By James Tong, 24/1/2023
Parramatta lies at the heart of the Sydney metropolitan area. Designated by the government as Sydney’s second CBD in 1968, Parramatta has been the centre of Sydney’s infrastructure for more than 55 years and has been home to up to 85 state government departments, including the Department of Planning, the Department of Education and the Department of Community Services. However, property prices in Parramatta have long lagged behind its ‘second CBD’ status.
Parramatta is an apartment-dominated area, with 80% of homes priced between $400,000 and $600,000, making it ideal for first-time buyers. According to ABS statistics, Parramatta will have a resident population of 30,211 in 2021, of which 4,621 will be Chinese, accounting for 15.3%.
01
Collect data on 1,000 property transactions
1,000 property transactions from 11 September 2020 – 22 December 2022, in chronological order (the 20 highest prices have been excluded)
The chart below shows, in descending order of price, the proportion of each type of property, the distribution of prices, and the ‘ceiling’ of prices for different types of property.
02
Before and after the house price crash
A selection of 312 property transactions before 4 May 2022 from the above data, in descending order of price:
Data for 312 property transactions after 4 May 2022 is shown below:
The two graphs are stacked for comparison:
Moving Picture of Change:
As can be seen in the graph, the main range of house price falls, which occur in the $800,000-$1,450,000 range, can be as high as 15 per cent. While the remaining 80 per cent of transactions have seen only small declines, transactions around $600,000 (the median price in urban areas) may not even feel any change.
03
Changes in capital entering the housing market
Total value of funds transacted for 312 properties entering the market after 4 May 2022: $206.8 million.
Entering the market before 4 May 2022, 312 properties transacted with a total value of funds: $196.1 million.
Decrease in funds entering the market: -5.17%
