Sydney’s housing market continues to defy gravity as fresh inflation figures deliver a major blow to interest rate cut hopes. Meanwhile, buyer competition is intensifying across the city, driven by surging pre-approvals and federal incentives.
🔥 Rate Relief? Not Yet.
The Reserve Bank has been forced to hold its fire on further interest rate cuts after shock inflation data came in well above expectations. Core inflation is now at 3.0%, a full 0.4% above the RBA’s forecast. With the next potential rate cut delayed to early 2026, mortgage holders can no longer wait.
Instead, experts suggest homeowners act now by renegotiating their interest rates or refinancing. With more than 30 lenders offering better deals than the average 5.3%, there’s immediate value in switching. As rates hold, savvy property owners are taking control of their financial future rather than relying on the RBA.
🏡 Buyer FOMO Reaches Fever Pitch
Across Sydney, pre-approvals are booming. Suburbs like Manly, Dee Why, North Sydney, and Hurstville are seeing a surge in loan pre-approvals—signalling fierce competition ahead.
Buyers are scrambling to get in ahead of further price growth, with some suburbs seeing $300K+ increases in under a year—often with no renovations.
The expansion of the First Home Guarantee Scheme is also pouring fuel on the fire, enabling purchases with just 5% deposits. This increased borrowing capacity is creating upward pressure on prices, especially in the $1.2M to $1.8M bracket.
🌎 Unique Properties Linger, But Core Market Moves Fast
While competition is high, not all properties are moving quickly. Data shows that unique or niche homes, particularly in lifestyle areas like Berry, Culburra Beach, and Normanhurst, are taking much longer to sell.
Many of these homes appeal to specific buyers or come with premium price tags. As a result, they sit idle while the broader market experiences rapid turnover.
⚡ Rodney McLoughlin’s Insight
Rodney McLoughlin notes a distinct shift in buyer sentiment: “Buyers who were cautious earlier this year are now acting decisively. The combination of expanding lending schemes, stable interest rates, and low supply is creating a perfect storm for competitive bidding.”
He adds: “We’re helping clients navigate this shift by focusing on value and strategy. It’s no longer about waiting—it’s about acting smart and early.”
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 30 October 2025
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalised advice and market expertise, reach out to Rodney today.
