Sydney Home Prices Drop Over 10% in Many Suburbs as Rate Hikes Cut $150,000-Plus

2 articles · Updated · realestate.com.au · Jun 13

PropTrack data showed median home values in many Sydney suburbs are now more than 10% below 2025 levels, with some areas losing over $150,000 and most declines concentrated about 15km from the CBD.
The sharpest falls came after February’s first rate hike and accelerated again after April leaks of May budget tax changes, as higher borrowing costs and uncertainty over negative gearing and capital gains rules hit demand.
Parramatta-area suburbs Rydalmere and Dundas posted unit price drops of nearly 20%, while Killara and Turramurra saw similar declines; Crows Nest houses were down 12%, or about $379,000.
Greater Sydney has held up better overall—the typical dwelling is down about $15,000 since February and still 2% above a year ago—but auction clearance was just 42% in the first week of June.
Analysts said the downturn began in affluent suburbs, where affordability bites first, and could spread into cheaper investor-heavy markets as investors retreat and weak consumer sentiment persists.