The Sydney suburbs where home buyers can get the biggest discounts

Home sellers in affluent suburbs have been slashing their price expectations, as houses stay on the market for longer and buyers are in no rush to purchase.

Houses in Chatswood, Lane Cove, North Sydney, Mosman, Manly and the northern end of the eastern suburbs, were discounted by up to 13 per cent over the six months to February 2025, Domain data showed.

Sellers in more affluent Sydney suburbs discounted their houses by up to 13 per cent, Domain data showed.Credit: Jeremy Piper

In the more affordable suburbs such as Canterbury, Parramatta, Fairfield and Baulkham Hills, houses were discounted by up to 7 per cent, with some vendors having to sell and meet the market.

Domain’s chief of research and economics Dr Nicola Powell said premium suburbs often record higher levels of discounting, simply because they are pricier suburbs.

The eastern suburbs (north) region has a median house price of $4.4 million on Domain data. Sydney’s median house price is $1,645,444.

“Conditions across Sydney’s housing market have softened, and it’s the premium end that tends to feel the weakness,” she said.

“Slowing conditions come out as high rates of discounting because ultimately the longer a home stays on the market, the greater the discounts will be.”

Powell said affluent suburbs such as Manly are considered auction heartland, with high discounting potentially down to houses passing in.

“Houses may have been unsuccessful at auction and switched to a private treaty sale. The longer a home stays on the market, the deeper the discount becomes.”

Powell said the Reserve Bank’s decision to slash the cash rate to 4.1 per cent in February resulted in a boost in buyer sentiment more recently, but affordability is still at the front of buyer’s minds.

“There is a wide gap between the price of a Sydney house and a buyer’s capacity to pay for it. People are still mindful of how much debt they take on,” she said.

Powell said sellers might be more willing to test pricing when there is less of an urgency to sell. On the flipside, buyers have less urgency to purchase and might be willing to play the waiting game.

“It can take some time for a seller to adjust pricing to meet the market,” she said.

PRD Real Estate chief economist Dr Diaswati Mardiasmo said there’s more room for negotiation when the asking price for houses in more premium suburbs are significantly above Sydney’s median.

Experts said sellers in more affluent suburbs may have less of an urgency to sell and are willing to wait.

“If a house in Manly is listed at $6 million, there’s more room for discounting as opposed to a suburb where the median house price is around $1.5 million,” she said.

Mardiasmo said sellers in affluent suburbs are prepared to play the waiting game.

“They know the value of their homes and the rate cut has provided some relief. They may not need to sell as quickly as before and are prepared to wait.”

OH Property Group buyers’ agent Henny Stier said sellers in affluent suburbs feel financial stress just as much as those in more affordable neighbourhoods.

“They may have jobs that are dependent on bonuses and people aren’t getting bonuses as they were before,” she said.

“Their children often go to private school and for them, taking their kids out of private school is a last resort. Sometimes it’s better to downsize than to take the kids out of school. A lot of these sellers are not stressed sellers, but they’re trying to avoid distress.”

DDP Property founder Zaki Ameer said he’s noticed house price discounting of up to 10 per cent in Chatswood, Lane Cove, North Sydney, Mosman, Manly and the northern part of the eastern suburbs.

“Prolonged high-interest rates and cost-of-living pressures has reduced buyer demand,” he said.

Belinda Coniglio began actively searching for a Sydney investment property in September.Credit: Rhett Wyman

“There are more listings and houses are staying on the market for longer, giving buyers the chance to negotiate.”

Lawyer and business consultant Belinda Coniglio is looking for a Sydney investment pad and hopes now is a good time to buy.

She began her search more than a decade ago but became active again in September, looking at properties in Potts Point, Elizabeth Bay, Darlinghurst, Surry Hills and Paddington.

“I thought I should get into the market now while it’s a downturn,” she said.

Coniglio said she thought it would be a great time to purchase during Sydney’s downturn. Pictured with her daughter.Credit: Rhett Wyman

Coniglio owns two properties in Perth, and said she’s found Sydney sellers to be open to negotiation but not on the terms of sale.

“I’ve purchased before, so I’m quite astute. I’m after location, lifestyle and coastal views,” she said.

“In that category, I think there is less scope for negotiation on price. I could buy an older place and do the work.”

Coniglio believes vendors want buyers who have their deposit and finances ready.

“I feel they’re under financial pressure to sell in a down market, unless they’re doing something else with the money,” she said.