Steady activity over February has reflected an increasing level of confidence among Sydney property buyers and sellers, laying the foundation for strong pre-Easter activity.

February played host to robust transaction volumes, a strengthening auction clearance rate, and a high number of new property listings across Sydney. This builds on the momentum seen over January in what is Australia’s most coveted real estate market, and reflects a collective decision from Sydneysiders to move ahead with their real estate plans.

“There is absolutely no doubt that the Sydney property market has an unmatched ability to not only weather, but bounce back, from some of the most pressing economic challenges in recent memory,” said the group’s CEO Thomas McGlynn. “February’s data is evidence of that.”

While the recent 0.25% interest rate cut – the first reduction since 2020 – has yet to materially impact borrowing power, BresicWhitney data indicates it’s had an immediate effect on decision-making and sentiment. The group sold close to 100 homes in February and listed almost 150. These are significant uplifts on January’s figures.

BresicWhitney’s 76% auction clearance rate for February was underpinned by an average of 4.29 registered bidders per auction. “This tells us that many Sydneysiders understand that we are now in a balanced marketplace that is accommodating good outcomes for both buyers and sellers,” said Mr. McGlynn. “Change is likely and it’s not quite clear yet where the pendulum will land. Many of those we’re speaking with are sharing that this is what is encouraging them to act now.”

The auction clearance rate for wider Sydney also improved in February. Consecutive weekly improvements were reported by both CoreLogic and Domain, as the mid 50% to 60% clearance rates of January increased to +70%. This is a significant improvement from the mid-to-high 50% range recorded over late 2024.

While Sydney home values recorded modest declines of -0.6% in December and -0.4% in January, February saw an upward shift, rising 0.5%, according to Proptrack. CoreLogic data also showed an improvement, with Sydney home values increasing 0.3% over February. The outlook from Westpac and AMP economists is for house prices to grow by 3% over 2025. “This demonstrates that predictions of any Sydney property market downturn of being short-lived and modest, were indeed correct,” said Mr McGlynn. “This will drive further confidence over March.”

BresicWhitney has however observed some participants retaining a cautious approach in market, likely due to the Reserve Bank’s measured stance on reducing interest rates. While several more rate cuts are expected by mid-2026, the RBA confirmed at its February meeting that it retains a ‘restrictive’ stance. Further rate cuts will depend on economic data and clear evidence that inflation has been brought under control.

Field notes:
Property sales in February reinforced the market’s depth. Standout BresicWhitney results across the lifestyle markets included the sale of 25 Le Vesinet Drive, Hunters Hill, selling under the hammer for $10,850,000. With competitive bidding, it achieved the highest auction result for the final weekend of February across Sydney. A luxury entertainer with city and harbour views, a 12-metre marina berth, and access to resort-style facilities, the result was one many to reflect the enduring appetite for luxury Sydney property.

Meanwhile, a fully rebuilt architectural home at 142a Darling Street Balmain East, sold for $7,100,000 in a pre-auction negotiation. With five bedrooms, harbour views and a commanding street presence, the property attracted interest from buyers both locally and further afield. 

There was also healthy momentum observed over February for family homes. Sales included a newly renovated double-fronted home at 4 Point Street Lilyfield ($3,800,000), a tri-level terrace at 274 Chalmers Street Redfern ($3,650,000), a four-bedroom garden home at 41a Prince Street Mosman ($4,500,000) and a two-bedroom semi-detached at 8 John Street Tempe ($1,665,000).

Sydney’s prestige market also welcomed the launch of ‘once-in-a-generation’-type homes in February. Among them is ‘Clifton’, a circa 1895 Queen Anne-style home at 2 Oswald Street Mosman, and ‘Magnolia Manor’, a circa 1927 home built to English Tudor revival style, at 13 Wanganella Street Balgowlah. Both expected to perform well following strong initial buyer interest, driven by the ongoing value proposition of historically significant homes.

Election watch:

With a Federal Election expected to be called for May, the market is likely to see a brief period of hesitation. It’s likely both buyers and sellers will factor potential policy implications into their decision-making, said BresicWhitney – a tangible reflection of closer relationship in Australia between property, politics and the economy (the BresicWhitney Quarterly, p.45).

“Sydney’s property market is shaped far more by economic fundamentals than election cycles, but history tells us that a momentary pause in decision-making is inevitable once an election is called. We anticipate a return to healthy activity levels once there’s clarity on the political front,” said Mr. McGlynn.

He added that the Easter long weekend and school holidays would also likely yield influence, but that there was upside to this. “Long weekends and school holidays do create temporary dips in transaction volumes, but they rarely shift the trajectory of the market. Therefore, buyers and sellers who stay engaged over this period can find opportunities in less crowded conditions.”

Investor and rental market insights:

While CoreLogic rental data indicates the pace of Sydney rental growth had slowed to 2.8% annually – signalling the end of the recent rental boom – an ongoing mismatch between supply and demand continues to define the rental landscape.

BresicWhitney Head of Property Management, Chantelle Collin said there had been little to no reprieve in demand for quality homes across the key lifestyle markets in February. “We continue to see that there is simply not enough quality housing for tenants in key inner-city areas. Undersupply remains the most significant challenge for the market. This is further limiting accessibility by reducing days on market for homes that are offered for lease.”

BresicWhitney has leased almost 300 homes since the start of the 2025 calendar year across varying price points. These include 84 Neerim Road Castle Cove and 33 Lower Bligh Street Northbridge ($2,800 per week), 8/6 Everard Street Hunters Hill ($720 per week), 3A Queens Place Balmain ($1,800 per week), 425 Glebe Point Road Glebe ($1,450 per week), 503/832 Elizabeth Street Waterloo ($1,300 per week) and 24/2-4 Greenknowe Avenue Elizabeth Bay ($900 per week).

The Real Estate Institute of New South Wales’ (REINSW) latest Vacancy Rate Survey revealed the overall Sydney vacancy rate fell from 2.2% in December 2024 to 2% in January 2025, driven largely by tightening conditions in the inner-city markets. LGAs such as North Sydney, Mosman, Leichhardt, and Randwick experienced the sharpest decline, with vacancy rates dropping 0.8% month-on-month to 2.2%, it showed.

Investor activity also reflects ongoing caution, with ABS lending data reporting a 4.5% drop in new investor loan commitments for the December quarter, alongside a 2.9% fall in total value. In contrast, lending to homebuyers has increased, hinting at shifting market dynamics. 

“Private investors play a fundamental role in meeting Sydney’s rental housing needs. Those owners who understand the enduring value for tenants of well-located, quality properties will see the value in long-term investment opportunities,” said Ms. Collin.