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A recent interest rate cut has sent shockwaves through Sydney’s housing market, with new data showing prices surged by up to $200,000 in several suburbs over just three months. The Reserve Bank’s 0.25 per cent reduction in the cash rate in February reignited buyer confidence and boosted borrowing capacity across the board.
According to PropTrack’s latest Quarterly Home Value Report, property values increased in 75 per cent of Sydney suburbs since December, with many areas seeing growth between 5 and 6 per cent – the kind of rise many markets typically experience over a full year.
PropTrack economist Angus Moore is expecting more rate cuts and higher prices to come. Photo Source: Realestate.com.auWhile higher borrowing power encouraged movement in the luxury market, it’s the more affordable pockets of Sydney that saw some of the steepest price hikes. Units in Fairfield East, which previously hovered below $580,000, rose by 12.1 per cent or $70,000 in just one quarter. Other budget-friendly locations such as Ropes Crossing, Picton, and Warwick Farm also recorded gains of 3 to 5 per cent.
On the premium end, Coogee, Clovelly, Crows Nest and Cronulla saw price increases of between 5 and 6 per cent – some adding more than $200,000 in value since the start of the year.
Ray White agent Liana Power said there would be more rate cuts needed to see bigger effects in the Upper North Shore. Picture: Richard Dobson. Photo Source: Realestate.com.auREA Group senior economist Angus Moore said the February rate cut had been the “biggest amplifier” for Sydney’s price growth this quarter, and more cuts are likely to push prices even higher.
“We’re expecting further home price growth on the back of rates coming down,” Mr Moore said. “More borrowing capacity always has an impact on house prices.”
Despite the gains, affordability remains a serious challenge for Sydney buyers – particularly first home buyers. But that hasn’t stopped determined Australians like Desmond Mururi from finding a way to break into the market.
At just 22 years old, Mr Mururi, a support worker from south-west Sydney, recently secured his first property using Coposit – a game-changing platform that allows buyers to secure property off the plan with just a $10,000 deposit and pay the balance of the deposit over time while the property is being built.
Desmond Mururi, 22, has just purchased his first home in Granville with Coposit. Picture: Jonathan Ng - Source: Realestate.com.au“I know I’m fortunate to be living with my family, so I wanted to be smart and use that time to save,” he said. “It’s always been a goal of mine to buy a property, but Sydney’s prices are scary.”
Mr Mururi purchased a two-bedroom unit at Ellipse Property’s ‘East+Cowper’ development in Granville, where prices started at $550,000 – nearly $300,000 below the median unit price in Sydney.
By removing expensive amenities like pools and gyms to reduce strata fees, Ellipse has been able to offer more affordable homes. According to sales manager Puja Khanna, many first home buyers have been drawn to the development’s price point – and Coposit’s low-deposit model has played a big role in making it achievable.
“With more rate cuts expected throughout 2025 and the ability to use Coposit, it’s a great time for young buyers to enter the market,” Ms Khanna said.
Coposit | Buy in Granville with $10k and weekly payments | Off the plan SydneySuburb | Current Median | Quarterly Change | Dollar Increase |
Coogee | $3,982,892 | 5.59% | $210,967 |
Clovelly | $4,906,735 | 4.35% | $204,568 |
Crows Nest | $2,763,047 | 5.16% | $135,595 |
Cronulla | $3,234,345 | 4.86% | $149,789 |
Kurnell | $1,809,447 | 6.25% | $106,499 |
Suburb | Current Median | Quarterly Change | Dollar Increase |
Fairfield East | $648,632 | 12.1% | $70,038 |
Ropes Crossing | $641,451 | 5.4% | $32,758 |
Picton | $575,968 | 5.3% | $29,112 |
Berkeley Vale | $459,479 | 4.1% | $18,018 |
Warwick Farm | $452,448 | 3.0% | $13,277 |
As interest rate movements continue to reshape the Australian property landscape, buyers need more flexible, affordable ways to enter the market. Coposit is giving first home buyers, like Desmond Mururi, a real chance to secure their dream home without the stress of saving a full deposit up front.
Whether you’re looking to buy in Granville, Fairfield East, or one of Sydney’s luxury coastal suburbs, Coposit empowers buyers to secure new homes early and pay off their deposits over time – all while avoiding loans or interest.
Want to know more about how Coposit works? Click here to explore our process.
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