Sydney property market: Four-bedroom house prices rise amid undersupply

Families in Greater Sydney face a significant financial barrier when attempting to upsize their homes. According to Domain’s latest House Price Report, the median price for a four-bedroom house reached $1.55 million in June, creating a $270,000 gap compared to the $1.28 million median for three-bedroom houses.

Despite a broader property downturn, the price of typical four-bedroom homes rose 3.9 percent over the 12 months leading to June, outstripping the 2.8 percent gain seen in three-bedroom homes. Conversely, the median price for two-bedroom houses declined by 1.6 percent to $1.2 million.

Dr. Nicola Powell, Domain’s chief residential economist, attributed the trend to an undersupply of larger homes. She noted that many potential sellers, particularly downsizers, are choosing to hold onto their larger properties and wait for improved market conditions rather than selling in a weaker market. Additionally, the scarcity of large blocks of land contributes to a significant price premium for these family homes.