The Melbourne property market seems to be at a tipping point—could Southwest Sydney be next?
Recent data suggests a slowdown in Melbourne, and experts are predicting that prices might soon begin to ease. This raises key questions for Sydney: Will our market follow Melbourne’s lead? And what should buyers in Southwest Sydney be watching out for?
Sydney’s market: Following in Melbourne’s footsteps?
Historically, Sydney has mostly been in line with Melbourne’s property market trends. Now, with Melbourne showing signs of a slowdown, it’s worth considering whether Sydney’s southwest suburbs are on the verge of a similar shift.
Let’s dive into the numbers. According to SQM Research, in August:
- Property listings: surged significantly in Melbourne (up 12.2%) and Sydney (up 14.7%). For Sydney, this marks a 20.2% rise from August 2023, indicating a growing supply in the market.
- Older listings: There was a 9.9% increase in properties listed for over 180 days in Melbourne, and a 5% rise in Sydney, suggesting a cooling market where homes are taking longer to sell.
- Distressed listings: In Victoria, distressed property sales (those sold at reduced prices for a faster sale) jumped by 2.4%, followed by Sydney at 1.6%.
- Asking prices: Asking prices in both cities remained steady.
According to SQM Research Managing Director Louis Christopher, these stats point to slowing markets in Sydney and Melbourne, “driven by some caution from home buyers and uncertainty by home sellers who have become a little more negotiable in recent weeks.”
What’s happening in Southwest Sydney?
Does this mean the market in Southwest Sydney is starting to slow as well? For now, sellers can breathe a sigh of relief as the market dynamics remain robust. In fact, Campbelltown is one of the fastest-selling suburbs in Sydney, with properties staying on the market for a median of 41 days in August, compared to a median of 57 days across Sydney.
This suggests that while some areas in Sydney are cooling, Southwest Sydney remains strong, as buyers increasingly turn to more affordable suburbs in the west and southwest.
Should you sell now in Southwest Sydney?
If you’re thinking of selling in Southwest Sydney, now might be the time to act. If Melbourne’s trend toward moderation continues, Sydney could soon follow. Selling now could help you capitalise on the current demand for more affordable suburbs before any market shifts take hold.
What should buyers look out for?
For buyers in Southwest Sydney, the current market conditions may offer opportunities to secure a home at a steadier price. Here’s what to keep an eye on that might signal a price drop is coming to your area:
- Properties staying on the market longer: If homes in your area are taking more than six weeks to sell, it could mean sellers are asking too much for current market conditions. This could be your chance to negotiate a better deal.
- Greater variety: An increase in the number of properties within your price range can indicate a shift toward a buyer’s market. More choices mean less urgency for buyers, potentially moderating prices.
- Price reductions: Keep an eye out for listings with reduced prices, or ask agents if sellers are open to negotiation. If properties have been on the market longer than usual, sellers may be more willing to compromise.
Whether you’re buying or selling, keeping up with market trends will help you navigate the coming months with confidence. Stay alert to listings, negotiate wisely, and act quickly when opportunities arise.
Looking to buy or sell? Our experienced agents can guide you through the market’s twists and turns, helping you make the most of your property journey.
The information referred to in this article was obtained from publicly accessible sources, including SQM Research, and Domain. The information provided in this blog post is for general guidance only and should not be taken as personal advice. We do not accept any liability for any errors or omissions.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
