The three trends shaping Sydney property.

At the back end of 2024, there was a sense of uncertainty hovering over the Sydney property market.

Consecutive interest rate increases, a cost-of-living crisis and a pronounced undersupply of rental accommodation created a confluence of challenges that began to weigh on prices, sentiment and demand.

Come January 2025, and the market was ready to prove its ultimate truth: that it simply cannot be held down. It took just a matter of weeks for price declines to correct themselves and for the 2025 outlook to be one of growth again.

While activity has continued to fluctuate across the first quarter (Q1 2025), reflected largely by the moderating auction rate averaging 60-70% for wider Sydney, transaction levels have remained robust.

BresicWhitney has sold close to $600 million of Sydney real estate in Q1, with demand for property evident across all price points. It’s particularly pronounced among buyers seeking homes between $5,000,000 and $10,000,000; and first-home buyers and investors seeking quality yet more affordable homes between $1,000,000 and $2,000,000.

Looking ahead, there will be three key trends that set the agenda and influence results seen in market.

As we identify and explore in this edition of The Quarterly, we expect these to be: The Federal Election; the increase in construction and building costs - driving appetite for turn-key homes; and the ‘return to work’ or office mandates, that are once again stimulating activity across the CBD.

Expect to see and hear more about the NSW Government’s ‘Low to Mid-Rise Housing Policy’ over the coming months, too.

Aimed at creating “more housing choice or people at different stages of life”, it encourages housing within 800 metres from nominated town centres and transport hubs. The areas where planning changes have been identified include the Lower and Upper North Shore, Hunters Hill, the Eastern Suburbs, the Inner City, the Inner West and further afield.

Early reports have highlighted a keenness from neighbours in some of these areas to capitalise on opportunity and offer a collective parcel of land for redevelopment.

BresicWhitney’s view is that while this policy does have the power to influence property sales, it is a nuanced policy that needs time in market to assess the full impact.

The Quarterly also explores movement and key themes in the rental market, highlighting that undersupply remains a critical issue.

All in all, while there’ll be continued fluctuations within the Sydney property market over Q2, one thing remains evident: high quality, well-located homes are in demand.

As we move through this next frontier, knowledge has and will remain a superpower. Thanks for reading, and we hope you enjoy this edition of The Quarterly.

Download the BresicWhitney Quarterly today to unpack what you need to know in Sydney property.