NSW property market: House sale price on decline in Sydney, slow rise in regional NSW

NSW’s lucrative property market is taking a hit, with data revealing some of the state’s wealthiest postcodes are among the worst affected. See the full list of the worst hit suburbs and those bucking the trend.

NSW’s lucrative property market is on a downward trend with house values having peaked over a year ago, with suburbs in Sydney’s northern beaches and inner west worst-affected.

Data by CoreLogic reveals Birchgrove has been worst-hit in the slowing property market, with home values falling by 8.4 per cent between March and May.

Other suburbs hit hard include Collaroy Plateau, Strathfield South and Roseville Chase.

CoreLogic data’s research director Tim Lawless says a range of factors are contributing to the slowing housing market, including a shift towards higher fixed term mortgage rates and the gradual expiration of Covid support payments.

More recently, surging inflation and higher variable mortgage rates have also contributed to the downward trend.

But not all areas are experiencing the slowing market equally.

According to CoreLogic data, the Sydney suburbs bucking the downward trend are overwhelmingly in the city’s south west and outer western suburbs, including suburbs such as Fairfield, Rouse Hill and Camden.

Home value growth by region: Sydney

Home value growth by region: Rest of NSW

The above data does not include the price of units.

Suburbs in outer Sydney, such as Box Hill (pictured), bucked the market’s downward slump. Picture: Nearmap.

According to CoreLogic data, the more affordable ends of the market are not experiencing the same slump as other wealthier areas.

“Most of the regions still recording some level of growth have housing values below the million dollar mark, highlighting that the more affordable end of the market seems to be holding up better than the more expensive end of the market,” Mr Lawless said.

“Over the three months ending May, Sydney’s lower quartile recorded a 0.1 per cent rise in housing values, while the upper quartile recorded a 2.7 per cent drop in housing values.”

But regional NSW is telling a different story — over the previous three months, house values across regional NSW were up 3.3 per cent, while those across Sydney went down 1.4 per cent.

The strongest upward trend in regional NSW is in areas such as Armidale, the upper Hunter and Inverell, while areas which previously rose the fastest did not perform as well.

Wollongong values were flat over the past three months, Newcastle house values rose only 0.5 per cent and the Richmond Valley coastal region, which includes Byron Bay, only increased by 0.8 per cent in average value.

House values in western NSW towns, such as Coolah, generally rose over the past quarter. Picture: David Swift.

Sydney’s big losers

Sydney’s big winners

Regional NSW’s big losers

Regional NSW’s big winners