Brett Warren , National Director – Metropole Group
Sydney’s housing market is once again showing its strength, with both premium and affordable suburbs driving the latest rebound.
According to PropTrack data, home values across the Harbour City jumped by nearly 1.5% over the most recent quarter – adding more than $10,000 to the average dwelling price. In August alone, prices rose 0.7%, underscoring renewed confidence among buyers.
Interestingly, it is Sydney’s most expensive postcodes and its most budget-friendly areas that are leading the charge, according to the new research.
The eastern suburbs – long regarded as blue-chip territory – recorded average gains of 2.84% over the past three months, as upgraders returned to prestige enclaves like Bondi, Double Bay and Vaucluse.
Meanwhile, the northern beaches and Sutherland Shire also performed strongly, rising more than two per cent, with areas such as Manly, Cronulla and Caringbah seeing healthy demand.
At the other end of the spectrum, the city’s southwest is surging ahead, notching up a 3.25% quarterly rise. Suburbs like Liverpool, Fairfield, and Mount Druitt continue to attract budget-conscious buyers and investors thanks to their relative affordability, with many units still in the $450,000–$550,000 range – well below Sydney’s median of $821,000.
The inner southwest, including Canterbury-Bankstown and St George, also recorded solid gains of 2.3%, with suburbs such as Bankstown, Hurstville and Kogarah proving popular.
This broad-based growth highlights two clear trends. First, lower interest rates are lifting sentiment and boosting borrowing capacity. Second, the demand is widespread – from families seeking affordable entry points, to upgraders eyeing lifestyle suburbs that had softened over the past two years.
Looking ahead, with constrained supply, strong migration, and the expanded Home Guarantee Scheme due in October, Sydney’s property market looks set for an active spring.
For both homebuyers and investors, the opportunities are spread across the city – from prestige postcodes to high-yielding heartlands.
