The Sydney regions which have reached their price peak


Soaring house prices in New South Wales in recent years have provided homeowners and investors with the quickest and sharpest equity boost in history.

A year ago, house prices were rising 46 times the current pace, and at the same time unit prices were also increasing – this indicates that Sydney’s steepest upswing on record has ended, swinging power back towards buyers.

Sydney house prices rose 40% from the trough in June 2020 through to March 2022, providing the steepest upswing on record, Domain’s inaugural NSW Spotlight report reveals.


That’s an enormous increase in a very short period of time and equates to a $708 daily increase throughout the pandemic.

Usually, in an upswing, we’d see greater rates of house price growth over a longer period of time.

But the report also reveals that there are signs of reprieve for buyers on the horizon, with Sydney’s price growth rate experiencing one of the most significant slowdowns of all capital cities, due to flattened house prices and declining unit prices.


Sydney’s housing market is now technically entering into a downturn with many market indicators weakening despite overall house prices pushing marginally higher during the first quarter of 2022.

And the report explains that as per historical standards, the premium price-point is leading the price cycle direction as 6.5% was shaved from house prices over the first quarter of 2022.

The report says:

“It’s clearly evident in the most expensive areas of Sydney with the median house price falling 8.5% in the Eastern Suburbs since its peak in June-2021, and it was the first Sydney region to hit a price peak.”


This has wiped $315,000 off of the median house price but this is still nothing compared to the $927,000 gained in the 12 months leading up to its price peak.

And it’s not just the Eastern Suburbs which has reached their peak or started falling from it.

Sutherland, Ryde, and Parramatta all also reached their house price peak in December last year, having since fallen 5.5%, 4.9%, and 4.25 respectively.

The City & Inner South and Northern Beaches also look to have peaked in December 2021, falling 2% and 0.5% respectively since.

Meanwhile, the data shows that house prices have peaked in Baulkham Hills & Hawkesbury, Blacktown, Central Coast, Inner South West, Inner West, North Sydney & Hornsby, Outer South West, Outer West & Blue Mountains, and the South-West regions.

Prices have peaked, now what?

The last significant downturn was during 2017-19 when Sydney house prices fell 13.8% from peak to trough, Domain’s NSW Spotlight Report points out.

Interest rates weren’t rising at the time but it became harder to get a loan and less credit was available for borrowers.


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