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Has the property market peaked?

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Has the Sydney Property Market Peaked? What Buyers Need to Know in 2025

The Sydney property market has seen significant shifts over recent months, leaving many home buyers and investors wondering: Has the market reached its peak?

If you’re looking to take advantage of falling interest rates and make your move in 2025, it’s essential to understand where the market is heading and how it could impact your buying strategy.

Let’s break down the key trends and what they mean for you.

Property Price Growth is Losing Steam

While Sydney property values increased in 2024, growth slowed significantly in the latter half of the year.

📉 National home values rose 4.9% in 2024, adding approximately $38,000 to the median property value.
📉 The first half of 2024 saw home values increase 4.1%, but growth slowed to just 0.7% in the second half.
📉 Five of the eight capital cities recorded price declines between July and December.
📉 In December 2024, we saw the first national price decline in almost two years (-0.1%).

CoreLogic’s research director, Tim Lawless, attributes this slowdown to affordability constraints and an increase in advertised property listings.

While the Sydney market remains resilient, buyers are becoming more cautious, and competition is cooling in some areas—a key opportunity for buyers to negotiate better deals.

Rental Growth Has Slowed

For investors, rental demand remains strong, but price growth has softened compared to previous years.

🏠 In 2024, rents increased by 4.8%, a drop from 8.1% growth in 2023.
🏠 The December quarter saw just a 0.4% increase in rents—the smallest rise since 2018.
🏠 According to CoreLogic, rental affordability is becoming a limiting factor, slowing further increases.

What does this mean for investors? Properties with strong rental appeal—good locations, low maintenance, and high demand—will still perform well. However, investors need to consider rental yield projections carefully when making buying decisions.

What This Means for Buyers and Sellers in Sydney

📍 For Sellers: Some property owners may hold off selling in anticipation of price rebounds, which could restrict stock on the market.

📍 For Buyers: Lower competition and reduced price growth could create negotiation opportunities, especially for those ready to buy before interest rates fall further.

📍 For Investors: Rental demand remains high, but affordability pressures may affect tenants’ ability to absorb further rent increases. Strategic property selection will be key.

CoreLogic’s Eliza Owen suggests a moderate downturn is likely in early 2025, but history shows declines in property prices tend to be shorter and smaller than growth phases.

Interest Rate Cuts Could Shift the Market Again

The Reserve Bank of Australia (RBA) has begun cutting interest rates, which could increase borrowing capacity and push property prices back up.

🔹 Lower rates = higher buyer demand as borrowing becomes more affordable.
🔹 More buyers = potential price increases later in 2025.
🔹 Now could be the time to secure a property before competition intensifies.

Thinking About Buying? Here’s Why Now Could Be the Time

If you’re considering buying a home or investment property in Sydney in 2025, now is the time to plan ahead and secure your finance.

✅ Interest rates are falling, making borrowing more affordable.
✅ Slower price growth means better opportunities to negotiate.
✅ The right loan structure can help you manage repayments and cash flow.

💬 Let’s talk! As your Sydney property finance expert, I can help you navigate the changing market, secure the best loan, and ensure you’re in a strong position to buy when the time is right.

📞 Contact me today to start planning your next property move.

2025 Property Market Insights & Equity Opportunities for Homeowners

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Will Property Prices Keep Rising in 2025?

As cost-of-living pressures mount, there’s good news for homeowners: Australian property prices have been on a 21-month streak of growth, with total residential property value hitting a record $11 trillion, according to CoreLogic. Cities like Sydney, Brisbane, and Adelaide are at their highest property value levels ever.

However, recent data indicates a cooling market. National property values grew by just 1% in the September quarter—down from a 9.7% annual growth rate earlier this year. This suggests the pace of growth is slowing, attributed to increased listings and cautious buyer behaviour.

Key Drivers of 2025 Property Trends

  1. Supply and Demand:
    Property prices often depend on the balance between available listings and buyer interest. Low stock levels in cities like Perth, Adelaide, and Brisbane—currently more than 20% below the five-year average—have created a seller’s market, driving competition among buyers. Conversely, increased listings in other areas may ease upward price pressure.
  2. Interest Rates:
    The Reserve Bank of Australia (RBA) has held the cash rate steady since late 2023. However, many economists predict rate cuts in early 2025. Lower rates mean increased borrowing power, which could spark renewed buyer competition and further increase property prices.

What Rising Property Prices Mean for You

Rising property values can unlock untapped equity, presenting opportunities to achieve financial goals:

  • Invest in Property: Leverage your equity to expand your portfolio with an investment property.
  • Renovate Your Home: Enhance your property’s value further with upgrades.
  • Reduce Debt: Consolidate or refinance existing debts at lower rates.

Homeowners have seen significant gains over time; many have multiplied their property values within the life of a 30-year mortgage.

Associated Costs of Property Ownership

For first-time buyers or investors, understanding the costs is essential. These include:

  • Stamp Duty: Calculate based on property value. Exemptions may apply for first-home buyers.
  • Legal Fees: Cover conveyancing and other property-related legalities.
  • Inspection Costs: Ensure the property’s condition with pest and building inspections.

Looking Ahead

Economists anticipate a more gradual 5.6% national property price increase in 2025 (KPMG report). Whether you’re a seasoned investor or a first-time buyer, early planning is crucial to make the most of this trend.

Curious about your property’s equity or planning your next purchase? Let us help you navigate 2025’s market with confidence. Contact us today for expert advice and tailored loan solutions!

Preparing for a spring property purchase

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Spring has almost sprung and in the property world, it’s an exciting time of year.

So, what will this year’s spring selling season look like?

Property prices are still on the rise in many markets, despite the Reserve Bank of Australia’s aggressive interest rate hikes since May 2022. Property prices rose 0.7 per cent in July – the fifth straight month of gains.

Listings are also on the rise but remain below 2022 levels. If you’re a prospective buyer, you’ll need to be ready to pounce when you find a bargain this spring. Here are our tips for being ready.

Tip 1: Do your research

The property market is constantly changing. If you’re looking to buy, you’ll want to make sure you have the latest information at your fingertips so that you’re confident when making an offer.

We can provide a range of reports to help you cover your bases. Get suburb reports with all the info you need to narrow down your property search. Access property reports with valuation ranges, recent sales data and more.

Tip 2: Get your finances in order

If you do find a bargain, you’ll want to be ready to jump on it. Speak to us about organising pre-approval on your finance sooner rather than later.

Pre-approval means a bank has agreed, in principle, to lend you a certain amount of money.

Having pre-approval gives you confidence during price negotiations with vendors. It may also give you an edge over other buyers without pre-approved finance.

Tip 3: Find out why the vendor is selling

Understanding the vendor’s motivation to sell may give you an upper hand during negotiations.

What type of settlement terms and deposit will be most attractive to them?

They may be moving interstate, or need liquidity fast, in which case they may drop their price for a shorter settlement.

Maybe they need an extra-long settlement while they find somewhere else to live.

Or perhaps a larger deposit would make you more favourable compared to other buyers?

Ask the real estate agent why the vendor is selling and use the information as a negotiation tool.

Tip 4: Rally your team

If you’re planning a spring property purchase, start thinking about which professionals you want on your team.

You’ll need a reputable conveyancer or solicitor to take care of the legalities for you.

Depending on the area you are looking to buy into, you may benefit from a Sydney Buyers Agent who can help you with the negotiations

In addition, you’ll want to line up building and pest inspectors to make sure the property is free of unwanted surprises like termites and structural defects. If they do discover anything untoward, remember you can use this as ammo during price negotiations.

As your finance broker, we’ll compare the market and suggest a competitive home loan that meets your specific financial situation and goals.

Get in touch

Property prices are on the rise in many markets, but there are plenty of opportunities out there for savvy buyers.

Get in touch today to organise pre-approval on your finance and be ready to buy your first home, next home or an investment property this spring.

Tips for buying sight unseen

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There’s no doubt about it. Buying sight unseen – that is, purchasing a property without viewing it in person – can be risky.

What if it has a strange smell when you finally do enter the property?

What if it’s a little darker than how it appeared in the advertisement photos?

What if the neighbour has a junkyard encroaching on your doorstep or there’s a huge electrical tower outside?

These are all valid concerns, but despite this, some property hunters are still diving in with a sight-unseen regional or interstate purchase. Why?

One common reason is that low levels of new listings is creating fierce competition between buyers in some markets, and savvy investors know that when an opportunity arises, sometimes you just need to jump.

So, how do you mitigate risk when buying sight unseen? Here are some tips.

Know your ‘why’ and do your research

Investors usually buy for either capital growth potential or for cash flow. What is your driver? This will ultimately affect the type of property you buy.

If capital growth is the end goal, consider:

  • Population changes – Is the area expected to grow? Are more jobs likely to become available and attract more people to the area?
  • Supply and demand – Is there a strong demand for housing in the area? A lack of supply and strong demand could be a recipe for price growth.
  • Lifestyle appeal – Is it a place where people want to live? Is it a ‘leafy’ suburb, for example, or near the beach? Is the area being gentrified with new properties and amenities?
  • Statistical indicators – Consider the historical capital growth. What are the vacancy rates like? Are vendors discounting?
  • Infrastructure and amenities – Are there any planned infrastructure improvements or zoning changes that could affect capital growth? Is there good access to amenities like transport links and schools?

If you are buying purely for cash flow, you’ll want to find a property with a high yield. With this strategy, the rental income will likely cover the costs associated with owning the property.

Our Sydney Buyers Agents have transacted over 2000 properties since we first set up our business in 2005 – this is what they do best, day in and day out. Check out Buyers Agents Services

With over 176 Google 5 star reviews (and counting) – we like to think we are doing great things for our clients hence the great reviews … check out our Google reviews here…

Do an inspection  

If there’s one thing that the pandemic taught us, it’s that you can do more than you think remotely.

With so many online resources available, it’s possible to find your next real estate investment, do extensive research online, get a feel for the neighbourhood on Google maps, and even do an inspection – all from your computer, iPad or smartphone.

These days most real estate agents will happily do a virtual walkthrough with you via a video call. However, if you can get someone to physically inspect the property on your behalf, that’s always preferrable.

It could be a family member or friend whose judgement you trust. Otherwise, you may consider hiring a buyer’s agent. They can do inspections, offer advice and bid on your behalf at auction.

As with any property purchase, don’t forget to get building and pest inspections.

Get a valuation

An official valuation is a great way to get a true indication of a property’s value and to make sure you’re not overpaying.

If you’re purchasing sight unseen, it’s worth considering paying the money for a valuation for peace of mind.

Speak to a property manager

Once you buy an investment property, you’ll likely get a property manager to take care of it for you. Why not consider enlisting their help sooner rather than later?

If you’re buying sight unseen, they can provide market insights and help answer any questions you may have.

Ready to get started?

Keeping an open mind to opportunities that aren’t necessarily in your own backyard can pay off, as long as you do your research and due diligence.

If you’re considering buying an interstate or regional property sight unseen, it’s important to have your finance in order.

Speak to us about organising pre-approval, so that you’re ready to go when the right property comes along. Get in touch today. 

You are welcome to have a look at our website to get an understanding of our full service offering – https://stratgroup.com.au/services/ 

Why use a mortgage broker to refinance?

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Do you remember dial-up internet access?

How about audio cassettes?

Don’t worry if you don’t; they are, of course, a thing of the past.

A 30-year mortgage with one lender is a bit the same – a thing of the past and something that is largely obsolete nowadays. Especially given the current climate.

With the cost of living going through the roof and home loan interest rates shooting up from a record low of 0.1 since last May, more and more people are refinancing their mortgages – 2,370 every working day in Australia, to be precise.

Homeowners have experienced the fastest tightening cycle in a generation, and many are ditching their current lender for a more competitive mortgage elsewhere.

Analysis from the Australian Banking Association (ABA) found 70 per cent of bank customers who refinanced their mortgage in the past six months did so with another lender.

If, like them, you feel it’s time to shop around, here’s why you should use a mortgage broker to refinance.

Expertise you can trust

At the moment there is intense competition in the home loan industry. Banks are hungry for your business and are offering all sorts of sweeteners to get you on board.

Cashback offers. Rate discounts. Package deals. The whole shebang.

So, how do you know which home loan is most suited for you?

That’s where you need a professional on your team. A mortgage broker is a trained finance specialist. We know the system and which products best suit our clients’ needs.

We are also across all the latest industry developments, so you gain access to a wealth of knowledge by working with us.

Tailored finance solutions

There are no one-size-fits-all mortgages. Everyone’s financial situation and goals are different, which is why you need tailored financial solutions.

We’ll find a loan that’s appropriate for your specific needs. If we think you could benefit from loan features like an offset account or redraw facility, we’ll explain why. But we must work in your best interests and won’t push any extras on you that you don’t actually need.

Options, options and more options

If you go directly to your current lender asking for a more competitive rate, you only get what they are able to offer i.e. their loan products and the rates they are prepared  to put on the table.

We, on the other hand, have access to the full smorgasbord – a panel of lenders with different types of products, features and benefits.

What about commissions? The commissions we receive are pretty similar across lenders. This ensures there’s no incentive for a broker to recommend one over another. Our role and obligation is to act in our client’s best interests.

Make your life easier

Trying to understand all the different home loan products out there can be stressful and overwhelming. With a mortgage broker, we can take the burden out of refinancing.

We can also liaise with your chosen lender and facilitate the whole process.

Prepare for the fixed-rate cliff

One-fifth of Australian home loans will revert from fixed to variable in 2023. Do you fall into this category?

If you do, it’s worth speaking to a mortgage broker about your refinancing options. Your current lender’s variable rate may not be the most competitive or appropriate for your circumstances, so it’s important to get a second opinion.

When your fixed rate expires, you have 3 options:

  1. Refix
  2. Reprice
  3. Refinance

Common reasons to refinance

  • Secure a more competitive interest rate
  • Make the most of possible interest-saving features like offset accounts or redraw facilities
  • Access equity for renovations, additional properties or other financial goals
  • Consolidate debt.

Like to chat?

We understand the market. We understand mortgages. And we’ll take the time to understand your financial situation and goals.

Speak to us about how your home loan compares to others and we will explain if switching lenders could be financially worthwhile. Get in touch today.

You are welcome to have a look at our website to get an understanding of our full-service offering – https://stratgroup.com.au/services/