<\/p>\n
A unit in this building on Culworth Ave in Killara recently sold for $980,000, which was below the $989,000 price paid by the vendors.<\/p>\n
Suburbs in the Parramatta areas such as Rydalmere and Dundas recorded some of the sharpest annual drops, with unit values declining by an average of nearly 20 per cent.<\/p>\n
Similar falls were recorded for units in upper north shore suburbs Turramurra and Killara.<\/p>\n
Other notable falls were recorded in Parramatta, Crows Nest, Mosman, Hunters Hill, Bellevue Hill, Surry Hills, Bronte, Bexley, Rozelle and Milsons Point, among other areas.<\/p>\n
Falls across Greater Sydney as a whole were smaller: the value of the typical city dwelling has dropped by about $15,000 since February and remains 2 per cent higher than at this time last year.<\/p>\n
Auctioneer Clarence White, the director of auction group Menck White, attributed the recent falls to a steep decline in buyer demand, especially for higher priced homes.<\/p>\n
\u201cPeople\u2019s borrowing power has taken a huge hit because of interest rate hikes,\u201d he said. \u201cSomeone who could have bought for $2m last year often can\u2019t anymore.\u201d<\/p>\n
MORE: Investors to pay $65k a year in tax bombshell<\/a><\/p>\n A unit in this building on Morton St, Parramatta recently sold for $515,000, $5000 less than the sellers paid for it.<\/p>\n MORE: Sneaky way Albo is now killing your savings<\/a><\/p>\n Many buyers were responding by sitting on their hands and those that remained actively bidding were \u201cextremely price sensitive\u201d, fearing what they paid now may be higher than prices later this year.<\/p>\n \u201cInterest rate hikes have pushed more people into the (lower) end of the market. Once you go below $1.5m, there is still a lot more competition,\u201d Mr White said.<\/p>\n SuburbData head of research Jeremy Sheppard said many buyers were likely holding off their purchases until they got more certainty about what interest rate they would have to pay.<\/p>\n \u201cThere is still an expectation there could be more increases,\u201d he said. \u201cTypically, when there is uncertainty the most natural response is for people to wait.\u201d<\/p>\n MORE: Aus losing rentals as Albo tax raid deemed \u2018disaster\u2019<\/a><\/p>\n Just 42 per cent of the homes that went to auction in the first week of June sold. Picture: Sam Ruttyn<\/p>\n Kent Lardner, the lead analyst at research group FoundIt, said the kind of falls being seen across more affluent Sydney suburbs were typical of the start of a downturn.<\/p>\n This pattern, seen in previous market downturns, typically saw home prices fall first in higher-priced suburbs before rippling into other parts of the market.<\/p>\n \u201cThe only market still growing is the bottom 25 per cent (for pricing). More buyers are being pushed into this market because of rising interest rates,\u201d Mr Lardner said.<\/p>\n Recent tax reforms, including the replacement of a previous capital gains tax discount with an indexation system and negative gearing being restricted to new-builds, were adding extra uncertainty for buyers, Mr Lardner said.<\/p>\n Ray White chief economist Nerida Conisbee said the current downturn may soon become more widespread and not be restricted to pricier inner- and middle-ring suburbs.<\/p>\n MORE: 300k more: Albo migration boom smashes Aus<\/a><\/p>\n A unit in this Allesgrove Cres building in North Ryde sold in May for $748,300, which was below the $899,000 it traded for in 2015.<\/p>\n \u201cAs investors pull back, pressure is likely to build in cheaper, more investor-exposed markets, where year-on-year falls could ultimately be larger,\u201d Ms Conisbee said.<\/p>\n War in the Middle East was likely a contributing factor to recent falls because it pushed consumer sentiment to its lowest level ever recorded, Ms Conisbee said.<\/p>\n \u201cA small change in interest rates has a much larger dollar impact in Sydney than it does in cheaper markets, making affordability constraints bite quickly.<\/p>\n \u201cBut confidence is just as important. Sydney had already been weaker than many other markets, suggesting buyers were more cautious even at the end of last year.<\/p>\n \u201cOnce borrowing conditions tightened and consumer sentiment deteriorated, that caution became more pronounced, making Sydney one of the first markets to weaken.\u201d<\/p>\n SUBURBS WHERE PRICES ARE NOW BELOW 2025 LEVELS<\/p>\n Suburb Dundas units Rydalmere units Killara units Bexley units Rozelle units Mosman units Turramurra units McMahons Point units Crows Nest houses Hunters Hill units Bellevue Hill units Parramatta houses MORE: Jackie O\u2019s cunning $30m exit plan amid Kyle split<\/a><\/p>\n<\/p>\n
<\/p>\n
<\/p>\n
\nMedian Sale\u00a0
\n% Annual price drop
\nDrop in dollar terms<\/p>\n
\n$685,500
\n-20.8
\n$180,030<\/p>\n
\n$730,000
\n-18.4
\n$164,608<\/p>\n
\n$1,077,500
\n-16.8
\n$217,572<\/p>\n
\n$802,000
\n-15.6
\n$148,237<\/p>\n
\n$1,300,000
\n-15.3
\n$234,829<\/p>\n
\n$1,332,500
\n-15.1
\n$236,994<\/p>\n
\n$865,000
\n-13.4
\n$133,845<\/p>\n
\n$1,151,000
\n-13.1
\n$173,511<\/p>\n
\n$2,777,000
\n-12
\n$378,682<\/p>\n
\n$1,000,000
\n-11.1
\n$124,859<\/p>\n
\n$1,550,000
\n-10.9
\n$189,618<\/p>\n
\n$1,500,000
\n-10.3
\n$172,241<\/p>\n