Sydney regions leading home price surge from interest rate cuts

News.com.au

3 days ago

Price rises and interest rate drops are driving a fear-of-missing out for buyers in Sydney's most coveted regions.
New data from PropTrack has revealed Sydney bucked a national property trend in June, with the most price growth experienced in its more exclusive areas.
REA Group economist Eleanor Creagh said this was an exception to the rest of the nation, where more affordable markets were generally recording larger home price increases.
'Across the country, outperforming areas have predominantly been more affordable areas, but in Sydney it has been a lot of the higher priced markets that have bounced back,' she said.
'The recent price increases have reversed the price falls that occurred in the second half of the year.'
Sydney's eastern suburbs experienced the highest growth in June, with home prices rising by 0.99 per cent.
Other top performers included the northern beaches (0.96 per cent) and the Ryde region (0.91 per cent).
Meanwhile, outer regions such as Sutherland, in the south, and the Hills Shire and Hawkesbury, to the north, experienced marginal price declines.
Data from PropTrack also showed that Greater Sydney experienced a monthly growth of 0.5 per cent, compared to 0.3 per cent in regional NSW.
Ms Creagh said the growth in Sydney's pricier regions showed a 'sharp re-acceleration' in market momentum.
Fear-of-missing-out has boosted activity in these areas, with buyers looking to enter the market before prices grow even further, she said.
'It has just been that people have been encouraged by interest rate cuts, but it's also the prospect of more price rises,' Ms Creagh said.
'Those sitting on the sidelines would be buying with the knowledge that rates may fall and prices will continue to rise.'
Buyer FOMO has also been exacerbated by a lack of supply, with total listings in Sydney declining by 10.3 per cent in June according to data from SQM Research.
For the remainder of 2025, Ms Creagh said subsequent growth may be at a slower pace than in previous interest rate easing cycles.
'Although it is clear that there is renewed momentum, stretched affordability will keep price rises in check,' she said.
She added that it was 'unlikely' the market would see a repeat of the kind of growth that occurred in 2021, when interest rates fell to record lows and prices soared.
JUNE PRICE GROWTH BY CITY REGION
Eastern Suburbs 0.99%
Northern Beaches 0.96%
Ryde 0.91%
South West 0.71%
CBD and Inner South 0.55%
North Shore 0.50%
Canterbury-Bankstown/St George 0.40%
Parramatta 0.39%
Outer South West 0.29%
Outer West and Blue Mountains 0.20%
Blacktown 0.19%
Inner West 0.10%
Sutherland -0.03%
Hills Shire and Hawkesbury -0.23%