Sydney home prices edge up as buyers await election outcome

Sydney property prices increased marginally in April as pre-election uncertainty and concerns about US tariffs dampened market momentum.

The median dwelling price in Sydney grew by approximately 0.1 per cent last month, adding about $1000 to housing costs, according to PropTrack’s latest Home Price Index.

This modest growth stands in contrast to stronger gains earlier in the year following the Reserve Bank’s February interest rate cut.

Despite the slowdown, Sydney’s median property price reached a new high of $1,118,000, with houses now averaging $1.46 million and units $819,000.

REA Group economist Anne Flaherty attributed the subdued growth to economic uncertainty surrounding proposed US tariffs.

“When people are unsure of what’s going on they will be more hesitant,” she said.

“But Trump tariffs have also likely brought forward the timing of a rate cut and that will probably have a bigger impact on the market going forward than the economic (climate).”

The initial boost from February’s interest rate reduction appears to be waning, Flaherty noted.

Market experts suggest this trend could reverse if the Reserve Bank implements another rate cut in May, with Westpac chief economist Luci Ellis indicating such a move is virtually “locked in”.

“Should interest rates fall in May, we may see the rate of growth pick up again as borrowing capacities increase and mortgage repayments decline,” Flaherty said.

First-home buyer hesitancy may also be contributing to the slowdown, with many potential purchasers waiting until after the federal election before making decisions.

Both major political parties have promised significant support packages for first-home buyers, potentially influencing buyer behaviour.

“Whichever party is elected, the combination of increased first homebuyer incentives, lower interest rates, and supply side challenges are expected to contribute to even higher property prices in 2025,” Flaherty said.

Price movements have varied across Sydney regions since the February rate cut, with the inner west recording the strongest growth at 2.6 per cent over the three-month period.

Sydney’s inner southwest, including the St George area and Canterbury-Bankstown, saw prices rise by 2.03 per cent over the same quarter.

Other notable growth areas included Parramatta (1.87 per cent), the Central Coast (1.81 per cent) and the Sutherland Shire (1.49 per cent).

The slowest growth occurred in Ryde (0.58 per cent), the eastern suburbs (0.68 per cent) and the outer west and Blue Mountains (0.64 per cent).

Avenue Auctions director Andrew Cooley said reduced buyer activity before elections is a common occurrence.

“It’s not about any of the political parties,” he said. “It’s more that it’s a huge decision for most people and they often put off buying until they have more certainty about how things are going.”