Sydney regions suffer six figure price drop as borrowing power reduces

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Pricier parts of Sydney are suffering the largest yearly decreases in home values after rising interest rates sent prices tumbling for eight months in a row.

Some Sydney regions saw six figures slashed from property prices over the past year as borrowing power dropped and buyer sentiment waned.

Data powered by PropTrack showed median home values in the popular Northern Beaches region dropped 13.5 per cent in the 12 months to October to $1,944,000.

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This represented a decline of more than $300,000.

Values in the eastern suburbs shrank 8.6 per cent or $137,800 to $1,460,000 while a 7.6 per cent drop in the North Sydney and Hornsby region saw the median shrink by $119,400 to $1,438,000.

Sutherland Shire values wound back 7.1 per cent, or $104,250, to a new median of $1,362,000.

While prices across Sydney fell 6 per cent in the year to October, there were six regions where negative growth was greater and seven where it wasn’t as severe.

One region, the south west, recorded slight growth of 0.31 per cent.

PropTrack economist Eleanor Creagh said the data showed higher priced regions were feeling the worst effects of the downturn.

In contrast, more affordable regions such as the outer south west and south west continued to hold up well.

She said the trend extended to regional NSW, where more affordable districts like New England and North West as well as the central west, Riverina and Murray saw values increase by 12-15 per cent over the past year.

She said it was likely that more affordable regions with lifestyle appeal would continue to record a lesser pace of price falls as interest rates climbed.

“Interest rates continue to be a primary driver of price falls,” Ms Creagh said.

“It does take a bit of time for higher interest rates to affect prices so they probably are going to continue to fall as interest rates continue to rise.”

Largest yearly price falls in dollar terms by region

(12 months to October)

Sydney – Northern Beaches $304,958

Sydney – City and Inner South $92,384

Sydney – Eastern Suburbs $137,898

Sydney – North Sydney and Hornsby $119,456

Sydney – Sutherland $104,250

Sydney – Inner West $72,493

Sydney – Ryde $63,259

Sydney – Inner South West $43,692

Central Coast $37,211

Sydney – Blacktown $33,127

Sydney – Parramatta $28,893

Sydney – Baulkham Hills and Hawkesbury $27,144

Sydney – Outer West and Blue Mountains $4,645

Source: PropTrack.

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Originally published as Sydney regions suffer six figure price drop as borrowing power reduces

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