The latest Shore Financial State of Sydney Report predicted continued growth for many Sydney suburbs over the next six months, even as the broader market slows.
Using machine-learning analysis, the Shore Financial report identified 74% of suburbs likely to see price increases, while 11% are expected to remain stable, and 15% may experience declines.
Key suburbs expected to grow by over 5% by mid-2025 include Buxton (Heartland Sydney), Winston Hills (Suburban Sydney), Brighton-Le-Sands (Rising Sydney), Galston (Professional Sydney), and East Lindfield (Affluent Sydney).
The Shore Financial report categorises Sydney’s 600-plus suburbs into five quintiles based on median asking prices, ranging from Heartland Sydney to Affluent Sydney. Suburbs are then evaluated on trends like asking prices, days on market, inventory levels, and sales volumes to forecast growth potential.
“The outlook is promising for the 25 suburbs featured in the report,” Shore Financial CEO Theo Chambers (pictured above) said. “These are seller’s markets with low listings, inventory, and days on market, driving upward pressure on asking prices.”
However, Chambers cautioned that some suburbs face weaker indicators, particularly those balanced between buyers and sellers or classified as buyer’s markets.
For first-home buyers, the forecast is less encouraging.
Chambers said that freestanding houses in Sydney are increasingly out of reach, leading many buyers to seek homes in outer suburbs, consider units, or look outside Sydney altogether.
“Sydney’s affordability challenges mean many first-home buyers are turning to rentvesting in more affordable markets,” he said.
While the Reserve Bank maintains a hawkish stance on inflation, Chambers suggested that monetary easing in early 2025 could improve affordability.
“Even a small reduction in rates could boost borrowing capacity and demand, putting upward pressure on prices in select suburbs,” he said.
The next six months present mixed opportunities across Sydney, with strong growth expected in certain areas and challenges persisting for first-home buyers.
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