Despite a general downturn in property prices across Sydney, a fresh report from Shore Financial pointed to several suburbs where prices are expected to climb in the coming months.
The latest State of Sydney Report assessed more than 600 suburbs, categorising them into quintiles from Heartland to Affluent Sydney based on median asking prices.
The study methodically filtered and ranked suburbs by eliminating those not meeting key performance indicators such as asking prices, days on market, inventory levels, and sales volumes from the past quarter. It then forecast potential growth in asking prices for the next six months.
Notable suburbs predicted to see more than 5% growth include Glenmore Park, Kings Park, Belmore, Gymea, and Canada Bay.
Theo Chambers (pictured), CEO of Shore Financial, said that while Sydney’s housing market saw a modest overall growth of 5.2% in the past year, some areas notably outperformed this average.
Suburbs like Leichhardt, Canada Bay, and Auburn saw increases of 9% to 11%.
“Stronger growth locations in 2025 can be found across the city – while they’re occurring across a range of price-points, they do have one thing in common, which is low days on market and limited supplies of inventory, which means buyers in those markets are feeling a sense of urgency,” Chambers said. “Over the next six months, demand is likely to be quite soft in most parts of Sydney, but not all.”
The Reserve Bank’s recent reduction of the OCR to 4.1% could breathe new life into Sydney’s housing market, which has experienced declines throughout the year. Louis Christopher from SQM Research anticipates a 3-7% increase in housing prices by year-end, following a -1.4% quarterly and -0.4% monthly drop in January, as reported by CoreLogic.
Chambers said that while the current rate cuts offer a modest boost, their significant impact on market dynamics is still to come. Further reductions could markedly improve buyer affordability, potentially accelerating price growth, especially in areas sensitive to mortgage changes.
Chambers emphasised the importance of understanding local market conditions, which can significantly influence buying and negotiating strategies.
Despite broader market softness, the highlighted suburbs are poised to outperform due to strong demand and competitive buyer environments.
Chambers said that these areas are likely to continue their upward trajectory, irrespective of broader economic challenges.
