Sydney property market shifts towards buyers, with pockets of strength remaining

The Sydney property market has been gradually shifting in favour of buyers, according to a new report from real estate network BresicWhitney.

The network’s quarterly analysis indicates that market conditions have become more favourable for buyers, particularly since August, when an increase in available properties and moderating auction clearance rates coincided with the realisation that interest rate cuts were unlikely before 2025.

“The bullish price growth that the Sydney property market experienced in the years since COVID-19 seems to have stalled,” BresicWhitney reported.

However, Sydney’s house prices remain the most expensive among Australian capital cities, with CoreLogic data showing a 0.5 per cent growth in the September quarter and a 4.5 per cent increase over the past 12 months.

Thomas McGlynn, CEO of BresicWhitney, noted that while citywide price growth has slowed, certain suburbs continue to show 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,” Mr McGlynn said.

The inner west is emerging as one of Sydney’s most sought-after areas for both owner-occupiers and investors, with expectations of continued growth due to infrastructure improvements like the Sydney Metro City line.

Hunters Hill and the Lower North Shore also remain resilient markets, driven by strong community ties and lifestyle factors.

“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,” Mr McGlynn commented.

Despite the overall market softening, certain property types across Sydney continue to drive demand and experience strong competition.

As the Sydney property market adjusts to changing economic conditions, buyers may find increased opportunities, while sellers in high-demand areas or with sought-after property features may still command strong prices.