It’s the downturn that just won’t end. As 2026 nears a close, Sydney’s housing market continues to struggle: the city’s median house price was down 4.7 per cent in the September quarter alone, and values are likely slip further due to the Reserve Bank of Australia’s fifth interest rate rise this year.
Despite all this, some properties continue to defy the odds, selling well above their reserve, and even trumping their sale price when they were last bought at peak pandemic prices. Agents say factors including location, scarcity and unique features have lifted certain listings out of the Sydney quagmire, offering lessons for those hoping to buy or sell in the current market.
155 Paddington Street, Paddington NSW 2021
In Paddington, a skinny three-bedroom terrace at 155 Paddington Street sold prior to auction for $4.125 million after just 13 days on the market, comfortably exceeding the $3.58 million median for three-bedders in the suburb.
“There aren’t many properties on the market right now in such a fantastic location and with that quality of renovation,” he says. “Those factors got a lot of buyers through the door.”
331/357 Glenmore Road, Paddington NSW 2021
Also in Paddington, a well-maintained lofted studio in a warehouse conversion at 331/357 Glenmore Road recently fetched $1.3 million, benefiting from enticements including air-conditioning, a sleek kitchen with Smeg appliances, and shared amenities such as a heated pool.
The sale demonstrated the appeal of turnkey properties, Taylor says, adding that demand for these homes remains strong this month as many sellers sit on their properties while waiting for the broader market to recover.
301 Botany Street, Kingsford NSW 2032
Selling agent Alexander Phillips of Ray White (Phillips & Co.) says the four active bidding groups were all owner-occupier families looking for a permanent base close to Randwick and the eastern beaches. Enthusiastic bidding pushed the property well past its reserve of $3.2 million.
“Six months ago, it would have fetched more,” Phillips says, “but the result shows that quality properties are still selling and achieving prices above expectations.”
He thinks the market is starting to level out and that sellers and buyers are increasingly finding common ground.
“Buyers are coming back into the market, and vendors have accepted the reality of where we are, which is allowing transaction volume to increase,” he says.
Trophy properties with ocean views have been all but absent from the Sydney market this year, but those that have come up for sale have tended to perform well.
19 Wolseley Road, South Coogee NSW 2034
Further south, in Cronulla, a three-bedroom apartment at 101/66 Ewos Parade with park frontage and ocean views sold privately for $3.71 million after last trading hands for $2.41 million in 2015, when it was sold off the plan.
101/66 Ewos Parade, Cronulla NSW 2230
Selling agent Dax De Traubenberg of Abode Property says the sale price was the result of competition between two parties, both of whom were determined to secure a home moments from the beach. Multiple offers from each party pushed the price higher.
“One of the biggest things going for the property was its park-side position,” De Traubenberg adds. “Everyone in the Shire is worried about development, and the park is Crown land that will never be built out.”
De Traubenberg says while some properties may be spending longer days on the market, they can still fetch an excellent sale price when they finally sell. He points out that the Cronulla apartment had been listed for two months before the two competing parties stepped forward.
“People are still out there, able to buy,” he says. “They’re just taking their time deciding.”
Dan F. Stapleton Dan F Stapleton has written about Australian and international property for the Financial Times, the Sydney Morning Herald and others. He also covers design and architecture for publications everywhere.
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