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The Sydney suburbs bucking the trend with double-digit growth

Despite property prices declining across Sydney over the past 12 months, a number of suburbs have seen double-digit capital growth.

According to the Shore Financial, State of Sydney Report, some of the more affluent suburbs have seen values increase by as much as 16 per cent.

A number of blue-chip suburbs have been some of the strongest across Sydney led by Wareemba, in the Inner West, with 16.4 per cent growth, Five Dock (13.4 per cent), West Ryde (11.4 per cent), East Ryde (10.1 per cent) and Willoughby (9.3 per cent).

According to the report, inventory levels remain incredibly tight and are putting upward pressure on prices in many high-end suburbs.

Wareemba has just 1.7 months’ worth of inventory, while Five Dock, West Ryde, East Ryde and Willoughby all have less than one month’s worth of stock.

The premium suburbs have also been selling quickly, with the average days on market under 30.

Shore Financial Chief Executive Officer Theo Chambers said certain suburbs are still tightly held and heavily in favour of sellers.

“Most parts of Sydney are buyers’ markets right now, but there are some places that are sellers’ markets,” Mr Chambers said.

“To understand why, look at inventory levels and days on market. 

“These suburbs have very low inventory levels, which tells you buyers are being forced to compete for a limited amount of stock. 

“They also have low days on market, which tells you that buyers are moving fast and making strong offers, based on a fear of missing out.”

Other higher-priced professional suburbs with values less than $2 million have also seen good capital growth in the past 12 months, with Petersham seeing values increase 10.6 per cent along with Dundas Valley at 8.6 per cent.

Both Petersham (one month) and Dundas Valley (1.5 months) also have very tight inventory levels, while days on market are under 30.

For suburbs with median values in the low one millions, East Hills (13.2 per cent), Greenace (11.9 per cent) and Pendle Hill (10.4 per cent) have all seen double-digit growth over the past 12 months.

Some of Sydney’s heartland suburbs priced below $1 million have also seen steady growth, including Mount Druitt (10.1 per cent), Plumpton (9.9 per cent) and Lethbridge Park (8.9 per cent).

Mr Chambers said it was interesting to see how much the Sydney property market had changed since September 2022. 

“Back then, the market was definitely in a downturn – and prices have fallen further in the subsequent six months,” he said.

“However, it now feels as though the worst of the downturn has passed for large parts of Sydney, whereas back then we couldn’t quite see when the end would occur.

“The feedback I’ve been getting from my team of brokers and our large network of real estate referral partners is that the Sydney market is bottoming out, even if we’re not quite at the bottom yet. 

“That’s based on what we’re seeing and hearing on the ground in terms of buyer enquiries, open home traffic and auction clearance rates.” 

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.