Buyer hesitation is starting to show in Sydney’s auction market, as the upcoming federal election casts a shadow over property confidence. Over the weekend, agents reported mixed results across auction campaigns, with competition easing in many areas.
Historically, election periods create a “wait and see” mentality among buyers. As auctioneer Edward Pena noted, people tend to pause on major financial decisions when political outcomes are uncertain — not necessarily due to party policies, but because confidence matters when purchasing high-value assets like property.
Buyer Strategy Is Shifting with the Market
With clearance rates easing to around 60%, we’re seeing signs of a more balanced and discerning market. Buyers are becoming more selective, showing strong interest in properties that offer value or standout features, while being less aggressive on stock that feels replaceable.
Rather than frenzied bidding across the board, current conditions reflect a shift toward strategic purchasing. This means homes that are well-presented, uniquely positioned, or priced appropriately are still achieving solid outcomes — but the days of widespread overbidding are cooling.
This measured approach is a return to what many would consider a “normal” market dynamic. And for buyers prepared to act during this quieter pre-election period, the reduced competition could present real opportunities.
Rate Cuts Ignite Price Growth
Sydney property prices surged to a new record high in March, according to PropTrack’s latest data. The February interest rate cut of 0.25% has lifted buyer confidence and borrowing capacity, driving median dwelling values to $1.104 million — up 0.47% over the month and 2.85% year-on-year.
REA Group economist Eleanor Creagh highlighted Sydney’s strong quarterly growth, especially in suburbs like Blacktown, the Eastern Suburbs, and the Central Coast. As one of Australia’s most expensive markets, Sydney is especially sensitive to rate changes, with many buyers re-entering after delays during the high-rate environment of 2024.
Medium-Term Outlook: Supply & Wages Matter
Looking ahead, economists expect moderate price growth over the next five years, fuelled by population growth, limited housing supply, and infrastructure investment. Brisbane and southeast Queensland are tipped to outperform due to the Olympics and internal migration.
However, affordability remains a major constraint — especially for younger buyers. A decade of stagnant wages has slashed first-home buyer purchasing power by an estimated $54,000, according to research by Per Capita. Even with rate cuts and buyer incentives, long-term affordability may depend as much on wage growth as housing supply.
Rodney McLoughlin continues to monitor these shifts closely, offering guidance for buyers and sellers navigating this evolving landscape.
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. 4 April 2025
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.
