A one-bedroom apartment in Sydney’s inner-south has recently sold for nearly $1 million after being passed in at auction, highlighting the soaring property prices in the city. The selling agent noted that this sale might indicate a trend for the future.

Located at 29 Lander Street, Darlington, the apartment is part of a small development of just 15 units. Despite its lack of a car park, the 69-square-metre space is larger than the average one-bedroom apartment. The selling agent, Brad Gillespie from The Agency Eastern Suburbs, mentioned that the property was sold to an expatriate for his son, who is studying at nearby Sydney University. The plan is to use it as accommodation and later retain it as an investment property.

Gillespie explained that the property had a price guide of $1 million, reflecting the desirability of the development. It went to auction with a reserve price of $1,030,000 but attracted only one registered bidder, who purchased it for $995,000. Despite the limited interest due to the high price and absence of a car park, Gillespie believes this sale is not an anomaly. He expects to see more one-bedroom apartments reaching the $1 million mark soon.

Home prices across Australia are projected to continue rising, with Domain forecasting new record highs for both houses and units in most capital cities by the end of the financial year. Specifically, Sydney unit prices are expected to increase to between $838,000 and $855,000, a 6 percent rise. House prices are predicted to reach between $1.73 and $1.76 million, an 8 percent increase.

Key drivers behind this price growth include population growth, construction challenges, and increased borrowing power. Australia’s population surged by 650,000 last year due to strong migration, while home building has struggled to keep pace.

Having a car park can significantly enhance a property’s value, as recent sales have demonstrated. For example, a one-car garage in Sydney’s Woollahra sold for $500,000, and a Bondi homeowner was offered $1 million for their lock-up garage earlier this year. Real estate agent Ben Collier from The Agency noted that a parking spot can add a minimum of 10 to 12 percent to a property’s overall value. He explained that for properties worth several million dollars, the value of a car park can be substantial.

This recent sale in Darlington underscores the robust demand for Sydney properties, even as prices continue to climb. With factors like population growth and limited housing supply driving prices upward, Sydney’s real estate market shows no signs of slowing down.