Suburbs set to recover from Sydney real estate crash first

As Sydney endures its worst real estate slump in decades, the suburbs that are set to lead the Harbour City out of its housing malaise have been revealed. By many measures, both expert and anecdotal, Sydney property falls are expected to last through the rest of this year and throughout 2027. Meaning prices may not begin to recover across the board until 2028. According to realestate.com.au’s Home Price Report for August, Sydney home prices have plummeted 4.9 per cent since their November peak. The reasons for that fall is being largely blamed on several interest rates rises and the Albanese Government’s highly controversial property tax reforms. MORE: Albo’s home battlers cop a hammering Sydney’s housing market is hitting lows not seen in decades. RELATED: NSW housing market crashes to record low To provide deeper insight and some rare good news, Shore Financial has released their half-yearly State of Sydney Report which seeks to identify the suburbs that will lead Sydney out of the real estate blues. “Sydney house prices have eased during 2026, but the more affordable end of the market is proving notably resilient,” the report notes. According to Shore Financial CEO Theo Chambers...