Sydney and Melbourne might be cooling overall but not all suburbs are following the trend. 

As with all major market cycle swings, some suburbs are standing up to the change extremely well, with properties either growing or holding their capital value and sellers still in command. Other suburbs are following the trend, with prices softening and buyers enjoying new opportunities.  

According to CoreLogic analysis, Sydney peaked in July 2017 and Melbourne in November 2017. Since then, both city markets have recorded patchy results at the suburban level and this is entirely expected. The difference comes down to local market factors and which buyers are most active. 

Generally speaking, we’re still seeing strong demand for high quality homes in desirable, tightly-held suburbs; as well as the more affordable, outlying areas where first home buyer activity has spiked. 

Suburbs where prices are weakening are a mixed bag. Some of them are highly desirable areas that experienced a lot of price growth during the boom, so prices are only dipping now because buyers simply can’t afford (or can’t get the finance) to compete anymore.  

Prices are also weakening in suburbs that are now oversupplied with new apartments, or have been heavily impacted by the departure of investors.  

Below are some tables showing the suburbs with the best price growth and the greatest price dips in the year to 30 June 2018. You need to know what’s going on locally to interpret these figures and that’s where an experienced, qualified local agent can help. 

SYDNEY 

These suburbs had the best growth in Sydney over the year to 30 June 2018. 

Houses:

Units:

These suburbs experienced the most price softening in Sydney over the year to 30 June 2018.

Houses:

Units:

MELBOURNE

These suburbs had the best growth in Melbourne over the year to 30 June 2018.

Houses:

Units:

These suburbs experienced the most price softening in Melbourne over the year to 30 June 2018.

Houses:

Units:

Source: Market Trends, 12 months to June 30, 2018, suburbs with minimum 40 sales pa, house and apartment data excludes suburbs with less than 30% of the relevant stock type, CoreLogic, published 10 September 2018

These statistics remind us that local market factors matter and they will make a difference to sale prices this Spring. 

When citywide markets are in a state of flux, you really need to choose your agent wisely and listen to their advice. 

Anyone can sell a property in boom conditions but only the most experienced, hardworking and knowledgeable agents will continue to achieve great prices when the market is cooling down.