State of Sydney Report June 2023

With the Sydney property market in a state of flux right now, a select number of suburbs are
forecast to record price growth in the next six months, according to the Shore Financial State
of Sydney Report.

The quarterly Shore Financial State of Sydney Report divides Sydney’s 600-plus suburbs
into five quintiles, based on their current median asking price for houses:

The quintiles are:
● Quintile 1 = Heartland Sydney
● Quintile 2 = Suburban Sydney
● Quintile 3 = Rising Sydney
● Quintile 4 = Professional Sydney
● Quintile 5 = Affluent Sydney

Standout suburbs – Heartland Sydney (quintile 1)

Standout suburbs – Suburban Sydney (quintile 2)

Standout suburbs – Rising Sydney (quintile 3)

Standout suburbs – Professional Sydney (quintile 4)

Standout suburbs – Affluent Sydney (quintile 5)

 

Shore Financial CEO Theo Chambers said the latest Shore Financial State of Sydney Report is very timely, considering there’s so much uncertainty about what will happen to the Sydney property market over the rest of the year.

“Prices are rising again in many suburbs, after falling for most of 2022 and the start of 2023.
However, it’s too early to tell whether this is a dead-cat bounce or the start of another growth
cycle,” he said.

“You could make the argument that this price growth is a false positive because the low level of housing supply is propping up prices. If and when more stock comes onto the market this will have an impact on prices but we don’t know exactly how much. Conversely, you could argue that this demand is very real – due to a surge in migration and people coming to terms with rate rises – and that therefore the Sydney market has turned acorner. In that case, prices might continue rising in the city as a whole.

Focusing on the 25 suburbs in the Shore Financial State of Sydney Report, what stands out is how they’re placed in terms of supply. Inventory levels are low in all these suburbs, which means buyers are being forced to compete hard to secure a property, putting upward pressure on prices.

Furthermore, leading indicators suggest these suburbs have a very low likelihood of a surge in listings in the foreseeable future. They have strong market conditions that are likely to keep upward pressure on prices in the next six months.”