Real estate Sydney: Suburbs where homes are earning the most money

These Sydney suburbs have emerged as the ‘epicentre’ of Aussie home price growth over the past six months.

Fiona Killman

@FionaKillman

3 min read

July 28, 2023 - 1:54PM

Sydney' has emerged as the “epicentre” of Australia in terms of price growth.

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Sydney has emerged as the “epicentre” of Australia as the top growth suburbs over the past six months are revealed.

New data from PropTrack has shown the Sydney suburbs leading the price recovery, with the northern beaches and inner south regions recorded the highest growth in house prices across NSW.

Meanwhile the inner west suburb of Hurlstone Park topped the national list with 14.4 per cent growth to an average median house price of $2.03m.

Other suburbs to make the national top 10 include Fairlight, Kings Langley and Manly while Sydney also topped the national list for unit growth with Forest Lodge, Kirribilli and Haymarket recording growth over 12 per cent.

The inner west suburb of Hurlstone Park topped the national list of house price growth over the past six months. Picture: Christian Gilles

A home in Floss St, Hurlstone Park, sold for $2.1m ion July 25 2023.

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PropTrack senior economist Paul Ryan said the growth was “exceptionally high”.

“Usually over a whole year your average price growth is in the range of 3-4 per cent, so this is really exceptional growth,” he said.

“However it does follow price falls last year so I think the data shows how much of a rebound we’ve seen in property markets this year compared to last year.

“A lot of the Sydney lists are top nationally so it’s kind of the epicentre … Sydney led the price falls last year and now they are well and truly leading price increases this year.”

PropTrack senior economist Paul Ryan.

Top growth suburbs across NSW were in the inner west and northern areas, while the inner south recorded strong growth when it came to unit values.

Mr Ryan said the top growth areas were well-known, sought after suburbs such as Manly, Alexandria and Hurlstone Park.

“These have always been popular and the price points speak to that,” he said.

“The buyers there are likely to be city/professional class so it’s a combination of being back in the city, job security and strong demand relative to the available supply of premium homes in those regions.”

He said the city and inner south had been the strongest performing areas of Sydney over the past year.

The Northern Beaches recorded strong growth over six months with top suburbs including Fairlight, Manly, Collaroy Plateau and Narraweena. Picture: Julian Andrews

“If you look at Sutherland Shire and the inner west/inner south west, they are the really strong performers,” he said.

“If we think about proximity to the city and price point, the inner west has always been the cheapest compared to North Sydney or the eastern suburbs. People are recognising the value there more, however Hurlstone Park has always been sought after. None of the suburbs we see in the lists are considered undiscovered gems.

“They are close to the city, well serviced by public transport, education and health services, they tick a lot of boxes so you can see the appeal.”

Other factors such as lower stock levels and buyer confidence were also playing a role nit he high growth.

“If you think back to last year we had interest rate increases and a lot of uncertainty,” Mr Ryan said.

Low stock and increased buyer confidence are also driving up prices. Picture: Damian Shaw

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“This year housing demand continues to be really strong, interest rates continue to increase bit one of the things that has dissipated has been the uncertainty. The economy is still performing really strongly, the unemployment rate in NSW is the lowest in the country.”

He said there was uncertainty about whether the price growth would continue at this rate.

“Will the slowing economy play into this and will demand slow, will increased supply dampen this price growth?” he said.

“These are all kind of risks. All our forward indicators in Sydney, we still have auction clearance rates above 60 per cent, we’ve had really strong price growth over the past few months. These are all pointing to continued strong price performance over the coming months leading to spring.”