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Treak Real Estate Property Update: September 2023

Welcome to the Treak Real Estate Property Update: our regular round-up of news from the Sydney and national property markets, as well as what’s happening right here at Treak!

Spring has sprung, and confidence is up

The Spring selling season is now in bloom, and despite early concerns and gloomy predictions from some bank economists, the Sydney property market is showing real promise, particularly in terms of growth.

According to the latest data from CoreLogic, Sydney property prices have risen 0.2% in the past week, 0.9% over the past month, and 7.2% year-to-date, surpassing the previous year’s figures by 0.7%.

Zooming out, a broader view of combined capital cities reveals a 4.9% surge in property values, translating to an astonishing $34,301 increase in median dwelling value for the year. This upward direction has defied challenges like interest rate hikes, inflation spikes, and tightened borrowing capacities. Welcome relief for both mortgage holders and prospective buyers has come in the form of the RBA’s decision to avoid cash rate increases in three of the last four months.

As we step into spring, a season in which real estate activity tends to elevate, we can expect this growth to continue, though perhaps at a steadier pace for the remainder of the year. This continued growth reflects the renewed confidence of both buyers and sellers in the market, though there is another, even more important factor driving the surge in home values: supply.

Supply dynamics: the invisible hand powering prices

There’s no denying the influence of supply levels when looking at the increase in Australian property prices. The prevailing gap between supply and demand is already large, and is only getting larger across the country.

While winter saw a boost in new listings, the overall advertised supply still remains notably below average. Specifically, it's 15.5% lower than the same period last year across all Australian capitals and nearly 19% below the previous five-year average.

Interestingly, Sydney has just bucked this trend in a major way: there was an encouraging rise of 9.8% in advertised supply during August. If this continues, it could enhance affordability for prospective buyers. Monitoring the course of stock levels will therefore become a pivotal task in the coming months.

Getting the timing right

Recently there’s been a shift in sentiment among both buyers and sellers. The scarcity of coveted A-grade homes and family-friendly apartments mean that they are commanding premium prices. B-grade properties, meanwhile, are spending longer on the market, while savvy buyers are steering clear of C-grade offerings – the classic renovator’s delight.

Strategic property selection is critical, as not all properties mirror broader market trends – performance varies from property to property, area to area. suburbs like Annandale, Dulwich Hill and Newtown in Sydney's inner west, for example, have long been hotspots regardless of what the Sydney market is doing, due to the vibrant lifestyle and growth potential offered by properties there.

On the flipside, high-rise apartments have historically underperformed, while off-the-plan units and subpar investments near universities may prove underwhelming. Likewise, residences in recently developed suburban housing estates might pose challenges as young families grapple with financial limitations, causing older homes in these areas to face sluggish demand.

In such a dynamic landscape, timing your purchase is key. We suggest resisting FOMO and taking a more patient approach. While decisiveness is key, you don’t need to jump on the first option you find. You should also work to understand long-term trends to see what a potential property investment might look like in five or ten years’ time.

That said, if your personal and financial circumstances align, and if you find a property that ticks all your boxes, there may be no better time to buy than now.

Explore your investment opportunities today

What to take from all the info above? In a nutshell, the Sydney property market is in the early stages of an upward swing.

While short-term trends can always sway sentiments, the market's long-term growth direction still points north. It’s therefore important to take a far-sighted view, to both recognise the value that a property purchase will bring in the long-term, and to avoid jumping into a purchase when a bit of patience could lead you to unearthing an even better one.

Select properties with care, and focus on areas with robust demand and promising growth prospects. Or, even better, get expert help in finding the very best properties available to you.

If you’re ready to seize the incredible opportunities that the Sydney real estate market presents, Treak is ready to help. Our expert Buyers’ Agents bring deep knowledge on the Sydney property market, which we use to identify a range of suitable properties – including off-market and pre-market homes that you wouldn’t otherwise have access to.

If (or when) you find your dream property, we then help you secure it at the very best price. Contact our team to find a home that perfectly matches your needs, wants and goals.


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