A rebound in the Sydney property market
Sydney’s property values have increased 4.5% in the past three months since the 2022 downturn, with some suburbs beating last year’s prices and one setting another record. High-end buyers, strong migration, and a low supply of homes for sale fuel this trend.
| Suburb | Median value | Three month change | Annual change |
| Houses | |||
| Bronte | $5,158,603 | 10.60% | −11.6% |
| Waverley | $3,606,589 | 11.50% | −14.5% |
| Units | |||
| Bondi Beach | $1,382,586 | 7.10% | −9.9% |
| Bondi | $1,302,056 | 7% | −12.3% |
| Bondi Junction | $1,177,463 | 9% | −8% |
| Bellevue Hill | $1,433,192 | 8.20% | −11.4% |
| Centennial Park | $876,821 | 12.10% | −11.1% |
| Kensington | $942,642 | 6.90% | −7.3% |
| Little Bay | $1,329,907 | 8.80% | 3.30% |
| Paddington | $1,122,614 | 7.90% | −11.9% |
| Rose Bay | $1,469,939 | 7.90% | −9% |
| Vaucluse | $1,303,104 | 7.80% | −12.4% |
With the cost of living rising up and the cash rate at its highest in 11 years, the recent gains would be at risk as more sellers enter the market and the volume of buyers would not be there.
Despite all that, we aren’t seeing an influx of sellers due to higher mortgage rates, noting that distressed sales weren’t likely to go up unless unemployment went up.
Almost a quarter of home sales in NSW last year were cash purchases without mortgages, according to PEXA.
I think that tells us why we’ve seen unusual price growth in some areas: either buyers have been in the market for a long time and have a lot of equity, or they have high-paying jobs and don’t care about interest rates.
