As the Sydney housing market cools, some suburbs are still seeing growth – albeit at 20% as compared to the 50% during pandemic. Image:; Canva.
  • Frenchs Forest saw an almost 20% price growth
  • Many top suburbs saw growth close to 20%
  • Pales in comparison to pandemic growth of almost 50%

The housing downturn seems well underway, The Property Tribune reported in August that dwelling values across Australia fell by -1.3% in July, the third consecutive negative month, according to recently released CoreLogic data.

Five of the eight capital cities recorded a month-on-month decline in July, with Sydney (-2.2%) and Melbourne (-1.5%) leading the way. Brisbane recorded a 0.8% decline – the first time its entered such territory since August 2020 – with Canberra (-1.1%) and Hobart (-1.5%) also down.

Darwin (0.5%), Adelaide (0.4%) and Perth (0.2%) bucked the trend, although growth has slowed down significantly since the first interest rate hike in May.

As spring rolls around, The Property Tribune also reported the seasons expected to be a little different, with some noting sellers should be more realistic with price expectations.

Sydney’s Top 5 for price growth

While the harbour city saw prices drop by over 2% in July, some suburbs are bucking the trend.

Shore Financial’s State of Sydney Report found the top five suburbs for each quintile (as defined by current median asking prices) for price growth, with the quintiles being Working Class Sydney, Suburban Sydney, Rising Sydney, Professional Sydney, and Elite Sydney.

Top 5 working class suburbs in Sydney

Rank Suburb Postcode Median price for Aug 2022 Growth in median price for year to Aug 2022
1 Oakhurst 2761 $840,000 20.0%
2 Prestons 2170 $990,000 20.0%
3 Liverpool 2170 $960,000 20.0%
4 Minto 2566 $862,000 19.7%
5 St Helens Park 2560 $778,000 19.7%

Top 5 suburbs for Suburban Sydney

Rank Suburb Postcode Median price for Aug 2022 Growth in median price for year to Aug 2022
1 Fairfield West 2165 $965,000 19.1%
2 North Rocks 2151 $1,760,000 18.9%
3 Guildford West 2161 $950,000 18.8%
4 Chester Hill 2162 $1,050,000 18.5%
5 Condell Park 2200 $1,250,000 17.9%

Top 5 Rising Sydney suburbs

Rank Suburb Postcode Median price for Aug 2022 Growth in median price for year to Aug 2022
1 Kirrawee 2232 $1,565,000 19.5%
2 Bangor 2234 $1,500,000 18.8%
3 Erskineville 2043 $1,780,000 18.7%
4 Forest Lodge 2037 $2,100,000 17.3%
5 Penshurst 2222 $1,700,000 17.2%

Top 5 Professional Sydney suburbs

Rank Suburb Postcode Median price for Aug 2022 Growth in median price for year to Aug 2022
1 Elanora Heights 2101 $2,600,000 18.2%
2 Marrickville 2204 $1,920,000 18.1%
3 North Epping 2121 $2,135,000 18.0%
4 Dulwich Hill 2203 $2,075,000 17.9%
5 Avalon Beach 2107 $2,850,000 17.5%

Top 5 Elite Sydney suburbs

Rank Suburb Postcode Median price for Aug 2022 Growth in median price for year to Aug 2022
1 Frenchs Forest 2086 $2,205,000 19.2%
2 Lindfield 2070 $3,600,000 18.8%
3 Paddington 2021 $3,150,000 18.0%
4 Concord 2137 $2,900,000 17.2%
5 Lane Cove 2066 $2,700,000 16.9%

The report considered over 600 Sydney suburbs, with the list finding some suburbs finding some Sydney suburbs enjoyed double-digit price growth despite the market headwinds.

Working Class Sydney and Suburban Sydney (quintiles one and two) suburbs tended to be in the outer ring of suburbs, while the remainder tended to be in the middle and inner rings.

The top-ranked quintile one suburb was Oakhurst, enjoying 20% growth in median house prices.

Suburban Sydney’s Fairfield West lead the way with 19.1%, and Rising Sydney’s Kirrawee saw 19.5% median house price growth.

The top Professional Sydney suburbs was Elanora heights, seeing 18.2% growth in median house prices, with Elite Sydney standout performer Frenchs Forest seeing a 19.2% growth.

Shore Financial CEO Theo Chambers said the Sydney property market has significantly changed since the analysis was completed in March.

“Back then, the average annual price growth for the standout suburbs was an astonishing 49.2%; now it is 18.6% for the suburbs in our report. That shows you that the market has significantly cooled,” said Mr Chambers.

“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.

“If you’re a buyer, conditions are more favourable than earlier in the year. But if you are waiting for prices to return to pre-pandemic levels, I would suggest that is wishful thinking. My guess is this correction will end well before we get to that point, and that another growth cycle will then begin,” concluded Mr Chambers.

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