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As the winter school holidays come to a close it’s a great time to reflect on the past quarter and what’s ahead for the Sydney property market.

Since our last update in April, when conditions were favouring buyers, we’ve seen a slight shift in conditions. Market activity has increased, buyer confidence seems to be returning, and prices have seen a modest lift. According to SQM Research, this week’s auction clearance rate was 55.1% — the highest so far this year.

It’s been a busy second quarter. Inflation has now returned to the RBA’s target range of 2%–2.5%, financial markets are reaching all-time highs, and new density regulations across Sydney have been making headlines. 

There’s more confidence across the market, with fair and measured outcomes being achieved. That said, premium results are being reserved for turnkey homes, well-presented apartments, and rare renovation or knockdown opportunities on larger blocks or with exceptional views.

Buyers are engaged but strategic in their approach to purchasing. Timing, pricing, and presentation need to align to secure a successful result. Often, there’s still a gap between buyer perception of value and vendor expectations — and that’s where we come in. As buyers agents, our role is to identify the genuine opportunities and act strategically when the right one presents itself.

4x Recent Purchases

Low to Mid Rise Housing Policy: What’s Really Happening on the Ground
We’re now seeing the first sales of potential development sites under the new Low to Mid Rise (LMR) Housing policy — particularly in premium areas like the Lower North Shore and Eastern Suburbs. In many of these sales, groups of neighbours are joining together to sell their properties “in one line” to developers, often securing prices well above individual market value.

Most of these deals are secured through option agreements, which reduce risk for the developer. Sometimes this includes the early release of deposit — but not always. In many cases, settlements are delayed by 2 to 3 years, meaning homeowners won’t see their funds until the developer clears key hurdles.

It’s also important to note that the policy is a state-led mandate, not a local council one. This distinction matters — because if local councils don’t support the proposal, developers may need to escalate to the Land & Environment Court, adding both time and cost to their approval process.

If you’d like to check if your area falls within one of these hotspots, click on the image below which will take you to the Government’s interactive LMR map:

If you want to have a chat about the current market or your property plans get in contact with us today.

With only a few weeks before we head into the Easter break it’s a good time to look back on the first 3 months of the year and what’s to come in the Sydney property market. Since our last update in November we have seen the market stabilise into being a buyers market. Clearance rates this week were 48.1% according to SQM Research highlighting the shift.

We have had an action packed first quarter with the first full rate cut in 4 years bringing renewed positivity into the market, an impending election on May 3rd which is causing some uncertainty, new increased density regulations across Sydney which are very much in a stage of let’s wait and see and a 2 year ban on all foreign purchases being implemented.

This influx of change is certainly bringing some patchy results across the marketplace. We are seeing that turnkey homes/apartments & rare knockdown/renovation opportunities that offer larger block size or impressive views selling strongly. However properties that are needing minor renovations, have basic features or are lacking in size/location are generating less interest.

The depth of the buyer pool is the biggest shift, numbers at open homes are higher than normal but there are on average only 1.5 real buyers for each property. This is highlighted by the low clearance rates with the majority of properties selling off market or prior to auction. 

4x Recent Purchases

Low to Mid Rise Housing Policy Changes to Unlock More Housing
From 28th February, there were wide scale changes to the low/mid rise housing regulations across hotspots in Sydney. If you live within 400m or 800m of a town centre and are located in either R2 or R3 zones there will now be an ability to build up to either 3x levels or 6x levels in height with an increase in floorspace ratio.

I don’t expect this to have an immediate affect on the market. After catching up with a developer client last week, he mentioned that they have been inundated by these new development opportunities. The only caveat is a nearly 40% divide in the price the owners are seeking and the price that developers can pay to make the site viable. 

If you’d like to view the LMR Interactive Map to see if you’re in located in one of these hotspots click on the link: https://rb.gy/gs02t1

With the election upcoming on May 3rd, it tends to put a slight pause on property decisions. But as you can see above in the graphic (provided by Domain) the election alone doesn’t slow the overall volume of sales. Purchasing is primarily influenced by personal circumstances and broader economic conditions as opposed to the political calendar.

If you want to have a chat about the current market or your property plans get in contact with us today.

With only a month left before Christmas it’s a good time to look back on the past few months and what’s to come in the Sydney property market. Since our last update in July we have seen the market shift to being a buyers market. Clearance rates this week are sitting around 42% according to SQM Research highlighting the shift.

Days on market have increased as vendors are needing to be patient or lower their expectations when selling. It provides an incredible opportunity for buyers to take advantage of the subdued buying conditions over the coming months.

In all areas of Sydney, we are seeing that the market is split up into 2x tiers.

There’s premium A grade properties, that are priced fairly which have demand and are selling strongly. There is limited supply in this tier of property.

Investor grade stock or properties that have flaws make up the majority of the supply in the market. These properties can also be priced too high on occasion. The reason for these types of homes making up the majority of the market are: building costs/timeframes, interest rates, cost of living

4x Recent Purchases

In 2025, expect the property market to start early in January with a large number of buyers and sellers ready to launch in the new year. Scheduling wise it will be a disruptive first half of the year with Easter in April and the Federal Election occuring around May. Historically these are periods of low volume & sales.

Our advice for those planning on buying or selling is to be active in the early part of 2025 to avoid having their property plans delayed until the mid point of the year.

Most economists are forecasting the first rate cut in February 2025. With Australia’s big 4 banks predicting up to 4x rate cuts next year, this would be a material change in borrowing capacity for homebuyers and will further fuel property prices for 2025.

If you want to have a chat about the current market or your property plans get in contact with us today.

With only a month left before Spring hits it’s a good time to look back on the year so far and what’s to come in the Sydney property market. Since May we have seen the market level out to being more of an even or calm marketplace.

In large part there is an element of caution amongst buyers which means they are less willing to compromise, than they have been in previous years.

Vendors have needed to be more realistic than in years past to sell their property. I put this down to a few factors: buyer sentiment changing, the majority of people buying or selling for lifestyle reasons, and interest rates. Of course, there are outlier properties where this isn’t the case and they sell strongly. Overall current market conditions present a great opportunity to buy.

In our core area of 15km around the CBD we are seeing that the market is split up into 2x tiers.

There’s premium A grade properties, that are priced fairly which have very strong demand and are selling either at auction or for an offer above the guide prior to auction. There is limited supply in this tier of property.

Investor-grade stock or properties that need renovating make up the majority of the supply in the market. These properties can also be priced too high on occasion. The reason for these types of homes making up the majority of the market are timeframes of development plans, interest rates, building costs or the property having some downsides.

4x Recent Purchases – 3x Off-Market, 1x Pre-Auction

On average there are only 2 genuine buyers per property

There is a growing trend now where numbers at open homes are strong, yet when it comes to negotiating on that property only 1 – 2 buyers show real interest. It’s evident across markets in Sydney, there are some exceptions to this but it just shows how the market is levelling out.

I experienced this first hand for a past client who sold in Leichhardt, there were a number of contracts out in the first week and multiple interested parties. Yet in the end there was only 1 genuine buyer, which they ended up selling to. The benefit for buyers in this environment is less FOMO, more time for decision making and power in negotiations with vendors.

Most economists are forecasting rate cuts by early to mid-2025. There was a recent survey of 29 economists and 24 expect the cash rate to be lower by mid-next year.

By 2026, they forecast the cash rate will be at 3.50% by the end of 2026. This is 0.85% change from today, this would result in circa 8.5% increase in borrowing capacity. Further fuelling property price increases for the years to come.

For the remainder of 2024, I foresee levelling out in prices and stable market conditions being prevalent, if cash rate cuts come in Q4 this year this could lead to a strong finish to the year.

If you want to have a chat about the current market or your property plans get in contact with us today.

The beginning of 2024 has been nothing short of frantic, it’s a good time to reflect on what a first quarter it has been. We had a record amount of properties hit the market at one point, yet there is still element of caution in the marketplace. I put that down to the types of properties that are currently on the market.

In our core area of 15km around the CBD we are seeing that the market is split up into 3x tiers.

There’s premium A grade properties, that are priced fairly which have very strong demand and are selling either at auction or for an offer above the guide prior to auction. There is limited supply in this tier of property.

Investor grade stock or properties that need renovating make up the majority of the supply in the market. This is down to people being uncertain with the timeframes of development plans, building costs or the property having some downsides.

The last tier are properties that are overpriced, these are typically having price reductions, having auctions pushed back or withdrawn. There is an above average supply of this type of property.

Recent Purchases

Quarter of All Property Transactions Were Paid in Cash.

There was a fascinating article recently which detailed that last year over a quarter of all property transactions were paid for in cash. This figure was a surprise to many including myself, at a guess I would’ve put it at maybe 10 – 15%. It just shows that there is a large majority of the market that is resilient to higher rates and that the demand will remain strong. As expected the areas of highest amount of cash purchases were in Lower North Shore – Mosman, Cremorne & St Leonards and in the East – Bellevue Hill, Darling Point and Bondi Beach.

The RBA has largely been out of the headlines so far this year as their meeting schedule has adjusted due to the new regime and they have kept rates on hold so far this year. In our last newsletter, we mentioned the earlier start to the year with stock levels and this certainly eventuated for the majority of Sydney.

The main indicator to keep an eye on is unemployment levels if they are tracking higher towards 4.5% that will put pressure on mortgage repayments and may cause an increase in stock levels.

For the remainder of the 2024 I foresee levelling out in prices and stable market conditions being prevalent, if cash rate cuts come in Q3 next year this could lead to a strong finish next year. 

If you want to have a chat about the current market or your property plans get in contact with us today.

As we wind down towards the end of 2023, it’s a good time to reflect on what a year it has been. We’ve purchased 21 properties for our clients, an average search time of 8 weeks and 70% of those purchases were off or premarket.

It’s been an interesting year with the market becoming more segmented based on the type of property and area dynamics. There have been some strong prices, particularly for properties that have unique attributes but also some homes that have sold at good value prices from a buyer’s perspective. Overall, buyers have been active due to a few key factors: they’ve been more comfortable with the interest rate environment, stock levels have remained low and record migration has kept the market buoyant with a 12% increase in prices seen this year.

Thank you to all our amazing clients, and agents who have been great to work with and those who continually recommend us it’s greatly appreciated.

Highlight Purchases

So far in 2023, property prices have increased 8.8% and stock levels are 15% lower than this time last year which is a sign of the strength of the Sydney property market.

For those who are following economists’ predictions, I have included a table above which shows that not one of the economists was correct in their forecasts of the property market. It’s always a good reminder to treat the commentary that you may read with a grain of salt.

The main indicator to keep an eye on is unemployment levels if they are tracking higher towards 4.5% that will put pressure on mortgage repayments and may cause an increase in stock levels.

For the remainder of the year, I foresee stock levels increasing slightly but this being absorbed by homebuyers. We will also see build costs start to taper off as supply chain constraints loosen and more property developments get the green light with Labor’s goal of increasing density in 2024.

If you want to have a chat with a top-rated buyers agent about market trends or you need help finding the right property, get in contact with us today.

The biggest eye-opener for me initially is just the number of people attending open homes whether it’s your entry-level homes right up to the prestige sector, how long will this continue?

This shift in mindset I feel is down to a few leading factors, there is a shortage of available properties, Chinese universities have decided to no longer recognise foreign universities online-only degrees bringing more students to Sydney, over 200,000 ex-pats are expected to return in the next 12 months and the majority of buyers becoming more comfortable with the interest rate environment.

What we have seen so far is properties are selling on average within the 5% range of the price guide. There are, of course, outlier sales that exceed this range but the resilience in pricing is down to a lack of available properties so far. The RBA has signalled that the cash rate will be increasing each month until May. Can we believe the RBA’s messaging though? Accuracy doesn’t seem to be their forte.

The main indicator to keep an eye on is stock levels they are tracking lower when compared to previous years. If the volume of listings stays low then house prices will remain resilient as demand outweighs supply. This will also highlight one of the benefits of using a buyers agent, access to off/pre-market properties since the available properties are limited.

Overall, the property market would need to decline a further 19.5% to erase the gains seen during the pandemic (as seen in the above graphic). This is a great demonstration that if you are considering your options you will be buying at a significant discount to this time last year. 

I have included a table of economists’ predictions from 2022 which shows that not one of them was correct in their forecasts of the property market. It’s always a good reminder to treat the commentary that you may read with a grain of salt.

Despite the numerous challenges ahead, we see plenty of opportunities in the market for property buyers who are willing to be flexible with their briefs. The key to success isn’t about timing the market but finding the right property for your long-term goals.

If you want to have a chat about the current market or your property plans get in contact with our experienced buyers agents today.

From there we have a four-step process:

1.  Inspect the property -looking at the condition, finishes, location and respect to determine its quality.
2.  Ascertain the likely sales price -researching the agent’s track record, using our knowledge of comparable sales and gauging the vendor expectations/motivations
3.  Assist with due diligence -organising or liaising with building & pest/strata inspectors and letting the client know of key findings
4.  Tailor a negotiation strategy -once we have all the information at hand we decide on a strategy based on the client’s budget and motivations for the particular property. This can include auction bidding, negotiating prior to the auction or a private treaty – all backed by our adept negotiation skills.
   
   This year provides an opportunity to buy property in a significantly cooler environment: The uncertainty is however causing many people to pause their searches. An interesting case in human psychology, the herd mentality is alive within us. If you want to break away from the herd and leverage the current uncertainty to purchase property in much more favourable conditions contact us today.

Through my extensive understanding of market trends, buyers/clients are taking exception to properties that have flaws or work required with construction costs having gone up over 30% this year alone. However, if it’s a property that requires little to no work in a sought-after area these properties still have great competition and are selling well. A good example of this was an auction I was bidding on for a client in Northbridge, the asking price was $5.25m – $5.75m and I advised the client to pay up to $5.5m. The property ended up selling for just over $6m at an auction with most of the street in attendance.

Another factor that plays into the buyer/seller motivations is expectations of both sides with owners seemingly oblivious in many cases to current market conditions & buyers thinking 2-3 months in advance. This has caused a divide between what a property is worth and is a big cause of the confusion with price guides being dropped quite regularly in most cases I put it down to expectations of owners. My advice to clients currently the majority of the time is let’s wait and let the property campaign play out or keep that off-market property on the monitor list, if someone comes in loves the property and we miss out so be it. It’s more important to buy the property for the lowest price and in large part this is being driven by owners being more realistic.

Prestige sector and low stock: the buyer pool outweighs owners willing to sell which is keeping prices strong.

For the prestige sector, what I am seeing is a low stock which means that the buyer pool outweighs owners willing to sell which is keeping prices strong. There is also the case of properties sitting on the market for much longer than usual as owners are unwilling to budge and buyers standing their ground. This is a general statement, but this market is less rate sensitive and is more supply/demand driven. As ex-pats continue to return home this market just seems to be moving from strength to strength.

Attached is a great article by Chief Economist Dr Shane Oliver who lays the foundation for why Australia should be able to sit at around 1.5% economic growth in the next year. I have also included some interesting charts from the Head of Research at CoreLogic, Tim Lawless. Interest rate correlation to declining housing values chart has a valuable finding which is that the largest property declines month by month were seen around May as the first-rate hike occurred. Since then, the rate of decline has decelerated despite ongoing rate hikes. This could be down to buyers becoming more comfortable with their predicament. Price declines needed to reset gains of recent years chart highlights the percentage decrease in house values still needed to erase all the gains that were made in the last two years.

The Buyer’s Mindset.

The buyer mindset has shifted from FOMO (fear of missing out) to now FOOP (fear of overpaying). After the increases of 2021 buyers are now much pickier about their ideal property but this shift also requires patience. In the digital age which is all about instant gratification and fast results, it can be quite an adjustment. The same can be said with sellers as a cautious approach is being taken, it makes sense if you are living in a great house the motivation isn’t as high when the market is uncertain.

This Spring, there have been mixed messages about if there is going to be an influx of stock, with the majority of sellers seeming to want to wait for more certainty particularly around interest rates before listing their property. This is causing properties in certain price points to remain strong as demand far outweighs supply, especially in premium locations.

As we head towards the end of the year there are more people with pre-approvals in place and numbers at open homes are increasing. But the new listings in what is typically a popular time to buy and sell property are lagging. The real opportunities I can see out there are for people who are willing to be patient but still open-minded with their brief. The key to success is about finding a property that is the perfect mix of compromise.

This year has many more twists and turns to come yet it provides an opportunity to buy property in a significantly cooler environment. If you need help finding the right property, are looking for access to off/pre-market properties, want expert guidance from top-rated buyers agents and are keen to purchase property for the lowest possible price, start your property search with us now.

Why you should buy now

The certainty that was in the market last year has dissipated with many buyers factoring in inflation, the upcoming election and rising interest rates to their purchasing decisions. The herd mentality that once caused buyers to jump over one another to buy property has now moved to the fear of overpaying.

However, we see this as a great opportunity to buy more in isolation in my opinion rather than in competition. Our clients have been able to purchase properties at great prices. For example, we were able to secure a townhouse in North Bondi for $2.91M when the vendor was seeking $3M. In this same complex, the first townhouse sold for $3.6M only last October.

Our team can help buyers leverage the shift in prices because we know the market intimately and can negotiate effectively. There is plenty of opportunity to save money if you’re willing to step away from the crowds and buy in isolation versus buying among the competition.

Development Offerings

We can provide a full solution to developers/investors/families who are looking for the perfect development or knockdown rebuild site. Firstly by finding the right off-market opportunity, we then determine the feasibility of projects and assist with the future value sales they can expect. All the way through to introducing builders, and contractors if need be. Our aim is to make the process as simple as possible so that it’s a seamless experience.

Our clients have been able to purchase development sites that not only fit their needs but have factored in contingencies such as building costs, and weather delays. For example, we were able to secure an off-market duplex site in Balgowlah that was DA Approved with an extended settlement. This meant that my client could start the build as soon as it settled and not go through the stress & hassle of waiting for the approval process which is rife with delays. This is why it is vital to engage with a top-rated buyers agent.

How Uncertainty Affects the Property Market

With a perfect storm comprised of the war in Ukraine, concern over rising interest rates, and the impending election, the current market conditions are suffering from uncertainty, making for optimal buying conditions. If you are confident in your finances, as well as in the current situation, it’s my opinion that this is the best time to buy. 

Buy when others are fearful – according to market watchers much smarter than I am. Last year was a race among buyers to purchase property – FOMO led to the property market reaching overdrive. Paying well over market value, buyers were jumping over each other to secure a property. 

This year provides an opportunity to buy property in a significantly cooler environment: The news is causing people to pause their searches. An interesting case in human psychology, the herd mentality is alive within us. Contact us if you want to break away from the herd and leverage the uncertainty to purchase property at a lower price than that of just a year ago.

Revised Price Guides & Properties Passing at Auction

The commonly revised price guides, as well as the number of properties passing at auction, are strong indicators of the current divide between seller and buyer expectations. While the sellers think their price should reflect the conditions of August 2021, buyers are jumping ahead to six weeks from today. 

The current market is a mix of high-quality, A-grade properties selling well and less desirable properties offering a more even playing field. The market has returned to how it should be: Buyers being picky about purchasing their largest financial asset. 

We can help you or someone you know secure a property under favourable buying conditions. Whether you’re interested in a home, property for development, an investment, or a vendor advisory, we can help you find an ideal purchase. As an experienced local buyers agent, we have an in-depth understanding of market trends, ensuring that we provide you with valuable insights to support your decision-making. Contact us today, and we’ll take you step-by-step through the journey of purchasing your largest financial asset.