Has Sydney Become a Better Market for Buyers?

I spent last Saturday doing what I do each Saturday: inspecting properties and attending auctions in the Inner West and Lower North Shore of Sydney.

The question I'm hearing from buyers at the moment is whether the Sydney market is finally slowing down.

I've overheard conversations at inspections between agents and local neighbours who were considering selling, with some agents openly suggesting they may be better off waiting rather than listing immediately. I've also read countless emails from agents trying to reassure their databases that all is well, whilst simultaneously acknowledging that conditions have changed significantly since April.

I've also heard people saying that "the market has tanked".

That's an overstatement.

This is Sydney. Property is practically our national sport. Markets here can soften, stall and even decline, but they rarely collapse overnight.

That said, there are certainly signs that some sectors of the market are under pressure and, in some cases, prices do appear to be easing.

The reality is that Sydney remains Sydney. Good family homes in desirable locations are still attracting buyers and still selling. However, there is a noticeable change in the air. Competition has eased, buyers are taking more time to make decisions and the frantic urgency that dominated the market over the past few years has dissipated.

What I'm Seeing at Sydney Auctions Right Now

Last Saturday I attended three auctions.

Two were family homes in good locations. Both sold at what I would consider reasonable market prices.

The third was an apartment. It attracted only a single bidder and failed to sell. The highest bid was below what the property last sold for in 2023.

What struck me wasn't whether properties sold or didn't sell. It was the way buyers behaved. There were fewer bidders. Bidding increments were smaller. Nobody was throwing around $100,000 rises. Every bid had to be worked for.

That felt more like a balanced market.

As a Buyers Agent servicing Sydney — particularly the Inner West and Lower North Shore — I've been used to helping clients navigate intensely competitive conditions. The current market feels calmer, where buyers can take a breath when trying to secure a property. That's a welcome change.

Are Investors Leaving the Sydney Property Market?

I don't think investors are disappearing from the market altogether, but I do think some are reassessing where they place their money.

The recent Federal Budget changes have only just been announced, so it is still early days. Some investors may simply be pausing while they seek advice and work through what the changes mean for their own circumstances.

What we do know is that the changes have made new builds relatively more attractive from a tax perspective than established properties. As a result, some investors who may previously have considered established apartments are now focusing their attention on newly built properties, where the tax benefits and depreciation advantages remain stronger.
Whether this is the sole reason or not, it may help explain why some apartment stock is attracting less competition than it did not so long ago.

Of course, tax benefits should never be the sole reason for purchasing a property. New builds can offer attractive incentives, but they can also come with risks. Sydney buyers have seen enough stories about defects, special levies and building issues in recent years to know that thorough due diligence remains essential.

Why Use a Buyers Agent in a More Balanced Market?

If buying has become a little easier, it's fair to ask why someone would still use a Buyers Agent.

Finding properties is only one aspect of our service. In a hot market, we help clients compete. But in any market, we're here to help clients make better decisions. That means carrying out due diligence, providing in-depth valuations, identifying risks, knowing when to walk away from a property that is simply too high risk, and advising on when, and what to offer.

My clients are busy professionals, relocating families, downsizers and people returning to Australia after years overseas. A particular niche of mine is working with women buying on their own, often for the first time. Whether following a divorce or the loss of a partner, having somebody in their corner to guide them through the process and provide reassurance when needed can be worth its weight in gold.

My role is to help clients cut through the noise, avoid costly mistakes and move forward with confidence when the right opportunity presents itself.