Sydney’s highest price growth suburbs revealed

The report grouped the suburb into five quintiles based on their current median asking price for houses, with the five groups identified as working class (quintile 1), suburban (quintile 2), rising (quintile 3), professional (quintile 4) and elite (quintile 5) Sydney. 

Working class Sydney and suburban Sydney were categorised as suburbs located in the outer ring, while rising Sydney, professional Sydney, and elite Sydney were identified as suburbs located in the middle and inner rings. 

To identify the top-ranking suburbs, the report crunched data on over 600 suburbs located in the NSW capital, systematically weeding out those that don’t hit certain benchmarks and trends related to asking prices, days on market, inventory levels and sales volumes over the last three-month period. 

Oakhurst emerged as the top-ranking suburb in working-class Sydney, recording a 20 per cent jump in median house price year on year to August.

Among suburban Sydney suburbs, the standout performer was Fairfield West, where data showed house prices rose 19.1 per cent over the period.

In the rising Sydney quintile, Kirrawee led the suburb pack with a 19.5 per cent increase in the median house price over the year. 

Elanora Heights topped the professional Sydney quintile, as the suburb notched an 18.2 per cent annual house price growth. 

Elite Sydney’s number one suburb was Frenchs Forest, where the median house price climbed 19.2 per cent year on year. 

Shore Financial chief executive Theo Chambers commented that Sydney’s housing market has drastically changed since March, as more suburbs succumbed to the cooling of the market. 

Citing the figures from their previous report, Mr Chambers stated: “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.”

While prices are falling in the majority of suburbs across Sydney, Mr Chambers highlighted that the top five suburbs for each quintile are still “holding up well”. 

He explained the driving force behind the top 25 suburbs’ solid performance despite the widespread market slowdown.  

“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,” Mr Chambers said.

Looking ahead, Mr Chambers said the Sydney market would look drastically different in the next six months, as the market continues to see a price correction. 

“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,” he said.

He also commented that the current conditions seem to appear more favourable than earlier in the year for buyers and advised aspiring property owners that this might be the best time to break into the market.

“But if you’re waiting for prices to return to pre-pandemic levels, I would 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,” Mr Chambers stated. 

Below are the top five suburbs in each quintile: 

Working class Sydney’s top 5 suburbs

1. Oakhurst (20 per cent) 
2. Prestons (20  per cent) 
3. Liverpool (20 per cent) 
4. Minto (19.7 per cent) 
5. St Helens Park (19.7 per cent) 

Suburban Sydney’s top 5 suburbs

1. Fairfield West (19.1 per cent) 
2. North Rocks (18.9 per cent) 
3. Guildford West (18.8 per cent) 
4. Chester Hill (18.5 per cent) 
5. Condell Park (17.9 per cent) 

 Rising Sydney’s top 5 suburbs

1. Kirrawee (19.5 per cent)
2. Bangor (18.8 per cent) 
3. Erskineville (18.7 per cent) 
4. Forest Lodge (17.3 per cent) 
5. Penshurst (17.2 per cent) 

Professional Sydney’s top 5 suburbs 

1. Elanora Heights (18.2 per cent) 
2. Marrickville (18.1 per cent) 
3. North Epping (18 per cent) 
4. Dulwich Hill (17.9  per cent)
5. Avalon Park (17.5 per cent) 

Elite Sydney’s top 5 suburbs