“Where were you when the Sydney property market recovered?” A question that’s as pertinent as it is metaphorical, the speed at which the Sydney property market has rebounded took many by surprise.

Activity over the second quarter (Q223) has been robust and deep, as buyers and sellers pursued their real estate plans despite rising interest rates. This furthered the divergence between the influential macroeconomic factors, and the breadth and depth of activity transpiring across Sydney.

 

Here’s what you need to know:

All property types are performing well.
April and May 2023 gave rise to a wide spread of activity across Sydney’s property market. From studio apartments at $500,000 to luxury estates up to $70 million, it is now the first time in 18 months that there has been healthy buyer appetite across all price points of Sydney property.

The growing delta between list and sale price.
The force of demand has resulted in a disparity between the Average List Price of Sydney properties, and their Average Sale Prices.

Listing volumes to drive record activity.
Sydney is poised to see more properties offered for sale in the second half of the calendar year, driven by both the expiry of fixed rate mortgages in August 2023; and the return of the seasonal Spring selling conditions.

Auctions will remain the preferred way to buy.
The associated increase in choice for buyers (due to more properties for sale) will see average registered bidders trend downwards. The auction arena however is expected to remain a strong performer.

The one factor limiting house price growth.
The conversion of the cautious optimism into material confidence was reflected in rising Sydney house prices across the quarter. If it weren’t for this one factor, BresicWhitney expects price growth could have exceeded 10%.

Change in Government incentives to quell first-home buyer activity.
While the impact of the Labor Government’s first-home buyer concession will not become clear until the second half of the calendar year, BresicWhitney expects first-home buyer activity to be slightly less prevalent in the 2023/2024 Financial Year, driven by these changes.

Rental market settles.
Some of the intense heat in the rental market lifted across the second quarter, with the environment for the second half of the calendar year poised to remain steady. Further tightening is still possible.