Sydney suburbs where houses cost $2 million-plus and are getting cheaper

Sydney Morning Herald

26-04-2025

Some of Sydney's ritziest suburbs have been hit by falls in house prices over the past year, affected by the triple whammy of NSW government rezoning, continued high interest rates and uncertainty in the global economy.
Among the most affected has been exclusive Vaucluse in the eastern suburbs, where the median price slumped by 17.2 per cent in the year to March 2025 to settle at $7,322,500, according to the latest Domain House Price Report.
Among suburbs with a $2 million-plus median house price, several recorded double-digit price falls.
In Glebe in the inner west, house prices have dropped by 14.7 per cent to $2.38 million and Haberfield by 13.1 per cent to $2.7 million. On the northern beaches, Fairlight's median dropped 12 per cent to $3,125,000.
'I think a lot of people thought the government rezonings would never really happen, but they're now a reality,' said Alex Lyons of Raine & Horne Double Bay, who sells regularly in Vaucluse.
'Rose Bay is one of the nominated centres and it's going to change a lot, which obviously puts pressure on residents in Vaucluse too,' he said.
'They know that all the new development is going to mean more traffic and some of the new property could be more attractive than the older-style homes in Vaucluse that might need renovation at a time people are nervous about building costs. Then the uncertainty in the global economy is making people anxious about buying too.'
The new zoning policy encourages the development of medium-density housing in nominated town centre and train station neighbourhoods, allowing terraces, townhouses and apartment buildings between two and six storeys.