Sydney’s property market is becoming increasingly favourable for buyers, with the number of homes for sale climbing sharply as prices continue to soften. More properties are staying on the market for longer, giving buyers greater choice and stronger negotiating power.
More Listings, More Choice
According to the latest data from SQM Research, Sydney recorded 39,400 residential listings in July, a 6.6% increase from the previous month and 28% higher than the same time last year.
Rather than a surge of newly listed homes, much of the increase is being driven by properties that have remained unsold for longer. Older listings grew by 6.6%, while new listings increased by only 0.6%, indicating that many vendors are taking longer to secure a sale.
Across Australia, a similar pattern is emerging, with total residential listings rising 12.4% in July, suggesting buyers are taking more time before making purchasing decisions.
Falling Prices Are Slowing the Market
Sydney recorded the nation’s largest monthly decline in property values during July, with prices falling 0.6%. House prices are now below where they were a year ago, reflecting softer buyer demand and changing market conditions.
Several factors have contributed to this slowdown, including:
- Multiple interest rate increases during the year.
- Changes to federal housing tax policies affecting investors.
- Reduced buyer urgency compared to the competitive conditions seen during the property boom.
Instead of rushing to secure properties, buyers are now comparing more options and negotiating harder before committing to a purchase.
Why Listings Are Building Up
The growing number of listings is not being driven by distressed sales. Instead, homes are simply taking longer to sell.
With fewer active buyers in the market, auction clearance rates have eased, competition has reduced, and vendors are often adjusting their price expectations after longer marketing campaigns.
Well-presented homes that are realistically priced continue to attract buyers, while properties priced above current market expectations may remain on the market for extended periods and require price reductions.
Buyers Have Greater Negotiating Power
Current market conditions offer several advantages for buyers:
- More properties available to choose from.
- Less competition from other buyers.
- Increased opportunity to negotiate purchase prices.
- More time to complete due diligence before making an offer.
For many buyers, this is a welcome change from previous years when strong competition and fear of missing out often led to rushed decisions.
Premium Homes Face Greater Challenges
Not all parts of the market are moving at the same pace.
Higher-priced homes, particularly those above $2 million, are experiencing slower sales as larger deposits and higher borrowing costs limit the pool of qualified buyers.
Meanwhile, homes closer to Sydney’s median price of around $1.5 million continue to attract stronger buyer interest, with many affordable and mid-range properties changing hands more quickly than luxury homes.
What This Means for Buyers and Sellers
The Sydney property market has clearly shifted towards buyers, creating opportunities for those looking to purchase while encouraging sellers to align their expectations with today’s market conditions.
For buyers, increased supply and softer prices provide greater flexibility and negotiating power.
For sellers, realistic pricing, quality presentation, and a well-planned marketing strategy remain essential to achieving a successful sale.
While market conditions have cooled, well-priced properties continue to sell, showing that informed decisions and accurate pricing remain the key to success in today’s evolving Sydney property market.
