Sydney Suburbs Set for Recovery as Interest Rates Bite

Sydney's housing market has been in decline for months, with prices plummeting 4.9% since November. The Reserve Bank of Australia's interest rate hikes and the Albanese Government's property tax reforms are being blamed for the downturn.

Shore Financial's State of Sydney Report predicts that some suburbs will lead the market recovery, but it won't happen until at least 2028. According to CEO Theo Chambers, 'buyers simply can't borrow as much as they could before the Reserve Bank started raising rates again.'

The report identifies Hebersham, Colyton, and Blackett as suburbs that will spearhead the property recovery. These areas have seen median house price growth of 7% in the past year, but Chambers forecasts a slight decline in prices over the next six months.