Daily Telegraph, Sydney

Aidan Devine

Once considered a safe haven for homebuyers priced out of the inner city, Sydney’s middle-ring “mortgage belt” suburbs are now showing signs of market fatigue. Areas like Auburn, Granville, Lidcombe, and Wentworth Point, which once offered relative affordability, have seen years of rapid price growth that defied rising interest rates. But the tide is turning. New data from Hotspotting reveals that property sales in these suburbs have been falling for five consecutive quarters, with declining demand now hinting at potential price drops.

The shift reflects a broader trend across Sydney, where high prices are forcing buyers to look elsewhere. Many are ditching the first-home dream altogether and becoming “rentvestors” — renting in the city while buying investment properties in more affordable regional markets. Suburbs in the southwest and inner west, including Bankstown, Greenacre, Newtown, and Enmore, are also seeing reduced activity, with some investors fleeing overheated conditions and poor value. A derelict two-bed terrace in Enmore recently fetched $1.35 million — a clear sign that affordability has all but disappeared.

Perth, once the nation’s standout market, is beginning to show similar symptoms. Analysts warn that speculative buying has overheated parts of the city, pushing prices past their peak. As Terry Ryder from Hotspotting notes, “These areas were once attractive because they were affordable. That’s no longer the case.” Market watchers like Jeremy Sheppard agree that a correction is inevitable after years of runaway growth. As buyers seek better value beyond the capital cities, Australia’s property landscape may be heading for a broader realignment.