BresicWhitney has recorded over $250 million worth of sales across Sydney’s key lifestyle and Harbourfront markets, in the first two months of 2024.

A figure that encompasses family homes, terraces, apartments and more, it not only reflects the ongoing demand for Sydney property across varying price points, but the velocity at which transactional activity for 2024 has commenced.

BresicWhitney’s February auction clearance rate held steady at 71.2%, with the group transacting on 110 sales in February. 85% of those were sold via auction. The other 15% were sold via private treaty or through the group’s off-market platform.

Key trends emerged in February, with BresicWhitney expecting these to remain prevalent over the first half of the year.

 

Pullback in buyer buoyancy 
The leading step change from late 2023 and early 2024 activity, was the pullback in buyer buoyancy. While average groups through open homes across Sydney remained strong (16 groups per week), many were demonstrating patience in their property search.  

 

BresicWhitney Chief Executive Officer Thomas McGlynn said this had carried over into the auction environment. “While all the indicators point to healthy, robust selling conditions, there has been a modest pullback in buyer demand in recent weeks. This is important to recognise because in a market as nuanced as Sydney’s, it is often these subtle shifts that can have an impact, even if it’s just to perception. 

“As a comparison to the burst of activity we saw in the first few weeks of the year, willingness to compete in February was more subdued, particularly for homes above $3 million. We’ve witnessed this at some auctions. Registration numbers are remaining generally very strong, however some buyers are choosing not to participate and favouring more of a ‘wait and see’ approach. In a more heated market, it’s these types of buyers who would be quite aggressively competing.” 

However, the ability to connect the right buyer with the right home continues to yield results. BresicWhitney’s recent sale of 16 Caldwell Street Darlinghurst occurred in less than 48 hours after the property’s launch, for a price over $3m. 

 

Movement between $1-3m
February results reflected that Sydney property between $1 and $3 million continues to perform well, with healthy pricing results, open home numbers and the number of average bidders at auctions. 53 Palace Street, Petersham had 10 bidders at its auction and was purchased by buyers who had missed out the week prior on a property in Forest Lodge. 404/151 Military Road, Neutral Bay, sold for $1.75m in a pre-auction sale, following negotiations with three buyers, prepared to extend beyond its $1.55m guide. Another pre-auction negotiation yielded a result for 25 Polding Street, Drummoyne, which sold for $2.8m to a buyer who purchased the home within 24 hours of inspecting it. 

 

 

Mr McGlynn indicated that constraints in the total number of listings across the Inner West and Eastern Suburbs were a factor in the continued determination among buyers. An analysis by SQM Research found that just 0.3% of the total homes in these areas were currently for sale. This data, which included the Northern Beaches, revealed there had been a decrease of over 30% of property listings in these areas over the past year – a contrast to the overall 21% increase in new listings across Sydney. 

Mr. McGlynn acknowledged this contradiction. “One of the main observations in the last six months has been the significant increase in homes for sale on the market across the Inner West, East and North Shore markets. However, it’s important to remember that this is relative to wider metropolitan Sydney and that the precincts in which we operate remain some of the most competitive and sought-after places to live in the country. That’s not going to change.”

 

Architectural masterpieces drive activity.
Adding to the lure of liveability of these areas are architect-designed homes. The sale of 65 Neville Street, Marrickville – designed by David Boyle – illustrated this when it set a market record for circa $4.9m in February. 15 Vernon Street Cammeray – a mid-century home by Emil Fretze and reworked by ACME – sold for $5.75m after just two weeks on market. 

Rental recalibration. 
Mirroring activity in the sales market was a shift in pace in Sydney’s rental market. BresicWhitney’s team witnessed a stabilisation in demand for rental properties, and while overall it remains at record highs, the influx of international students that manifested itself in January became less prevalent in February. The BresicWhitney vacancy rate remains currently under 1%, well below the balanced market average of 3%.

Competition in the market continues to be driven by a duopoly of low supply and increasing rental prices; both a result of inflation – which held steady at 3.4% in January – and interest rate increases. These trends contribute to the incentivisation for investors to offload their rental properties, further reducing available supply for tenants. Data from property analytics firm Suburbtrends recorded a 30% increase in the year to January in the number of ex-rental homes listed for sale across the country, revealing the pace at which growth of mortgage repayments have outstripped rental growth, increasing respectively by approximately $447 and $202 per month.

Chantelle Collin, BresicWhitney Head of Property Management highlighted the ongoing challenges that tenants face when searching for a property. “Demand continues to outweigh supply across Sydney’s key markets, and with recent economic analysis highlighting the differential between growth in mortgage repayments compared to rental growth, we do expect to see more owners transition either partly or entirely out of investment property ownership in the next three to six months. 

“What we do take confidence in is the long-term value proposition of property ownership, and the understanding that exists among current owners about the state of the market, and the need to work collaboratively with tenants to achieve outcomes that benefit both parties.”