In Sydney’s ritzy Eastern Suburbs, the median house price has dropped $315,000 since its peak in June 2021.
Despite suffering an 8.5 per cent decline from the peak, the median house price of $3,410,000 house prices in Sydney’s seaside suburbs is still $612,000 higher compared to the pandemic-induced trough in June 2020.
According to the Domain data, house prices in the City and Inner South have also dropped by 2 per cent, losing $40,000 since the peak in December 2021.
The median house price in this region is now $1,920,000, which is still $428,000 higher than prices early in the pandemic in June 2020.
House prices in Sydney’s Northern Beaches are also starting to fall, losing 0.5 per cent since the peak in December 2021. Around $14,000 has been wiped off house prices in the region, with the median price still sitting at $2,787,500.
Other areas seeing significant falls include the Sutherland region (median house price $1,625,000), which has seen a 5.5 per cent drop since December 2021.
Ryde has seen a 4.9 per cent drop since December 2021. The median house price is now $2,215,000, with $115,000 lost from the average house price.
House prices in Parramatta (median house price $1,155,000) have also seen a 4.2 per cent decrease, losing $50,500 from the peak in December 2021.
How far will property prices fall?
Sydney saw the sharpest house price growth of 40 per cent, from the trough in June 2022 to March 2022, but the report shows there are now signs of a reprieve for buyers trying to enter the market.
“House prices across all Sydney suburbs experienced an increase in price over the past year, ranging from 6 per cent to almost 58 per cent, widening the wealth divide between home owners and non-homeowners, and stretching the ability of others to upsize,” Domain’s chief of economics and research, Nicola Powell, said.
“It’s pretty easy to find a million-dollar suburb in Sydney, with many regions having none below that price.”
While the market for both houses and units is cooling, Powell does not expect to see a drop below pre-pandemic levels.
“Historically, downturns have been shorter and less severe compared to the preceding upswing,” she said.
“We are expecting the slowdown in price growth to continue and purchasing conditions to improve for buyers but it is unlikely we will see a return to pre-pandemic prices.”
What NSW buyers want
According to the keyword analysis conducted by Domain, people want to live by the water.
“Waterfront”, “view”, “river” and “beach” all ranked towards the top of keyword searches on the real estate listing website.
Sydneysiders also want outdoor space, with a “garden”, “courtyard” and “balcony” high on the wish list. However, people in regional NSW are less concerned about these features.
The working-from-home revolution continues to fuel demand for dedicated workspaces, with “study” the second-most-used keyword in Sydney.