As we move into the final quarter of 2024, Sydney’s property market remains a focal point for domestic and international buyers. The last month has seen some noteworthy trends, indicating shifts in buyer behaviour, price adjustments, and supply-demand dynamics that are critical for anyone considering entering the market. Here’s a detailed analysis of the latest market trends.
Price Trends
In August 2024, Sydney’s property prices have shown a slight uptick, with a 0.6% increase month-over-month. While modest, this growth continues the gradual recovery trend after the price corrections seen earlier this year. The median house price in Sydney now stands at approximately $1.3 million, with inner-city suburbs like Paddington, Balmain, and Surry Hills showing stronger resilience, where prices have increased by around 1% over the last month.
Apartments, on the other hand, have seen a more mixed performance. High-end apartments in the CBD and waterfront areas are still in high demand, maintaining their premium pricing. However, the broader apartment market has been relatively flat, with only a 0.2% rise in median prices. The demand for larger apartments has increased as more families seek alternatives to houses close to the city, driven by lifestyle preferences and a desire to remain close to urban amenities.
Demand and Supply Dynamics
The Sydney property market continues to experience a robust demand, particularly in the housing sector. However, supply constraints remain a significant issue. The number of new listings has not kept pace with the demand, especially in highly sought-after suburbs. This is partly due to construction delays and the cautious approach of sellers waiting for further market recovery before listing their properties.
Auction clearance rates have remained steady at around 70%, indicating healthy buyer competition. This is particularly notable in the eastern suburbs and lower North Shore, where clearance rates have been consistently high. The limited stock in these areas has led to competitive bidding, often pushing final sale prices above the reserve.
Predictions
The Sydney property market is expected to continue its steady recovery. The spring selling season traditionally brings more listings to the market, which could help alleviate some supply pressures. However, with the ongoing high demand, especially in critical suburbs, prices will likely continue their upward trajectory, albeit at a measured pace.
Interest rates remain a crucial factor to watch. The Reserve Bank of Australia’s further rate hikes could dampen buyer enthusiasm, particularly in the first-home buyer segment and the more affordable suburbs. Conversely, if rates stabilize, we could see renewed interest and potentially more aggressive price growth.
Key Takeaways for Buyers
Timing and Location: Now is a crucial time for buyers to secure property, especially in high-demand areas where prices are likely to increase further. Inner-city and waterfront locations continue to be the safest bets for capital growth.
Competition: Be prepared for competitive bidding, particularly at auctions. It’s essential to have your finances pre-approved and be ready to move quickly.
Market Monitoring: Keep an eye on interest rate movements, as these will significantly impact borrowing capacity and overall market sentiment.
Sources:
CoreLogic Property Market Update, August 2024
Sydney Morning Herald Real Estate Section, August 2024
Reserve Bank of Australia Statements, August 2024