How Sydney’s ‘two speed’ housing market is fuelling interest in this suburb

1 month ago 15

As Sydney homebuyers come to grips with record high prices to purchase a property, one suburb is way out in front. And it’s an insight into what buyers value.

The northern harbourside suburb of Cammeray led the charge, experiencing 42.5 per cent growth over the past 12 months. McGrath Crows Nest sales agent Trevor Richardson said concerns about rezoning in neighbouring suburbs and Cammeray’s community focus had been key drivers for buyers.

“Cammeray, it has always been relatively desirous and there has not been much development,” Richardson said. “Even with what has happened with Crows Nest, North Sydney and Mosman, Cammeray has not seen the rezoning impact, and for some people, that’s a really good thing.”

Domain chief of research and economics Dr Nicola Powell said interest in the tightly held suburb was supported by the fall in the cash rate, vis three interest rate cuts in 2025.

“You can see a lot of that growth in the last year. It’s a smaller suburb with 54 sales. In small, high value suburbs, the median is substantially above the Sydney-wide figure,” she said. “It’s a family-oriented location, and given that price point, these are more established home owners.”

It comes as the median cost of a house in Sydney rose to almost $1.76 million in the three months to December, data from Domain’s House Price Report released on Thursday revealed. Prices increased by 2 per cent, or $34,177.

On the south side of the city, house prices in Sans Souci increased by 25.7 per cent over the past year while further west, Green Valley and the surrounding suburbs of Catherine Field, Austral and Hinchinbrook hovered either side of the 20 per cent mark.

Powell said the federal government’s 5% Deposit Scheme, which came into effect in October last year, had fuelled activity among first home buyers.

“When you are looking at Green Valley, Bringelly, Austral and Hinchinbrook, the price bracket is lower and more attainable. This would attract families priced out of those more expensive suburbs. $1.2 million is an attractive price bracket for first homebuyers in Sydney,” she said.

CompareClub head of research and insights Kate Browne said Sydney growth reflected the “two-speed” nature of the market for buyers.

“People in the market are doing well – their properties are appreciating. They are in, but it’s getting in [that is a challenge] and we are seeing that moving further and further away from people,” she said.

Government incentives had finally placed Bianca Knoechel, 25, and her partner, Jed Daisley, 30, in a position to buy their first home, although not where they were initially looking in Strathfield and Burwood.

“We have been looking and hoping to get a house for two-ish years but the government schemes have made it more affordable. We have been looking closer to the city but those places are out of our budget,” said Knoechel. “Liverpool and Glenfield, where we are renting, is much more affordable.”

Knoechel and Daisley plan to use the federal government’s Help to Buy Scheme, a shared equity model where eligible borrowers contribute at least 2 per cent, and the government contributes up to 30 per cent for existing homes or 40 per cent for new homes. The government proportionally shares any gains or losses when the property is sold.

Bianca Knoechel has recalibrated plans to buy a home, shifting her search from Burwood and Strathfield to Liverpool and Glenfield.

They are hoping to find a two-bedroom apartment between $600,000 and $700,000 but competition is intense.

“Property inspections are packed, especially the ones in our price range,” Knoechel said.

“We can be looking on the Wednesday to inspect something on the Friday and then find out on Thursday that a deposit has already been taken, which makes it quite difficult. We’re sure we’ll eventually be able to get something but a lot of people have the same idea.”

Despite first home buyers’ challenges, the data shows the strongest unit growth is in some of the more affluent areas of Sydney. Crows Nest, St Ives and Milsons Point are leading the way. The median price of a unit in Milsons Point is now $2,218,000.

Ray White chief economist Nerida Conisbee said affordability constraints were being felt across Sydney.

“The top end of the market was really weak until mid last year but once interest rate cuts kicked in, it picked up. There’s a myth about high-priced suburbs that people buying there have tonnes of cash but people still need to take out mortgages for $4 million or $5 million properties,” she said.

“They might not need to take out 90 per cent or even 80 per cent loans but they generally need a mortgage.”

Conisbee said growth was now expected to slow. Given the uncertainty in the market, she said a rate rise was possible mid year, but she was “not certain” it would happen in 2026.