MORE: Australia\u2019s \u2018happiest places to live\u2019 revealed<\/a><\/p>\n Kirribilli has seen the greatest annual price decline for units according to new data. Photo: iStock<\/p>\n North Avoca had one of the most significant annual decline of house prices<\/p>\n MORE: Jackie O\u2019s cunning $30m exit plan amid Kyle split<\/a><\/p>\n But price declines have been substantially larger in premium markets like the eastern suburbs, lower north shore and northern beaches. <\/p>\n The biggest drop annually was for units in Kirribilli with a price decline of 32.3 per cent, followed by a dip of about 20 per cent for suburbs Waverley and Kurraba Point.<\/p>\n Houses in Warrawee have seen an annual decrease in prices of 25.9 per cent followed by North Avoca, Sylvania Waters, Longueville and Queens Park that also saw a significant drop. <\/p>\n Interest rate increases are the strongest factor for the downturn, likely to keep prices falling or slowing growth in the months ahead.<\/p>\n MORE: Landlord\u2019s kind act over 43 years stuns<\/a><\/p>\n REA Group Senior Economist Anne Flaherty says coastal areas have been among the worst affected<\/p>\n REA Group Senior Economist Anne Flaherty said coastal areas have been among the most sought-after locations in recent years, particularly as the pandemic reshaped how and where people live and work. <\/p>\n \u201cThis drove strong price growth between 2020 and 2022, significantly eroding affordability and leaving these markets more exposed to a pullback,\u201d Ms Flaherty said.<\/p>\n \u201cSince then, price growth across many regional and coastal areas has slowed, with some experiencing declines.\u201d<\/p>\n Ms Flaherty said now, higher interest rates are adding further pressure. <\/p>\n \u201cGiven the relatively higher price points of many coastal markets compared to other regional areas, the impact of rising rates is being felt more acutely,\u201d she said.<\/p>\n MORE: How David Jones signed its own death warrant<\/a><\/p>\n Economist, Broker and Founder of Its Simple Finance Joseph Daoud said the property market is going through a correction.<\/p>\n MORE: White Fox couple\u2019s \u2018super compound\u2019 after $150m buying spree<\/a><\/p>\n Economist, Broker and Founder of Its Simple Finance Joseph Daoud said the housing market is going through a correction and the first suburbs to feel the effects are historically the upper end of the market.<\/p>\n \u201cThe lower end of the market is currently being buoyed by first home buyers utilising the First Home Guarantee,\u201d he said.<\/p>\n \u201cSo everything below the $1.5 million price cap (in Sydney) is still growing in price thanks to sustained demand and limited supply.\u201d<\/p>\n Mr Daoud said with the RBA increasing rates, mortgage holders are forced to reduce their spending, limiting borrowing capacity and reducing the pool of those able to afford the higher end of the market.<\/p>\n \u201cSo with demand dropping in the upper end and further rate rises expected this year, we\u2019re likely going to continue to see housing values fall,\u201d he said.<\/p>\n \u201cBy how much is the real question. Analysts are predicting as much as a six per cent drop in Sydney home values by the end of 2026.\u201d<\/p>\n MORE: $30m of Bondi \u2018legacy\u2019 for sale<\/a><\/p>\n Sydney\u2019s east has been hit hard by price falls. Picture: NewsWire \/ Simon Bullard.<\/p>\n MORE: Budget tax reforms\u2019 hidden sting for young Aussies<\/a><\/p>\n According to Shore Financial Founder and CEO Theo Chambers, many of the suburbs that have seen significant annual decrease are coveted by young professionals, who would likely be in a more exposed debt position, or downsizers.<\/p>\n \u201cGenerally we find that young professionals who have recently had children are a bit more stretched financially and sometimes they\u2019re the ones that are positioned to sell in climates like now and accept lower offers than others would,\u201d he said.<\/p>\n \u201cIn Kirribilli, Kurraba Point, Elizabeth Bay and Longueville, definitely areas like the eastern suburbs, there\u2019s young professionals that are really stretched entering those marketplaces because they\u2019re expensive marketplaces and normally people put all their eggs in the basket of their home.<\/p>\n \u201cSo normally those areas where price affordability is the most stretched, they\u2019re the ones that have the most to correct in tough times.\u201d<\/p>\n Mr Chambers said in a strong market, people are willing to pay a lot more than the price guide because they feel prices and property are very buoyant in blue chip areas.<\/p>\n \u201cIn a weak market, that confidence really dissipates quite quickly, the disparity between a good price and a bad price is a significant amount in terms of a percentage,\u201d he said. <\/p>\n MORE: \u2018Sticky\u2019 reason cafes charging $10 for coffee<\/a><\/p>\n Shore Financial Founder and CEO Theo Chambers says young buyers are stretched.<\/p>\n \u201cThe other extreme there looks at downsizes, North Avoca and Longueville, it could be people either selling, North Avoca could be holiday homes and Longueville could be a downsizer that\u2019s looking to take equity out of their home, get a smaller property and use that equity to invest to get an income.\u201d<\/p>\n Mr Chambers said buyers could be reactive to the negative economic news and data right now.<\/p>\n \u201cPeople are factoring in future rate rises and the initial hit in prices is happening right now,\u201d he said. \u201cThese windows of softening prices are generally short-lived, they generally only last three to six months. Towards the end of the year, I think things will stabilise.\u201d<\/p>\n Rydalmere is another suburb hit by a big fall in home values.<\/p>\n SYDNEY SUBURBS WHERE PRICES HAVE FALLEN (ANNUALLY) Kirribilli U -32.3<\/p>\n Waverley U -26.5<\/p>\n Warrawee H -25.9<\/p>\n Kurraba Point U -21.6<\/p>\n North Avoca H -20.1<\/p>\n Elizabeth Bay U -19.2<\/p>\n Sylvania Waters H -19.1<\/p>\n Longueville H -18.9<\/p>\n Darling Point U -18.3<\/p>\n Rydalmere U -18<\/p>\n Queens Park H -17.6<\/p>\n Killara U -16.2<\/p>\n McMahons Point U -15.4<\/p>\n Rozelle U -15.4<\/p>\n Mosman U -13.5<\/p>\n Northbridge U -12.4<\/p>\n Bellevue Hill U -12.2<\/p>\n Source: PropTrack<\/p>\n MORE: Australia\u2019s $85bn savings crisis exposed<\/a><\/p>\n<\/p>\n
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\nSuburb Property Type Change in Median Price 12 months<\/p>\n