NSW property market on the decline says CoreLogic data

The lucrative Sydney property boom has fallen for the first time, with data revealing the price bubble has popped on some of the state’s multimillion-dollar postcodes. Search our interactive and see where your suburb is placed.

Ben Talintyre

2 min read

March 17, 2022 - 6:44PM

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Sydney’s housing boom appears to have popped with some suburbs’ median house value falling for the first time in almost 18 months.

The decrease comes as property prices across the city skyrocketed in recent times, a period which saw the value of some homes rise by 25 per cent.

Data from CoreLogic has revealed the good times could be coming to an end for the property market with a drop in median house value occurring for the first time since September 2020.

In the three months prior to February, the median house value of some suburbs dropped by 10 per cent.

Pyrmont has experienced the sharpest drop in property prices in the three months to February.

According to CoreLogic’s head of research Eliza Owen more than 10 per cent of the NSW housing market saw a decline in market value in the three month period.

“We analysed 1334 house markets across NSW, and of these, 156 (11.7 per cent) saw a decline in values over the three months to February,” she said.

“Of the suburbs that declined in value, many were at the ‘higher’ end of the housing market, and in more central locations. Of the house markets that declined, the largest quarterly declines were concentrated in the city and inner south.”

While some housing markets on the edge of Sydney still experienced growth, others in the CBD saw the sharpest drop.

CoreLogic’s head of research Australia, Eliza Owen

“Quarterly growth has been strongest across some of the peripheral markets of the city, such as Asquith, Silverdale and Camden South – even peripheral sub-markets like Homebush, Rodd Point and Five Dock, which some might consider to be ‘outer’ inner west,” Ms Owen said. “Meanwhile, more high-end, central locations such as Barangaroo, Newtown and Beaconsfield saw a pretty sharp drop in the quarter. It’s hard to say what drives this kind of pattern but it has been observed before, where the cycle starts closer to the city and ripples outward.

“Some explanations posited include the purchasing point and sophistication of property buyers, who target inner city areas or blue chip areas, which is why these markets may lead the movements of others,” she said.