Newsletter

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tier are properties that are overpriced, these are typically having price reductions, having auctions pushed back or withdrawn.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.