A sense of optimism has prevailed in Sydney’s property market in April. Preliminary statistics from BresicWhitney reveal a 15% increase in annual transactions, with selling timeframes, auction dynamics and pricing results across key lifestyle markets reflecting the bullish competition for stand-out homes.

BresicWhitney transacted on 100 sales in April 2024. This volume has transpired despite the aggressive cash rate tightening that occurred in 2023. Domain revealed that first-home buyers now require an average of $325,000 for a 20 per cent deposit in Sydney, compared to the $158,000 a decade ago, a factor that continues to present barriers to entry for many. While these significant economic shifts have led to varying levels of buyer demand across the first quarter, April delivered a more consistent sense of optimism and confidence.

In April, 47% of BresicWhitney sales were facilitated through networks where buyers were introduced by agents from BresicWhitney, exceeding the 44% in March. This highlights the significance of being able to connect buyers and sellers from across Sydney’s key lifestyle and Harbourside markets.

Pursuit of the premium. 
April recorded a surge in transactional activity for homes between $5 million – $10 million, underpinning the undeniable truth about Sydney real estate: buyers with capital will not only pursue homes with perceived value, but they will aggressively pursue these in on and off-market negotiations.

BresicWhitney’s sale at auction of 23 Westbrook Ave, Wahroonga for $9.1 million saw the successful buyer extend $1.1 million over the initial price guide to secure the home, in front of a crowd of over 200 people. Purchased by a family with plans for intergenerational living, the property was also the highest sale price achieved at auction on Saturday 27 April – reflecting the relative rarity of properties of this value selling at auction.

 

Other results delivered across the month evidence not only the appetite for homes of great size and scale, but those with future value-add opportunity, such as 77+79 St Johns St and 1D+1E Reuss Street, Glebe, which sold for a combined $8.7 million, and the architectural 6 Ballast Point Road, Birchgrove that transacted for $8.1 million, before it was offered to the market. 79 Louisa Road, Birchgrove sold for over $6 million, as did 11 Bareena Avenue, Wahroonga which set a new street record for the affluent locale.

Meanwhile, the Inner West recorded yet another suburb record, with the sale of 51 Cavendish Street, Stanmore, setting a record when it sold for $4.65 million after just four (4) days on market. The successful buyers had conducted an inspection of the property with BresicWhitney prior to it being offered to the wider market. This followed BresicWhitney’s setting of a new Marrickville record in February when it sold the architect-designed ‘Coiled House’ for $4.9 million.

 

 

Peaks and troughs in the auction arena. 
The bidding was a little less bullish for Sydney property under $5 million at auctions in April, with BresicWhitney data charting wide variables between registered parties, from two up to 10.   
“We’re observing healthy competition among buyers at the moment who are pursuing property up to $5 million, especially homes within in the $2-$3 million range,” remarked BresicWhitney CEO, Thomas McGlynn. 

“We’re seeing many buyers conflicted about adhering strictly to their budgets, or overextending themselves, even very modestly at auctions, in the hope of that one last, winning bid. While there are of course exceptions to this and buyer considerations are extremely nuanced, the prospect of rate cuts now occurring closer to or within the 2025 Calendar Year, will mean that caution and patience continue to set the tone for many buyers.” 

 

BresicWhitney transacted on 54 sales at auction across April, resulting in an average clearance rate of 76%. Homes to have sold competitively under the hammer in April include classic Inner-City terraces, 8 Arundel Street, Forest Lodge and 355 Riley Street, Surry Hills. The auction of 355 Riley St attracted seven (7) registrations on auction day, with bidding starting at $3 million, before escalating in $50,000 increments and resulting in a final selling price of $3.7 million.  

 

A place to call home. 
A divergence in the growth patterns of house and apartment prices was also revealed in April. Data from Domain’s House Price Report charted a 12.8% increase in Sydney house prices since December 2022, to a $1.6 million threshold. Sustained growth had been delivered over each quarter in the time period. While the persistent growth has accelerated annual gains to a two-year high, quarterly gains have marginally eased compared to the previous quarter. Houses now command a 68.4% price premium over apartments.
 
However, with apartments offering relative affordability, BresicWhitney expects this sector of the market to experience consistent demand and activity across the remainder of the 2024 Calendar Year. The year so far has seen BresicWhitney transact on 163 apartments, up 20.8% on this time last year. This can be attributed to an increasing number of investors choosing to exit the market as a result of the turbulent cash rate.  

 

Call to action for the rental market. 
Despite indications that a stabilisation in the rental market may be underway, perceived in February and March, the demand for rental properties continued to rise in April, with no meaningful indications of an immediate slowdown. BresicWhitney observed an increase in rental listings over the month, averaging 75 active listings online each week, in comparison to the average of 50, in recent months. Domain data also revealed the Sydney vacancy rate persists at a low of 0.8%. Throughout April, BresicWhitney leased 96 properties with an average rent of $940, and 11 days on the market.  

While it’s been widely acknowledged that the rental market requires attention and collaboration from industry and Government stakeholders, the recent unveiling of the Property Management Action Plan by the Real Estate Institute of Australia, has highlighted the intention to continue progressing these improvements. The REIA action plan aims to address several pressing challenges through a series of targeted initiatives, across innovation, investments, and immigration. It also places significant emphasis on the health and wellbeing of Property Managers, and their integral role in achieving sustainable, mutually beneficial outcomes for tenants and property owners and investors.  

 

BresicWhitney Head of Property Management, Chantelle Collin, emphasised the critical need for collaboration and that the action plan is a positive step towards holistic industry advancement. 
“It is imperative for us to work collectively to elevate the experiences and realities for tenants, investors, and all those working in the industry. By sharing our insights and tactics, we are better equipped to tackle these ongoing challenges – ones that we all recognise. This united effort is key to enhancing our service quality and achieving positive outcomes in the rental market.”