Buyer’s market emerges in Sydney – with certain exceptions
According to one Sydney network, while conditions on the ground are generally softening for sellers, certain areas – as well as property features – are maintaining their strength.
A quarterly report from BresicWhitney based on the network’s recent figures shows that conditions in the Sydney property market have been growing gradually more favourable towards buyers.
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While market dynamics have been in flux for some time, the network reported that the shift became more pronounced in August, following an increase in the total number of properties for sale and a moderating auction clearance rate. It became clear at that point in time that an interest rate reduction would be exceedingly unlikely until 2025, which “all but sealed the deal” for changes on the ground.
“The bullish price growth that the Sydney property market experienced in the years since COVID-19 seems to have stalled,” the network reported.
But even so, Sydney’s house price remains the most expensive of all the nation’s capitals, and the network noted the latest data still indicates that prices are trending upwards, albeit significantly more slowly than in recent years.
According to CoreLogic, Sydney recorded just 0.5 per cent growth in the September quarter, although the 12-month numbers are more robust. Price growth in the city is up 4.5 per cent over the year, according to the firm.
Thomas McGlynn, CEO of BresicWhitney, noted that though the citywide price growth accurately shows how sentiments have shifted, there are still nuances to the market conditions with certain suburbs maintaining a greater level of strength.
“The fact that the average auction clearance rate has remained stable reflects two things. That not only is there still solid demand and genuine intent from buyers, but that the suburbs within an approximate 10-kilometre radius of the CBD are continuing to outperform results across wider Sydney,” McGlynn said.
The network also noted that the inner west continues to emerge as one of Sydney’s most coveted destinations for owner-occupiers and investors alike. BresicWhitney said in the months ahead, the area is expected to remain as one of the most dynamic property markets “not only in Sydney, but across the country”, thanks in part to new connectivity improvements such as the Sydney Metro City line.
“As a key infrastructure project, it’s set to generate future demand and continue diversifying the buyer pool and resident profile in the area,” the brand predicted.
Similarly, McGlynn said that Hunters Hill and the broader Lower North Shore property markets remain very resilient, with the area’s community motivating sellers to pursue their property dreams in the area, despite the high cost of entry.
“People who choose to live here or move into the area often have family or generational ties to these suburbs, or experienced the lifestyle growing up and now want the same for their families,” he commented.
“You could say it’s lifestyle personified in these suburbs. While the volume of property sold may move slightly slower than other lifestyle markets, the buyer pool and type of home continue to be of a high calibre,” McGlynn added.
Moreover, he noted that across the city, certain property types are continuing to drive demand and experience fiercer competition.
“As the shifting conditions become more prevalent, we continue to see homes with design credentials, those that are high quality, and more classic family homes, performing very well,” McGlynn noted.