While property prices are falling across most parts of Sydney, a new report has identified a range of suburbs that have outperformed the market over the year to August.
The quarterly Shore Financial State of Sydney Report analyses Sydney’s 600-plus suburbs, and then picks the top five suburbs in each quintile based on changes in their median house price over the previous 12 months.
The quintiles are:
● Quintile 1 = Working Class Sydney
● Quintile 2 = Suburban Sydney
● Quintile 3 = Rising Sydney
● Quintile 4 = Professional Sydney
● Quintile 5 = Elite Sydney
The top-ranked suburb in Working Class Sydney was Oakhurst, where the median house price jumped 20.0% in the year to August.
Suburban Sydney’s leading suburb was Fairfield West, where house prices rose 19.1%.
In the Rising Sydney quintile, Kirrawee led the way with 19.5% house price growth.
The number one suburb in Professional Sydney was Elanora Heights, which enjoyed 18.2% house price growth in the year to August.
Elite Sydney’s standout performer was Frenchs Forest, where the median house price climbed 19.2%.
Shore Financial CEO Theo Chambers said the Sydney property market has significantly changed since this analysis was last done six months ago, in March.
“Back then, the average annual price growth for the standout suburbs was an astonishing 49.2%; now it’s 18.6% for the suburbs in our report. That shows you that the market has significantly cooled.
“At the moment, prices are falling in many Sydney suburbs, but they’re still holding up well in the 25 suburbs in our report. The average inventory level for these suburbs is a low 1.7 months, which tells you that buyers have relatively few properties to choose from. That’s why the average days on market for these suburbs is just 24 days; quality homes are still quite scarce, forcing buyers to compete hard.”
Mr Chambers said the Sydney market is likely to look very different six months from now when the next analysis occurs.
“Prices are likely to continue trending down in most parts of Sydney for a bit longer. It’s hard to say how much longer the downturn will last, but it’s important to remember prices skyrocketed during the boom, which means it’s likely only a share of those gains will be
given back.
“If you’re a buyer, conditions are more favourable than earlier in the year. But if you’re waiting for prices to return to pre-pandemic levels, I’d suggest that’s wishful thinking. My guess is this correction will end well before we get to that point, and that another growth
cycle will then begin.”
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