Sydney property values have fallen for seven straight months but a property insider says good news is on the horizon. Picture: NewsWire / Max Mason-Hubers
Sydney’s property market has taken a tumble in recent months but property entrepreneur John McGrath has good news for homeowners, along with tips for buyers of the best suburbs to buy into right now.
The annual McGrath Report delved into the key issues facing the property market and author John McGrath offered some reassurance despite the market “hitting a wall” this year.
Mr McGrath, the founder of McGrath Estate Agents, said history suggests the big cities are close to the end of their property value free fall.
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John McGrath is the founder of McGrath Estate Agents and is tipping off buyers on the best up-and-coming suburbs. Picture: David Swift
“This is my eighth market correction since I entered the industry more than 40 years ago,” Mr McGrath said.
“And it feels like the fastest fall in values I can remember.
“The good news for those who buy now, while others hesitate? Historically, markets have gained an average of 32 per cent over the three years following corrections like this one,” he said.
Mr McGrath explained that Australia’s last five market corrections lasted an average of 12.2 months with home prices falling by less than 8 per cent during the previous seven corrections.
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Australian Housing Market Corrections from 1982 to 2026. Analysis: McGrath Report 2027
Mr McGrath said he expected the market to improve depending on the three key factors that initially weakened Sydney’s market.
“Over-taxing plus absurdly slow approvals are killing property,” Mr McGrath said.
“Rising interest rates, the ongoing conflict in the Middle East and taxation reform announced in May’s federal budget have combined to weaken the Sydney housing market.
“I voted for this Government, so this is not politically motivated.
“I’m just sick and tired of the lack of creativity and innovation that’s slowly killing our economy,” he said.
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Mr McGrath declared Marrickville the “new Paddington” a few years ago and said buyers would have since doubled their money – twice. Picture: NCA NewsWire / Simon Bullard
The 2027 report also included Mr Mcgrath’s best value suburb picks, with Campsie crowned the number one up-and-comer for NSW.
“With a wonderful cultural mix, I’d say Campsie may well be the new Marrickville,” Mr McGrath said.
Sandringham was Mr McGrath’s silver medallist that he said was, “a small, tightly held suburb with everything going for it – but it still flies under the radar, unlike its well-known neighbour Sans Souci.”
Mr McGrath’s other top suburb picks, where purchasers could buy well before the market bounced back, were Roseville Chase, Glebe and Wamberal on The Central Coast.
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John McGrath’s top suburb picks for 2027. Source: McGrath Report 2027
Roseville Chase was singled out as any area primed for growth after flying under the radar for years.
“Tucked away next to the ever popular Castle Cove and minutes to vibrant Chatswood, this tiny area may just offer you 10 per cent more,” Mr McGrath said.
He said Glebe has everything going for it with the new fish market and extraordinary coffee spots.
“Hard to believe that this historic suburb bordering the CBD is still affordable,” Mr McGrath said. “For Empty Nesters and students alike, this little Bohemian borough is a gold mine.”
Mr McGrath said Wamberal was just “one podcast away” from Sydney, making it attractive to families and retirees.
“You’ve heard of Terrigal but many don’t know about neighbouring Wamberal … this little suburb is irresistible,” he said.
Mr McGrath’s top suburbs across regional NSW were Narooma, Coffs Harbour, Caerleon, Estella and Inverell.
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Associate director of McGrath Brighton-Le-Sands Trent Tarbey said blue chip suburbs are withstanding price falls because of a supply scarcity.
Trent Tarbey, the associate director of the group’s Brighton-Le-Sands office, said blue chip suburbs like Sandringham were proving resilient.
“The market across the whole has softened and I find blue chip suburbs like Sandringham, haven’t quite been impacted as much, and that’s mainly because of a scarcity of supply,” Mr Tarbey said.
“You’re very rarely gonna have more than five to 10 homes in the whole suburb on the market,” he said, noting that there were less than 600 homes in the suburb.
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The Strati family bought in Sandringham and said they could see why John McGrath had flagged it.
Sandringham residents Lina and Phil Strati said they could see why their suburb was flagged as an up-and-coming area.
“Everything’s at your finger tips, it’s convenient. You can get to five cafes, the beach, the park and the two sailing clubs, Ms Strati said.
“When we feel that energy and that atmosphere, you know, that was really big for us, like we really were looking for that ‘Zen’ feeling that you get from the beach side,” she said.
The Strati’s said that they knew if they could ever afford to buy in the suburb that they were going to “find a gem”.
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The soon to be redeveloped interior of the Strati’s home.
“Even the people that we purchased the property off were so beautiful,” Ms Strati said.
“They wanted to have a shot of Ouzo with us to celebrate afterwards … and they were taking our girls throughout all the rooms explaining to them like which tiles they had laid by hand themselves.
“It was really such a lovely feeling, and it just cemented our decision further that it felt right,” she said.