortunately, most owners have managed to absorb these rises. Now, with interest rates thankfully stabilising and lower supply, we see Sydney property prices rebounding. Another clear indicator of a relatively strong market is vendor discounting sitting at just -3.8%.
According to CoreLogic’s latest Home Value Index data, Sydney property values have increased 2.5% in the last quarter and 7.3% in the last 12 months. The current median property price is $1,110,660. But let’s take a closer look at the Inner West’s numbers.
Inner West median property prices
Here are the median prices for Inner West property right now:
- Balmain: $2.5 million for houses and $1.395 million for units.
- Balmain East: $3.345 million for houses (larger increase), while the median unit price decreased to $1.2 million from 2021 highs.
- Birchgrove: $2.675 million for houses compared to $1.645 million for units.
- Lilyfield: $2.1 million for houses and $1.1 million for units.
- Rozelle: $2.16 million for houses and $1.45 million for units.
Overall, it’s clear Inner West property prices are above the Sydney average. With average days on the market currently sitting at just over a month, it’s a great time to sell your Inner West home. Now let’s now focus on the best way to sell.
Auctions are in
Sydney has always loved an auction and it’s still the selling method of choice right now. According to Domain’s latest Sydney auction results, the current auction clearance rate is 68%. This is an increase of 8% in 12 months.
The area with the highest regional clearance rate recently though? The Inner West, with a clearance rate of 79.3%. This included 67 auctions with a median price of $1,695,500.
It’s important to note most properties turned in at auction are sold within a week. However, here in Balmain, we’ve sold several homes prior to auction in the last few months. They include this two-bedroom cottage for $2.15 million and this two-bedroom unit for $1.74 million. In a fast-paced market like the Inner West, auction is always the way to go.
There’s still a rental shortage in the Inner West
We’ve observed a shift recently with more owner-occupiers moving into the Inner West as property investors become more cautious. This move, coupled with low rental supply, equals soaring high rental prices.
According to CoreLogic, in the last 12 months, Sydney rental prices have increased by 8.4% for houses and a staggering 14.3% for units. The current rental vacancy rate in the combined capital cities is a mere 1.0%.
In Balmain, you’re looking at a weekly rent of $1,025 for houses and $740 for units. This equals a gross rental yield of 2.4% and 2.97% respectively. Is it time to bite the bullet and sell (or buy)?
Bravery in the Inner West property market will be rewarded
Anyone who’s worked through all the various property cycles believes the time to sell or buy is just as the market is starting to rise once more. With our knowledge of how the market works in the Inner West, we believe that more value is in plain sight.
Can we help with your Inner West home?
Whether you’re ready to sell or need help to rent your investment property, we have the experience and local knowledge to make your property journey easier.
Looking for help selling your home or renting your investment property? Our team at Belle Property Balmain support homeowners across Balmain, Balmain East, Birchgrove, Rozelle and Lilyfield. Feel free to get in touch for a no-obligation discussion or property appraisal.
