Sydney’s prestigious suburbs bounce back

Sydney’s most prestigious postcodes are back in Australia’s property growth spotlight, with new figures from Ray White Group confirming a remarkable resurgence in high-end markets following 2025’s interest rate cuts. According to Ray White Chief Economist Nerida Conisbee, suburbs like Manly and Eastern Suburbs North broke back into the nation’s top 10 for median house price gains, a list otherwise dominated for the second year running by prosperous pockets of Perth.

Sydney Premiums Return

“For the first time since 2023, premium Sydney suburbs have re-entered the top national growth rankings,” Ms Conisbee said, noting Manly’s $176,000 and Eastern Suburbs North’s $158,000 median price growth over the past year. Manly now boasts a median house price of $3.87 million. “High-end buyers are flooding into established prestige markets, with the latest rate cuts reinvigorating demand,” she said.

This comeback signals a notable shift from 2024, when Sydney was entirely absent from national top growth suburbs. However, Ms Conisbee cautioned that, unlike previous booms, “Sydney’s growth is now highly selective, confined to the most established and highest-value areas, and not yet widespread across more affordable premium locations”.

Perth Retains Top Position

Western Australia’s dominance remains unchallenged, with Cottesloe-Claremont recording the nation’s largest annual median house price gain at $275,000 – though down from last year’s “extraordinary” $331,000 surge. South Perth, Perth City, Melville and Fremantle also secured top 10 spots, highlighting ongoing “resources sector activity and strong interstate migration,” according to Ms Conisbee. “While Cottesloe’s growth has moderated from 2024’s extremes, recent months have seen a slight re-acceleration as a result of interest rate cuts,” she said.

Brisbane Holds Steady

Brisbane maintains a strong presence, with Inner North, Inner East, and Inner West suburbs all featuring in the top 10. Each posted hefty median gains between $155,000 and $164,000, sustaining the Queensland capital’s upward momentum seen over the past two years.

National Growth Moderates

Though the leaders’ gains are substantial, Ms Conisbee confirmed the broader property market is settling following the frenetic growth of earlier boom years. “The 2025 data shows some moderation, with fewer suburbs achieving the record gains seen last year. Annual growth among the leaders now ranges from $155,000 up to $275,000, indicating less volatility,” she said. Nationally, median house prices climbed sharply following August’s 0.25 per cent interest rate cut, with home values rising 1.3 per cent in just a month and the national median hitting $961,000 in August 2025.

Signals for the Year Ahead

For observers and investors, Sydney’s selective but significant resurgence may foreshadow a broader revival in premium property markets across mainland capitals if interest rates continue their expected downward trajectory. As Ms Conisbee put it, “The return of Sydney premium buyers signals renewed confidence, but widespread gains will likely depend on further easing by the RBA and continued population growth.”