Property market check-in: Aussies are searching for granny flats and gardens, shows new report

Aerial shot of Sydney with harbour views and waterfront property going up in value

The pandemic’s influence on the property market is being felt in more ways than one, shows a new report from Domain on the NSW housing market.

The New South Wales Spotlight Report shows that Australia’s most expensive state is finally on the downturn for property prices after a long upswing. 

Aussies are also changing their housing habits after experiencing the realities of lockdown, prioritising outdoor spaces and coastal suburbs. Top ten search terms including “pool”, “balcony”, and  “garden” across Sydney and Regional NSW demonstrate the desire not to get stuck inside again.

What are people looking for in their property?

Findings show some differences between property searches in Sydney and in wider NSW. Number one in both is the classic search term “pool”, popular in rural and urban areas alike. Other search terms in the top ten for both Regional NSW and Sydney include “granny flat”, “waterfront”, “view” and “new”.

The desire for extra space is clear. While Sydneysiders are more likely to search for properties with the search terms “balcony”, “garden” and “courtyard”, Regional NSW has seen the demand for prime locations with key terms like “river”, “beach” and “water view” all adding to the top ten. The rising work from home trend has also played into the property market, with “study” being the number two search term for Sydney properties in 2022.

Aerial shot of coastal NSW houses with record prices and high value ocean views

What has changed in the NSW property market?

Though changes to property prices have been seen all over the country throughout the pandemic, NSW has seen some true extremes. The three suburbs that have experienced the greatest growth in prices are all NSW hotspots - units in Byron Bay have increased in price by 104.3%, units in Jindabyne have increased by 77.2%, and houses in Mollymook have raised in price by 62.4%. 

While there has been a downturn, it is minor compared to the amount of growth prices have experienced. Take the median Sydney house price dropping by $315,000 - after having gained $927,000 in 12 months leading up to the peak. 

It is, however, a small amount of relief. The amount of time a property will spend on the market also appears to be slowing down (with the exception of units in Sydney, which remain the same). Sydney houses are spending an average of 8 days longer on the market, with regional NSW houses also averaging an extra day for sale.

NSW has been largely affected by the changing migration patterns throughout COVID-19. With more people leaving Australia than arriving for the first time since 1946, Sydney has been disproportionately impacted. Demand in regional NSW and interstate continues to be fuelled by a desire to work from home or break from an urban lifestyle, while a lack of international immigration affords more room in the property market.

With that said, it’s easy to see the difference between the property market of today and two years ago. At current, 62% of Sydney houses and 16% of Regional NSW houses have a median price over $1 million, up from 44% and 1% five years ago, respectively. 91% of suburbs saw house prices grow more annually than incomes, and that figure is 33% for unit prices.

Meanwhile, NSW has rolled out changes to tax options for first time buyers, wherein land tax can be opted into over stamp duty. This could come at a welcome time, as the Domain report notes the changes to the state’s stamp duty: “Since 2002 Sydney house prices have risen 280% while the cost of stamp duty has escalated 406%.”

Due to the nature of NSW as Australia’s largest state economy, there are points of difference to other property and rental markets across the country, and we can gain important insight by making some simple comparisons.

All up, the NSW market may be shifting, but it seems to be a gentle turn - not a dramatic downward swing.

Looking to save on your home loan? Our home loan switch & save calculator is a great resource. Check out our picks for Australia’s best home loans or read our guide to buying your first home.

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Last updated 6 November 2024 Important disclosures and comparison rate warning*

Home loan comparisons on Mozo

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    Initial monthly repayment
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    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

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    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Fixed Express Home Loan

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    5.54 % p.a.
    Fixed 2 years
    Comparison rate
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    Initial monthly repayment
    $2,852
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    Lock in a low 2 year fixed rate with the Mozo award winning Home Lender of the Year. Available for live-in borrowers with just a 10% deposit required. Free extra repayments (up to 20% in fixed period), free redraw and partial offset available. $10 monthly service fee. Aussie support centre. Fast approvals. Up to 6 free offset accounts (T&Cs apply).

  • Fixed Rate Home Loan

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    Get repayment certainty with HSBC’s low 2 Year Fixed Rate Home Loan. Make up to $10,000 of extra repayments a year. The option to split your home loan between fixed and variable. Plus, score $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 28 February 2023 and settle by 30 April 2023.

  • Basic Home Loan

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    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

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    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Fixed Home Loan

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    6.28 % p.a.
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    $2,899
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  • Fixed Home Loan

    • Owner Occupier
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    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate

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    • <80% LVR
    Interest rate
    5.74 % p.a.
    Fixed 3 years
    Comparison rate
    6.81 % p.a.
    Initial monthly repayment
    $2,915

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

  • Unloan Variable

    • Owner Occupier
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    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
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    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

  • Discounted Home Value Loan

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    5.99 % p.a.
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    Initial monthly repayment
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  • Budget Home Loan

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    • Owner Occupier
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    Variable
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    6.07 % p.a.
    Initial monthly repayment
    $3,011
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  • Express Home Loan

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  • Basic Home Loan

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  • Mortgage Simplifier

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    • Owner Occupier
    • Principal & Interest
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    6.14 % p.a.
    Variable
    Comparison rate
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    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
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    Initial monthly repayment
    $3,043
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  • Elevate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
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    6.18 % p.a.
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    Initial monthly repayment
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    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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