Sydney house prices fall 7.9% but buyers face harder mortgages
Sydney's median house price dropped $143,000 since December, but rate hikes make new mortgages harder to service.
Sydney's property market is in freefall. The median house price has fallen 7.9 per cent since peaking at $1.8 million in December, dropping to $1.66 million.
The city is falling faster than any other Australian capital this year. Sydney's downturn carries a cruel paradox: the Reserve Bank's four interest rate hikes this year, which caused the price falls, have made it harder for new buyers to afford a loan.
Economists warn the slowdown could now hamper new construction. Developers facing falling prices and higher borrowing costs may delay projects, worsening the chronic housing shortage the crisis was meant to solve.
- $143,062
- Median price drop
- 7.9%
- Percentage fall since peak
- 4
- Interest rate hikes in 2025
- Dr Nicola Powell (Domain)
- Chief economist
Why it mattersFalling prices don't make homes more affordable when interest rates rise. Construction delays could worsen Sydney's supply crunch for years.
AustraliaSydney remains Australia's least affordable housing market. Slower building means fewer homes when NSW needs thousands annually to reach its 2029 target.
✓ Claims checked against the source. checked 3 h ago
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