Sydney suburbs where home prices rose the most over 2022

2022 was a whirlwind year for Sydney real estate – but there were some suburbs that defied the downturn with annual price growth of over 40 per cent, gifting recent buyers with rapid equity.

It’s been a turbulent 2022 for Sydney real estate – but western suburbs offering better value for homebuyers have emerged as a rare bright spot for the market, along with inner city units.

A study of 2022 trends by PropTrack showed the west had Sydney’s biggest property price rises over the calendar year, defying a downturn that swept the country after successive rate hikes.

Houses in western suburbs were also the most sought after properties this year as shrinking buyer budgets pushed home seekers westward to areas offering a lower entry point into the market.

High demand suburbs where property values increased by more than 40 per cent annually – the highest in Sydney – included Box Hill, Gables and Melomba, in the northwest, and Leppington, Carnes Hill and Leppington, in the southwest.

Kirribilli was one of the top growth areas for unit prices.

The inner city unit market recorded price growth too, gaining traction with home seekers this year after being shunned during the early pandemic.

The PropTrack study, which measured some of the key ways homebuyer activity changed over 2022, indicated there were many other early pandemic housing trends that unravelled this year.

In one of the biggest reversals of 2021, pricey coastal suburbs that led 2021’s record price boom recorded the biggest price falls this year.

Those coastal areas also recorded significant drops in buyer demand, according to the analysis of multiple property metrics.

PropTrack economist Anne Flaherty said the fastest interest rate rises in 30 years made people rethink where they wanted to live and the west was being favoured over many pricey eastern markets.

“What we’ve seen overall, is that the suburbs that have the biggest medians have seen the largest falls,” Ms Flaherty said.

“The main driver of that is interest rates. The higher the median, the more a buyer needs to borrow and so the relative impact of rates has been greater in more expensive areas.

“We’re also seeing, even though the market as whole is cooling, it’s not the case in the most affordable areas. People can no longer afford their desired suburb so they are going further out. They can’t get the bride, so they will try the bridesmaid.”

Source: PropTrack.

Ms Flaherty added that even buyers with high incomes and considerable equity in their current homes to fund a new purchase were no longer prepared to pay last year’s inflated prices.

“Competition in those coastal lifestyle suburbs was so intensive during the pandemic that to be successful, buyers were going above and beyond with price,” she said.

“They’re not willing to put in those really higher offers anymore. The confidence has gone and the supply and demand equation has moderated.”

Auctioneer Michael Garofolo of Cooley has called some of Western Sydney’s most competitive auctions this year and said the relative affordability of prices was ensuring continued demand.

“Sales in the east have been impacted a lot more because the value is different,” he said.

Auctioneer is Michael Garofolo at a recent auction in Bossley Park. Picture: David Swift

“It’s like a concert. The cheap seats go first and as costs go up people want bang for their buck. Rather than be right in front of the stage, they will go a bit further back for a lower price.”

Mr Garofolo said more buyers were prepared to embrace a lifestyle in a further out area.

“Covid made people realise you don’t need to be near the CBD. And post-Covid, that hasn’t changed. Most people aren’t going into the city regularly and the infrastructure in the west has really improved.

“In some areas you can get a double-storey house for half the price you would closer to the city, so for families, buying in the west becomes a no-brainer.”

Ms Flaherty said the inner city unit market performed well this year even with the shift of buyers westward because rents were skyrocketing due to increased migration and this was enticing investors back into the market.

Box Hill was Sydney’s top growth suburb in 2022 for house prices. This luxury home achieved the top suburb price at $3.49m.

Mortgage Choice Revesby broker Michael Saliba said most home seekers in the current market considered the home more important than the location.

“They don’t want to compromise on the kind of property they are getting, but they will be flexible with where it is,” he said. “So there’s a lot of first homebuyers moving a few suburbs out because if they bought where they currently are it would be a substandard home or they wouldn’t be able to afford one at all.”

TOP GROWTH SUBURBS FOR 2022 - HOUSES

Suburb	Median price	Annual price growth
1	Box Hill	$1,27m	I 54.9%
2	Austral	$1.02m	I 53.7%
3	Melonba	$1.15m	I 46.5%
4	Leppington	$1.16m	I 41.8%
5	Gables	$1.55m	I 40.7%
6	Carnes Hill	$1.34m	I 40.3%
7	Silverdale	$1.25m	I 39.9%
8	Cobbitty	$1.08m	I 36.1%
9	Blackwall	$1.2m	I 34.5%
10	Kurrajong	$1.82m	I 34.4%

TOP GROWTH SUBURBS FOR 2022 - UNITS

Suburb	Median price	Annual price growth
1	Forest Lodge	$1.28m	I 43%
2	Annandale	$1.11m	I 37.9%
3	Kirribilli	$1.79m	I 32.4%
4	Edgecliff	$1.55m	I 30.8%
5	Richmond	$660,000	I 29.7%
6	Rydalmere	$878,000	I 29.1%
7	Long Jetty	$705,000	I 28.9%
8	Darling Point	$2.75m	I 25.7%
9	Thornleigh	$975,000	I 25.0%
10	Oatley	$1.05m	I 24.3%

Originally published as Sydney suburbs where home prices rose the most over 2022