Buyers Gain the Upper Hand as Confidence Slumps

Sydney’s property market has shifted firmly in favour of buyers, with homes selling for hundreds of thousands of dollars less than recent peak prices in several suburbs.

Agents are now reporting price falls of 5 to 15 per cent across parts of the city, particularly in premium areas where higher interest rates have reduced borrowing power and buyer confidence has weakened.

Examples across Roseville, Woollahra, Paddington, East Killara, St Peters and Earlwood show buyers securing homes well below previous sale prices or expected peak values.

Negative Gearing and CGT Changes Continue to Weigh on Confidence

The Federal Government’s reforms to negative gearing and capital gains tax concessions remain a major source of uncertainty.

Sydney has now recorded seven consecutive weeks of auction clearance rates below 50 per cent, with some experts comparing current conditions to the Global Financial Crisis period.

Many buyers are waiting for clarity, while investors are reassessing long-term strategy. First-home buyers have also not filled the gap left by retreating investors, showing that uncertainty is affecting the broader market.

Falling Prices, But Affordability Still Stretched

Despite softer prices, homes are not necessarily becoming easier to buy.

High interest rates, elevated mortgage repayments and cost-of-living pressure mean borrowing capacity remains constrained. Sydney remains one of Australia’s least affordable markets, even as dwelling values fall.

A Window for Prepared Buyers

For financially ready buyers, this market may offer opportunities that were unavailable during the boom. There is less competition, more room to negotiate and greater access to suburbs that were previously out of reach.

However, sellers need to meet the market. Properties priced on last year’s expectations are increasingly struggling to attract offers.

Rodney McLoughlin continues to monitor these changing conditions closely, helping clients understand both the risks and opportunities emerging across the Australian property market.

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. 3 July 2026.

Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.