Despite property prices trending lower across Sydney, there are still a number of suburbs that continue to perform strongly according to new analysis.
The quarterly Shore Financial State of Sydney Report has found a number of suburbs across Sydney have seen 20 per cent growth in the past 12 months, led by the working-class suburbs of Oakhurst, Prestons and Liverpool.
Other medium-priced suburbs that have continued to perform strongly include Fairfield West (19.1 per cent) and Kirrawee (19.5 per cent).
While at the top end of the market, Frenchs Forest (19.2 per cent), Lindfield (18.8 per cent), Paddington (18 per cent), Marrickville (18.1 per cent) and North Epping (18 per cent) have all seen more than 18 per cent growth up until August this year.
Shore Financial Chief Executive Officer Theo Chambers said the Sydney property market had significantly changed in recent months, but there were still areas holding up well.
“At the moment, prices are falling in many Sydney suburbs, but they’re still holding up well in the 25 suburbs in our report,” Mr Chambers said.
“The average inventory level for these suburbs is a low 1.7 months, which tells you that buyers have relatively few properties to choose from.
“That’s why the average days on market for these suburbs is just 24 days; quality homes are still quite scarce, forcing buyers to compete hard.”
The report analysed Sydney’s 600-plus suburbs and identified the top suburbs in each quintile based on changes in their median house price over the previous 12 months.
Mr Chambers said the market had evolved quickly over the past six months, compared to the previous report.
“Back then, the average annual price growth for the standout suburbs was an astonishing 49.2 per cent; now it’s 18.6 per cent for the suburbs in our report,” he said.
“That shows you that the market has significantly cooled.”
Mr Chambers said the Sydney market was likely to look very different again, six months from now.
“Prices are likely to continue trending down in most parts of Sydney for a bit longer,” he said.
“It’s hard to say how much longer the downturn will last, but it’s important to remember prices skyrocketed during the boom, which means it’s likely only a share of those gains will be given back.”
According to Mr Chambers, the market currently provided more options for buyers.
“If you’re a buyer, conditions are more favourable than earlier in the year,” he said.
“But if you’re waiting for prices to return to pre-pandemic levels, I’d suggest that’s wishful thinking.
“My guess is this correction will end well before we get to that point, and that another growth cycle will then begin.”