Transactional activity in November has highlighted the number of buyers and sellers remaining engaged in the Sydney property market despite the proximity to the end of the year. Sydney property group BresicWhitney sold over $250 million of real estate across the month, with 114 sales occurring. A figure that outpaces the total number (104) sold in November 2023.

While BresicWhitney’s performance has remained consistent across Spring, including record results in October, the wider Sydney market remains symptomatic of a slowdown. Driven by the current macroeconomic conditions influencing the property market, it has by and large meant that transactions occurring across wider Sydney throughout Spring have been somewhat subdued. By comparison, it has resulted in transactions occurring more sporadically across the calendar year.

“The economic unpredictability has meant that the more traditional seasons in which Sydney used to buy and sell property are becoming increasingly irrelevant,” said Thomas McGlynn, BresicWhitney Chief Executive Officer, and newly appointed President of the Real Estate Institute of New South Wales. “Those engaged in the market are making moves when they’re financially able to, and that’s something that’s very individualised and nuanced.”

With a level of economic uncertainty and change to remain over 2025, it’s possible this will trigger a more significant shift in the Sydney property market. One that will emerge further over the upcoming holiday period, and reveal itself in 2025, according to BresicWhitney.

“By and large we won’t see the lengthy shut down across the holiday period this year that we’re accustomed to. Many buyers and sellers across the lifestyle markets who might not have been ready to make a move over Winter or Spring will look to do so now. As such we’re expecting property to be launched from late December and into early January. This may include properties that had been on the market earlier in the year, perhaps expecting to sell in those seasonal peaks. Should this occur and the properties launched over this period be well received by the market, it will reflect how Sydney is bucking these seasonal norms.”

Pricing Forecasts.

Potential reductions in Sydney house prices will further stimulate demand across 2025. A recent report from SQM Research estimated house prices to fall between -1% and -5% over 2025, and a similar reduction for Melbourne. The forecast was made under the assumption that the Reserve Bank of Australia will cut the cash rate up to 0.50 percentage points by the middle of the year.

Meanwhile, CoreLogic data showed a paring back in prices is already underway. A 0.2% reduction in monthly home values was recorded in both October and November. Annual price growth for Sydney however was still reporting an increase at 3.3%. “Following persistent price growth, it’s evident now that prices are starting to pare back. We expect more correction over 2025. This can seem daunting but it’s important to remember that those who buy and sell in the same market generally enjoy well-balanced outcomes,” Mr McGlynn added.

BresicWhitney expects next year’s Federal Election to be influential on the performance of the Sydney property market. Just last week it was revealed that the Labor Government’s ‘Help to Buy’ scheme and ‘Build to Rent’ subsidy had both passed parliament after gathering the support of The Greens.

Homes under the hammer.

BresicWhitney’s November auction results speak to the resilience of the market, with a steady monthly clearance rate at 72% – just slightly below the 75% recorded this time last year. By contrast, Domain and CoreLogic reported preliminary auction clearance rates between 60% – 70% in November. BresicWhitney estimates the adjusted industry average to be closer to 50 – 60%.

The percentage of total BresicWhitney sales sold at auction in November was higher year-on-year, at 26% versus 22%. Additionally, fewer BresicWhitney properties were passed in at auction or withdrawn from sale than last year, at 5% for November 2024 and 9% for November 2023. Mr McGlynn said that with auctions as an indicator of market confidence, the disparity between BresicWhitney’s clearance rate and that of wider Sydney demonstrated the resilience and desirability of the lifestyle markets.

Field notes.

Homes with future potential resonated with buyers in November. The auction of 6 Larose Avenue Matraville, brought forward a week, attracted 10 registered bidders and sold for $2,253,000. BresicWhitney welcomed over 70 groups through the home’s time on market with the majority of interested parties being owner-occupiers looking to renovate the home. It had been in the same family for 50 years. In Redfern, the sale of an untouched terrace home at 14 East Street also attracted healthy bidding. Six parties registered for the home with 4.5-metre-wide frontage, prior to it selling for $1,445,000.

For newer builds, buyers prioritised quality, evidenced by the $2,905,000 sale of 140B Cressey Street East Ryde in just eight days. The architectural five-bedroom home with king master wing set a new suburb record for a duplex. In Rozelle, 7 Moodie Street sold for $3,925,000. Conceived by Map Architects and built by award-winning Fairmont Homes, the home included a custom kitchen and outdoor entertaining, four bedrooms, pool and more.

Meanwhile, a semi-detached home at 121 Annandale Street Annandale that had been reimagined as a generous entertainer sold for $3,510,000. Four bidders competed for the four-bedroom property that also offered a two-level studio and garage space.

Rental Report.

Healthy activity was also seen in the rental market in November. With 100 homes leased by BresicWhitney, this represented an increase of 32% on November 2023.

Head of Property Management Chantelle Collin said, “Tenant enquiry has remained strong in November particularly for homes offering connectivity, transport, and a great lifestyle. We do however expect tenant demand to moderate a little over the Christmas and New Year break. In recent years, tenant demand has been very strong at the beginning of the year due to strong international migration.  We anticipate the start of 2025 will be a more normalised Summer peak period.”

BresicWhitney has perceived a healthy number of investors entering the market in November. Ms. Collin added that the value proposition for owners was compelling, particularly for more affordable properties – those deemed to be sub $1,000 per week – and the higher end of the market – at approximately $2,000 or more per week, noting: “These are the properties that tend to lead market demand and lease in quicker timeframes.”

She said that was expected to remain the case for 2025, adding that the pursuit of certainty was another theme. “More than ever both parties (owners and tenants) are looking to reach mutually beneficial solutions that provide certainty in a market where many other elements are uncertain.”

Stay tuned for the December instalment of the BresicWhitney Quarterly, including our key predictions for Sydney property in 2025. Out soon.