Yahoo Finance $27,440 per sqm: Grim reality of Aussie property market ‘squeeze’
Sydney’s Paddington is the most expensive suburb in Australia, with houses costing $27,440 per sqm.
Australian properties have shrunk in size, but the price per square metre of land has continued to skyrocket - soaring above $20,000 in some suburbs.
House and unit property prices per square metre (sqm) have been trending upwards in the capital cities, driven by higher prices and smaller land sizes, Domain’s latest Price Square Metre Report found.
Unsurprisingly, Sydney is the most expensive capital city, with houses costing a whopping $2,590 per sqm. However, this skyrockets 10-fold in the city’s most expensive suburbs, with houses in Paddington costing $27,440 per sqm and those in Darlinghurst reaching $25,065 per sqm.
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In Melbourne, house prices have hit $1,838 per sqm while, in Canberra, prices have gone back slightly to $1,485 per sqm. Perth prices have increased the most among the capitals (up 14 per cent) to $1,410 per sqm, while Brisbane and Adelaide are also up to $1,341 and $1,296, respectively.
Domain’s chief of research and economics, Dr Nicola Powell, said Australia was home to some of the least densely populated cities in the world but still had some of the most expensive property markets.
“Despite this, the desire of people to live in the capital cities has meant that more are trying to squeeze into them and are competing for housing,” Powell said.
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Units have even higher prices per sqm, with Sydney units costing $8,510 per sqm, on average, and Melbourne units sitting at $7,333 per sqm.
Land sizes are shrinking in Australia because of increased urban density. Powell noted this shift was essential for housing affordability for the broader population.
“Without the shift towards greater density and smaller land sizes over the past two decades, house prices would be vastly higher than they are today - higher by 44 per cent in Perth, 16 per cent in Adelaide, and 14 per cent in Melbourne,” Powell said.
Sydney buyers hit the hardest
All of the top 25 most expensive suburbs in Australia by square metre - bar one - were located in Sydney.
A 56-sqm Paddington studio was sold for a whopping $1.39 million - which works out to an eye-watering $24,821 per sqm.
The rare free-standing studio featured a pull-down bed in the middle of the main living area. It last sold for $550,000 in 2003.
Despite the smaller size, real estate agent Ben Collier told Yahoo Finance there was an opportunity to make more of the limited space.
“To make it a one-bedroom, the path of least resistance would be to create a mezzanine level across the kitchen. The ceiling is very high and a mezzanine bedroom would retain the living space,” Collier said.
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