Looking for something to distract you from the deluge of red, white, blue (and orange) infused news this past week? Perhaps a look at the fluctuating values of homes in some of Sydney’s most – and least – affordable locations will momentarily put a pause on the spiral.
As it turns out, sustained high interest rates and reduced borrowing capacity have paved the way for affordable suburbs to, ironically, become significantly less affordable. According to Domain’s latest House Price Report for the September quarter, house prices have risen in Sydney’s most affordable suburbs and taken a tumble in some of its more expensive enclaves over the past 12 months.
As pressure continues to mount on home-buyers unable to borrow enough to afford Sydney’s high-priced houses, many are flocking to ‘outer areas’ offering more bang for their buck as the cash rate lingers at cloud level and Cozzie Livs, well, lives.
Data crowns Gymea as the Sydney suburb to experience the biggest rise in house prices, with the median house price soaring 29% to $1.6 million over the year to September. Although far from cheap, the Sutherland Shire suburb’s median sits just below Sydney’s average house price of $1.65 million.
Trailing closely behind, with an annual increase of 28.9%, is the western Sydney suburb of Cabramatta, where the median has climbed to just under $1million at $980K. Once deemed among Sydney’s most dangerous suburbs, Cabramatta is finally “getting its flowers”, with increased buyer demand for homes within a suburb rich in good food and culture.
Nearby affordable western Sydney suburbs Fairfield, Claremont Meadows, Rosemeadow and Wentworthville – all with a median house price of $1.22 million or less – also saw increases upwards of 20%. Meanwhile, halfway between Sydney and Newcastle, the small central coast town of Ourimbah jumped 22.4% over the year to September, now carrying a median price tag of $900K.
Another area increasing in value is the inner west suburb of Glebe, the only $2 million club member occupying a spot on the list. Up 22.3% to a median of $2,690,000, demand in this blue chip location is so strong that in June, a tiny 101 square metre worker’s cottage without a functional kitchen sold for $1.71 million.
Speak To An Expert
Schedule in a time to discuss your situation with a home loan specialist
Meanwhile, in the quant Blue Mountains suburb of Leura, house prices increased 21.2% in the past year to a median of $1.2 million. Buyer demand has risen by over 4% here in the last year, with the region enjoying continued interest since its tree-change-inspired-popularity-spike during Covid. The same can’t be said for neighbouring suburb Blackheath, however, which has seen a 3.6% decrease in house values.
Where else has seen a decline in value? Somewhat unexpectedly, the exclusive Eastern Suburbs have taken a significant hit over the last year. Vaucluse has seen the biggest decline, down 12.8% to a still far-from-affordable median of $7.5 million, whilst Woollahra has suffered a 4.1% decrease to arrive at a median price of $4,075,000.
Surry Hills, long considered the epicentre of all things on-trend, also saw prices dip by 8.2%, with the median decreasing to $2.1 million after hitting a high of around $2.3 million in October last year.
And finally, further south, God seems to be slacking when it comes to upkeep of his country, AKA the Sutherland Shire. In the beachside suburb of Cronulla, median values have decreased by 6.7% to $2.8 million. Still, listings don’t last long around here. Just three months ago, the price record for a non-waterfront home in the 2230 postcode was broken with the sale of a $6.7 million Mediterranean-inspired four-bedroom abode.
