Sydney Property Market – Prices, Trends, Forecast [December 2024]

Sydney’s property market saw a decline in November 2024, with dwelling values falling by -0.2% for the month and -0.5% over the quarter. This downturn marks a shift following the market’s peak in August. Sales activity has also dropped significantly, with transaction volumes down -15.4% compared to the same period last year.

Sydney Property Price Growth

The annual growth rate for Sydney remains positive at 3.3%, but monthly and quarterly declines indicate a cooling market. The current median dwelling value in Sydney is $1,196,809.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on December 1, 2024

Sydney Property Market Trends

Rising stock levels and declining buyer activity have contributed to weaker selling conditions. Listings in Sydney are now tracking 10.4% above the five-year average, creating more competition among sellers. Auction clearance rates have held below 60%, and selling times for private treaty sales are trending longer.

Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).

Sydney Property Market Forecast

With affordability challenges, higher stock levels, and slowing buyer demand, the market is expected to continue softening in the coming months. A potential rate cut in 2025 could stabilize the market, but significant recovery may take longer without major shifts in economic conditions.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

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Conclusion for Homeowners

For homeowners considering selling, the current market presents challenges due to increased competition and reduced buyer activity. Strategic timing and competitive pricing will be crucial in navigating these conditions.

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