The unseasonably warm temperatures in Sydney have driven a 34% monthly uplift in potential buyers attending Sydney property inspections, according to data from leading property group BresicWhitney.

Over 5,500 buyers attended BresicWhitney open homes across the Inner City, Inner West, Eastern Suburbs, Lower North Shore and Hunters Hill in August, compared to the approximate 3,500 buyers that visited during July. This contributed to an uplift in properties sold by BresicWhitney across the month, at 101, compared to the 75 sold the month prior. BresicWhitney’s average sale price of $2.25 million also reflected an 8.2% increase on the month prior.

 

The group’s average auction clearance rate however moderated to 73% over the month, with an average of 3.5 registered bidders. This is below BresicWhitney’s annual average of 77%. At the same time, BresicWhitney listed 164 new homes in August, up on an annual average of 121 new listings per month. This reflects the increase in supply, that’s not only widening the scope for buyers, but affirms the continued economic-related trepidation among property buyers.

A trend that is seeing buyers remain firmly within their financial limits and less likely to bullishly compete for property, particularly at auctions. Domain reported the wider Sydney average auction clearance rate at 65%, 10 percentage points below the 75% recorded this time last year. CoreLogic data also revealed that new listings across Sydney climbed across Winter, to be 18% higher than the five-year average. 

 

Push and pull between buyers and sellers.
BresicWhitney Chief Executive Officer Thomas McGlynn echoed the sentiment he shared with The Australian Financial Review, earlier in the month. “While we are seeing more buyers participating in the market – and doing so ahead of the Spring peak – Sydney buyers are now less likely to extend themselves financially. That’s a real challenge at the moment and creating a disparity, mostly among owners who perhaps might have a resolute sale price in mind, or are comparing the current market feedback to what their home might have sold for in the post-COVID 2021 boom, or the more recent mini boom in Winter last year,” he said.

 

Conditions of the day paramount to navigating change.
Mr. McGlynn elaborated on why no two Sydney markets were comparable to one another. “Data will always tell an interesting story, but fundamentally what matters most is that sellers and buyers are tuned in to the conditions of the day. A large part of this is understanding where the other party is on price and their motivations to sell or buy. 

“The pace at which the Sydney property market moves means that anyone active in the current climate needs to constantly be educating themselves on where not only the challenges and opportunities lie, but the actions or improvements that can be made to their market strategy, or property that might deliver a stronger result,” Mr. McGlynn said.

 

An example of the latter was the sale of 12 Frederick Street, Sydenham by BresicWhitney at auction in August, for $1.857 million. It was the home’s second attempt at a sale in the last 12 months, following the addition of development approval for a driveway and parking. “Often it’s these seemingly small improvements or upgrades that can trigger whether buyers are genuine about a home. Anything that can add more value for buyers and keep them engaged, especially as more options come onto the market, shouldn’t be overlooked in the current environment,” said Mr. McGlynn.

 

Price flexibility is key, but pathway to growth remains.
However, despite the discounting in price seen across the city’s main lifestyle markets, there is an underlying sense of resilience that continues to define the overall price growth trajectory for Sydney property. CoreLogic recorded an increase of +0.3% in August for houses, and +0.5% for apartments. The latter marking the seventh consecutive time of apartments outpacing homes by price growth. Sydney property has now recorded a total of +5.3% growth for the year. 

Price field notes.
BresicWhitney witnessed strong pricing outcomes across a number of sales in August, including the period-style Stanmore home that sold for $4.01 million at auction. In the two decades since its build, the price more than doubled, with the 2024 BresicWhitney campaign generating interest over its initial $3 million guide, leading to an adjusted $3.5 million guide. Nearby in the Inner West, an Enmore suburb record was also set in August, with the sale of the landmark five-bedroom home at 7 Wemyss Street for $4.1 million. The highest sale in the suburb was previously set at $3.9m in 2022.

 

 

Across the Inner City, 114 Riley Street Darlinghurst sold for $3.7 million at auction, $500,000 more than its reserve as three parties bid for the four-bedroom terrace. The 12-metre-wide family home at 75 Grove Street Birchgrove sold for $7 million, $250,000 more than the guide, one of two homes to sell in Birchgrove by BresicWhitney for over $7 million in a matter days. An apartment at 161-163 Phillip Street Waterloo sold for $1.3 million prior to auction and welcomed almost 80 groups through its short time on market. All homes sold to owner occupiers, evidencing the broad-based buyer demand between the $2m – $10m price bracket. 

On the Lower North Shore, an apartment near St Leonards train station at 1 Sergeants Lane sold for close to $1.3m, after 17 bidders registered for the auction. BresicWhitney also sold property from Hunters Hill to Huntleys Cove between $1.5 million and $4.5 million in August, reflecting the ongoing pursuit of homes that offer lifestyle, convenience, and a sense of community.

Location remains key as rents recalibrate.
While macroeconomic constraints continue to stem the number of investment property owners across Sydney’s key lifestyle markets, August saw an uptick in not only potential investors curious about returning to the market, but those intent on retaining their assets for the medium-term. The latter is reflected by the 80 new homes added to BresicWhitney’s property management portfolio in August. The group leased 160 properties in the same timeframe – the second highest on record for BresicWhitney – demonstrating the consistent appetite for high-quality, well-located homes for lease. 

 

BresicWhitney Head of Property Management Chantelle Collin said, “While for some, multi-property ownership is not viable in the economic environment, we are starting to see more investors re-engaging with opportunities and deciding to stay in property investment for the next two to five years. We feel that this is partly due to a cooling of the concerns around further interest rate increases or perhaps more, so the prospect of consecutive further increases in a short timeframe, as we saw previously. The completion of key transport projects such as the Metro are also strengthening that value proposition for investors across these key areas of Sydney.”

Data from research group SQM however revealed a slight reduction in average Sydney rents, at -0.5% for the month of August. House rents declined marginally faster than apartment rents, at -2.5% and -1.9% respectively. Ms. Collin said this demonstrated a recalibration of rents for homes over the last 12-24 months, which have in the past traditionally outpaced unit growth. “The market we’re seeing now is one of adjustment. It also points to a potential reduction in the disparity of rents between standalone homes and townhouses or units. The fact that rental price growth remains at almost 5% for the last 12 months for Sydney however is very telling of the overall trajectory of Sydney’s rental market,” she concluded.