STATE OF THE STATES CAPITAL CITIES
Sydney
Prices have now been rising since December
Sydney house prices have lifted by 2.7 per cent since December 2022 . If this is the start of a continued climb , peak to trough , Sydney ’ s house prices fell by 11.7 per cent . It was the worst hit capital city , likely reflecting higher levels of debt and subsequent sensitivity to interest rates .
There are no suburbs that have been immune to the downturn , with even the most resilient performers seeing declines . The suburbs that have seen the biggest drops this cycle have been some of Sydney ’ s most expensive and those that not only saw very large increases through the pandemic , but have also been the top performers over the past 20 years . Over the past 12 months , the median in Manly has fallen the most , declining by almost $ 400,000 . Prices however are back on the move and the median for Manly has increased by $ 100,000 since December . The time frame is narrowing to grab a bargain in some of Sydney ’ s most popular suburbs .
The suburbs that have held up the best are those that weren ’ t that expensive to begin with . The Blue Mountains did see strong growth during the pandemic as people began to work differently but has seen the smallest drop in Sydney over the past 12 months . Like the rest of Sydney , the cheapest suburbs are again starting to see price increases .
The outlook for Sydney is for greater strength in 2023 than what we saw in 2022 . Conditions appear to have stabilised but we ’ re yet to see interest rates peak and there are a lot of people that will come off particularly low fixed rates over the next 12 months . At the same time , population growth is back , we have a shortage of properties for sale , and construction challenges will limit new development .
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