Sydney’s prestige property market in growth
Sydney’s prestige property market saw the strongest price growth last month, rebounding more strongly than the more affordable segment, according to CoreLogic.
Historically, high-end suburbs are the first to react to market shifts, often leading both upswings and downturns. As a result, the latest increases at the upper end of the market suggest the early stages of a broader recovery, as falling interest rates improve borrowing power and buyer confidence.
When rates drop, affluent buyers – who typically rely more on finance than first home buyers – can access larger mortgages, increasing competition for premium properties. At the same time, fewer owners in these areas feel pressure to sell, tightening supply and pushing prices higher.
Westpac senior economist Matthew Hassan told Domain that locations such as the Eastern Suburbs have been bellwethers for the Sydney property market last month, leading other suburbs in price moves. While overall price gains may have been slightly affected by seasonal factors such as the reopening of the auction market, he believes the price rises are genuine rebounds.
This trend mirrors previous cycles where the upper end moved first, followed by mid-tier and entry-level markets.
About the author – Alex Veljancevski is a Sydney mortgage broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.
