In a normal property market, you sell before you buy, whereas, in the buoyant market we've had, you would buy before you sold, fuelling competition which resulted in price inflation.
Holding a crystal ball and predicting the property market’s future makes each of us a fortune teller
Predicting the future of the property market can feel like peering into a crystal ball. Recent sharp increases in interest rates have undoubtedly weakened the market, and with further rate hikes on the horizon, uncertainty abounds. Yet, despite the prevailing gloom, I don’t believe we’re headed for a crash.
As a real estate agent with decades of experience through the 1990s recession, the global financial crisis, and the credit squeeze of 2017–18, I’ve seen market cycles come and go. What we’re witnessing now is a transition from the extraordinary capital growth of 2021—where property values surged to create over $2 trillion in wealth—into a more balanced, negotiating market.
This price correction is particularly impactful for those who bought property in the past two years, as they now face a market where buyers and sellers negotiate on more realistic terms. In a typical property market, you sell before you buy, but during the recent boom, buyers often had to secure a purchase first, driving up prices through fierce competition.
Not all segments are experiencing the same downturn, however. Auction clearance rates have fallen to between 55% and 65%, indicating that properties are taking longer to sell in this more normalized market. We’re already seeing significant price drops in one- and two-bedroom apartments, while demand for larger, oversize three-bedroom luxury apartments remains robust—particularly in sought-after areas like Bellevue Hill, Darling Point, Double Bay, and Rose Bay.
For potential sellers, it’s critical to recognize that the market has shifted. Beware of inflated estimates and empty promises; realistic pricing and expert guidance are more important than ever. By understanding the new dynamics and preparing accordingly, both buyers and sellers can navigate this evolving landscape with confidence and resilience.
