Sydney’s property market is entering spring with buyers and sellers facing a period of uncertainty, as concerns about another interest rate rise continue to affect confidence.
After three recent interest rate rises, buyer activity has slowed across much of the market. At the same time, possible changes to negative gearing, capital gains tax (CGT) and SMSF property purchases are adding further uncertainty.
Property experts say interest rates remain one of the biggest factors influencing buyer confidence and market activity this spring.
Buyers Remain Cautious
HighSpec Properties Buyer’s Agents Director Amanda Gould said many properties are attracting only one or two serious buyers, particularly at higher price points.
However, more affordable properties are still attracting stronger demand.
Good properties priced between $800,000 and $950,000 are continuing to attract buyers, while properties under $1 million are generally seeing more activity.
This trend is also reflected in recent buyer enquiry data, with several more affordable Sydney suburbs recording strong annual growth in demand.
Affordable Suburbs See Stronger Demand
According to realestate.com.au data, Sydney’s west and other more affordable areas are recording some of the strongest increases in buyer enquiries.
For houses, the suburbs with the largest annual growth in key enquiries per listing include:
| Rank | Suburb | Property Type | Annual Growth |
|---|---|---|---|
| 1 | Silverwater | House | 68% |
| 2 | Glen Alpine | House | 64% |
| 3 | Harris Park | House | 58% |
| 4 | Chippendale | House | 54% |
| 5 | Bowen Mountain | House | 51% |
Units are also seeing strong demand in several suburbs:
| Rank | Suburb | Property Type | Annual Growth |
|---|---|---|---|
| 1 | Kincumber | Unit | 130% |
| 2 | Wyoming | Unit | 91% |
| 3 | Concord West | Unit | 73% |
| 4 | Bonnyrigg | Unit | 68% |
| 5 | Cabramatta | Unit | 63% |
REA Group Senior Economic Analyst Megan Lieu said affordability is a major reason buyers are looking towards these areas.
With housing affordability in NSW remaining challenging, buyers are increasingly considering suburbs where they can find a property within their budget.
Some buyers are also choosing units instead of houses when the price difference is significant. For example, Concord West has a median house value of around $2.7 million, compared with around $750,000 for units.
Fewer Sellers Are Coming to Market
While spring is traditionally one of Sydney’s busiest selling periods, this year has started differently.
Auctioneer Clarence White of Menck White Auctions said auction volumes are significantly lower than in previous years, with some vendors choosing to postpone or withdraw their properties.
Agents are also having to negotiate more heavily to reach agreements between buyers and sellers.
The uncertainty around interest rates is one of the main reasons vendors remain cautious.
Sellers Need to Adjust Their Expectations
For sellers, the current market means pricing a property correctly is more important than ever.
Airlie McConnell and Jonathan Rush are currently selling their home in Roseville. Ms McConnell said the family had to reduce their price considerably due to the current market conditions.
After adjusting the price, the property began attracting more buyers and inspections.
Their experience highlights an important point for sellers: pricing a property according to current market conditions can help attract more buyers.
Ray White Upper North Shore agent Jessica Cao also noted that spring has not brought the usual increase in property listings.
Instead, stock levels have remained similar to winter, giving buyers fewer properties to choose from.
What Could Happen Next?
Interest rates are expected to remain an important influence on Sydney’s property market in the months ahead.
If rates rise again, buyer confidence could weaken further. On the other hand, if rates remain stable and eventually begin to fall, market activity could improve.
For now, experts expect the current market conditions to continue through the remainder of the year, with the possibility of these conditions extending into next year.
What This Means for Buyers and Sellers
For buyers, the current market may provide opportunities in suburbs where prices are more affordable and competition remains manageable.
For sellers, realistic pricing and understanding the competition are becoming increasingly important.
The spring market may not be as active as previous years, but buyers are still out there. Properties that are well presented and priced appropriately can continue to attract attention.
As Sydney moves through spring, interest rates, affordability and buyer confidence will remain key factors to watch.
