The Sydney neighbourhoods where home buyers can get the biggest discounts

Home discounting is becoming more prevalent across Sydney, new data reveals, which is putting buyers in a better negotiating position, but some areas are bucking the trend.

Domain’s Market Insights Report examined houses that sold via private treaty in the six months to May and compared the listing price with the eventual sale price. Sales were grouped by statistical area, as defined by the Australian Bureau of Statistics.

The Sydney Inner City area, which includes Surry Hills and Redfern, recorded the highest rate of discounting, with 10.7 per cent of houses transacting below the listing price. Year-on-year, discounting was up 34.4 per cent.

Next was the Pittwater area, which includes Mona Vale and Palm Beach. There, 9.9 per cent of houses were sold at a reduced price, and discounting increased 4.3 per cent year-on-year.

The Strathfield-Burwood-Ashfield area was third, with 9.6 per cent of houses transacting at a discount. Year-on-year, discounting was up 23.9 per cent.

Citywide, in the three months to May, 6.5 per cent of all houses transacted for less than the listing price, and discounting was at an eight-month-high.

Dr Nicola Powell, Domain’s chief residential economist, said the trending direction of discounting was a reliable indicator of the health of the property market.

“The vast majority of transactions in Sydney are private treaty, which is why this stat is a good litmus test for the market.”

Powell said the increase in discounting indicated the Sydney market was “slowing down” as properties languish and vendors resort to price cuts to clinch deals.

“One of the things that this discounting data really says is that buyer leverage is increasing. We know that supply is rising, we know that demand is falling, and that puts active buyers in a better position to negotiate.”

While most greater Sydney areas recorded higher rates of house discounting than May 2025, several districts recorded a sharp fall, including Canterbury, down 39 per cent; Penrith, down 23 per cent; and Liverpool, down 22.5 per cent.

Powell said plummeting discounting rates in Sydney’s more affordable regions underscored the fact that, even in a downturn, the city remained an incredibly expensive place to buy property.

“The demand that does exist is being steered towards the affordable segments. When you’ve got areas like Mount Druitt with lower discount rates than this time last year, it says a lot about affordability pressures.”

Anthony Landahl, mortgage broker and managing director of Equilibria Finance, said many of his clients were taking advantage of current ma