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The inner Sydney suburbs where property prices have dropped almost $200k

The inner Sydney suburbs where property prices have dropped almost $200k

Over the last three months, property prices in some inner Sydney suburbs have fallen by over $190,000, according to the latest CoreLogic data.

Released to The Australian Financial Review, CoreLogic figures show that four New South Wales suburbs topped the list for greatest quarterly decreases in property values as of February 2022.

Suburbs where house prices saw greatest decrease over 3 months

SuburbStateQuarterly changeMedian value
BeaconsfieldNSW-9.2%$1,768,069
NewtownNSW-6.6%$1,821,327
Surry HillsNSW-6.1%$2,197,608
BirchgroveNSW-6.0%$3,176,352
South YarraVIC-5.2%$2,168,299
ToorakVIC-4.7%$4,357,794

Suburbs where unit prices saw greatest decrease over 3 months

SuburbStateQuarterly changeMedian value
BarangarooNSW-8.5%$2,292,937
Box HillVIC-5.3%$516,686
The RocksNSW-5.0%$1,550,213
BlackburnVIC-4.5%$760,373
LeedervilleWA-4.3%$485,424
Hampton EastVIC-4.0%$825,623

Source: CoreLogic

Beaconsfield recorded the greatest quarterly house price change, falling 9.2% to $1,768,069 as of February 2022. This was followed by Newtown (6.6%) with a value decrease of $162,662 in the last three months, Surry Hills (6.1%) with a value decrease of $134,054 and Birchgrove (6.0%) with a value decrease of $190,581.

Housing affordability issues, as well as tighter lending restrictions and out-of-cycle rate hikes, have been attributed as causes to these latest price falls. When paired with work-from-home flexibilities allowing more Aussies to own homes further from the CBD, it’s not unsurprising that decreased demand for inner city dwellings – such as Barangaroo units - may have also pushed down property values.

Eliza Owen, CoreLogic’s head of research, said to the AFR: “The premium end was more volatile compared to the lower end, but the very high growth recorded earlier in the cycle had also dampened demand.”

“I think affordability constraints, tighter lending conditions and higher fixed rates have likely been enough to cool premium markets, and the sharpness of the fall relates to the volatility in the high end of the market, and the extremely strong run up in price growth,” she said.

Areas where property values grew

CoreLogic figures also noted the locations where house and unit prices grew most significantly over the three months to February 2022.

Suburbs where house prices saw greatest increase over 3 months

SuburbStateQuarterly changeMedian value
KooralbynQLD14.9%$563,389
Logan CentralQLD14.3%$435,811
SilverdaleNSW6.9%$1,136,481
Camden SouthNSW6.3%$976,137
DromanaVIC5.5%$1,145,562
TootgarookVIC5.4%$1,142,006

Suburbs where unit prices saw greatest increase over 3 months

SuburbStateQuarterly changeMedian value
New PortSA11.7%$319,456
Tanah MerahQLD11.1%$353,064
WaterfordQLD11.0%$265,034
Seaford MeadowsSA11.0%$391,075
West BeachSA10.4%$366,310
CalamvaleQLD10.2%$434,528

Source: CoreLogic

Interestingly, the state or territory which recorded the most locations in these top-ranking lists was Queensland. The latest Regional Movers Index data shows that Queensland suburbs recorded the strongest annual growth in migration in 2021, with the Gold Coast and the Sunshine Coast are the most popular locations for city-dwellers looking to migrate to.

It’s not unsurprising that those who may feel priced out of capital cities like Sydney and Melbourne are instead considering a sea change to the Sunshine State and, in turn, driving up property prices.

If housing affordability is impacting your ability to save for a property or gain home loan approval, there may be some options available worth considering. Depending on your situation, these may include:

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This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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