House purchases are trending downwards as New South Wales property buyers look to strata, according to the latest property report.
The Property Market Update Q3 2024 report from prop tech firm InfoTrack has examined the property types and locations with the highest volume of sales from 1 July to 30 September this year.
It shows house purchases have dropped – from 60.83% of all New South Wales property sales in Q1, to 58.93% in Q2, and are now sitting at 58.56% in Q3.
In comparison, strata dwellings have been steadily increasing throughout 2024, moving from 31.43% in Q1 to 32.62% in Q2. In Q3, strata accounted for more than a third of sales (33.01%).
InfoTrack’s Head of Property, Australia, Lee Bailie said it points to a wider trend.
“While the increase in unit sales may seem incremental, it shows home buyers are increasingly opting for more affordable housing solutions given current economic conditions,” Mr Bailie said.
The trend also aligns with the increase in medium to high density housing developments which are being purchased off the plan.
“These developments, of which we’ve seen a boom along Sydney’s metro lines, have led to the decrease in single dwelling house purchases and an increase in apartment style living,” Mr Bailie said.
Mr Bailie said houses also had a fall in the First Home Buyer demographic.
“House transactions have had an almost 5% drop among this buying cohort this year, decreasing from 47.14% in Q1 to 43.1% in Q2, now only maintaining 42.91% share in Q3,” he said.
“Comparatively, units had a small uplift among First Home Buyers, from 54% last quarter to 54.39% this quarter.
“The reality, of course, is that there is greater affordability with units and apartments compared with houses, and as property prices rise, this is a trend we expect will continue.”
The InfoTrack figures showed Greater Western Sydney continued to dominate First Home Buyer purchases, but the Central Coast was gaining a foothold.
“The postcode of 2259, which covers 42 suburbs including Tuggerah and Wyong, made the top 10 list of suburbs for sales. It joins 2250 encompassing 34 suburbs including Erina and Gosford, confirming the Central Coast’s property hotspot status,” Mr Bailie said.
The postcode of 2170, encompassing Liverpool, Fairfield, Casula and surrounding suburbs, rose from second place last quarter to first this quarter; while 2560 (Campbelltown, Appin and surrounds) and 2145 (Parramatta, Westmead and surrounds) rounded out the top three.
The full report can be viewed here.
