Sydney Property Surge: Listings Soar in Key Suburbs
Sydney’s property market is seeing a significant shift as the number of available homes has skyrocketed in certain suburbs. This surge in listings is expected to bring much-needed relief to home buyers, easing competition and slowing down the rapid price growth seen in recent years.
Recent data shows that the number of new property listings in Greater Sydney increased by 11.2% in May, offering buyers about 30% more options than this time last year. Some areas have experienced even more dramatic increases, with the southwest seeing a 63.7% rise, the inner west up by 45.9%, and Blacktown and the northern beaches each increasing by around 37%.
According to market analysts, this influx of new listings is providing buyers with more choices and reducing the pressure to make high offers. While demand for homes remains strong, the increase in supply is expected to stabilize prices, making it easier for buyers to find and purchase properties.
Tax Cuts Boost Home Buyers’ Budgets
Starting July 1, new tax cuts are set to enhance home buyers’ purchasing power significantly. These cuts will increase the borrowing capacity of many buyers, with dual-income couples seeing an average increase of $40,000. This boost means that about 39% of Sydney houses and 78% of units will become affordable for these buyers.
Analysts note that dual-income couples will benefit the most from these tax cuts, which are expected to increase buyer confidence and open up previously unaffordable suburbs to more potential buyers.
Stability Returns to Sydney Auctions
The Sydney auction market is returning to a more stable state, with moderate bidding and controlled price increases becoming the norm. Concerns about potential interest rate hikes have tempered buyer enthusiasm, leading to more balanced auctions.
Recent sales highlight this trend, with properties achieving solid but not extreme price increases. For example, a Georgian-style house in Roseville recently sold for $3.445 million, well above its price guide, showcasing the continued demand for quality properties.
Forecast: Cooling Price Growth
A new report from KPMG Australia predicts a cooling of the rapid price growth in the Australian real estate market over the next 18 months. House prices are expected to rise by 5.3% through the end of 2024 and by 5.6% in 2025, down from the 7.7% rise recorded over the past year.
This slowdown is attributed to high interest rates, cautious consumer sentiment, and a slower rate of migration. However, anticipated interest rate cuts in 2025 may provide a slight boost to the market, leading to steady but moderate growth in house prices.
Conclusion
With a significant increase in property listings and enhanced borrowing power from upcoming tax cuts, Sydney’s real estate market is entering a more balanced phase. This new environment offers better opportunities for home buyers to secure properties without the intense competition of recent years.
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.
