Core Insights - Sydney's affluent suburbs are experiencing significant declines in property prices, with the highest drop reaching 17.2% due to government planning adjustments, sustained high interest rates, and global economic instability [1][4]. Property Price Changes - Vaucluse's median property price decreased by 17.2%, now at AUD 7.32 million [2] - Glebe's median price fell by 14.7% to AUD 2.38 million [2] - Haberfield's median price dropped by 13.1% to AUD 2.7 million [2] - Fairlight's median price decreased by 12% to AUD 3.125 million [2] - Other suburbs with notable declines include Neutral Bay (-11.0%), Blakehurst (-7.3%), and Collaroy Plateau (-7.2%) [2]. Government Policy Impact - The New South Wales government is encouraging medium-density housing development in designated centers and near train stations, allowing for the construction of 2 to 6-story buildings [4]. - The government’s zoning policy is causing pressure on residents in affluent areas like Vaucluse, as new developments may be more attractive than older homes needing renovations [2][4]. Economic Factors - High interest rates have a more pronounced effect on affluent areas compared to economically suitable areas, leading to increased competition for more affordable properties [4]. - The sensitivity of property prices in affluent areas to interest rate changes is highlighted, as wealthier individuals may seek better returns elsewhere when cash rates are high [4].