The Sydney property market is showing clear signs of a cooling trend, particularly across its most prestigious and tightly held areas — including the Eastern Suburbs, where many long-time homeowners assumed values would remain stable regardless of conditions.
The Suburbs Where Prices Are Sliding
According to new data from Domain, sellers across several of Sydney’s most expensive regions have been forced to discount in order to meet the market:
But the data — and the behavior at ground level — is telling a very different story.
Region Median Price Discount – 6 months to Feb 2025
Chatswood – Lane Cove 12.5%
Eastern Suburbs (North) 12.2%
North Sydney – Mosman 11.2%
Pittwater 9.7%
Manly 8.9%
Eastern Suburbs (South) 7.6%
This discounting is happening alongside a rise in days on market, which is a direct reflection of buyer hesitancy. Properties in some areas are now sitting unsold for 50, 60, even 90+ days — especially when vendors hold firm on outdated price expectations.
The auction clearance rate in Sydney currently sits at 64%, a clear sign that buyers are increasingly selective, patient, and unhurried.
Sellers Are Losing Negotiating Power
The “urgency premium” of 2021 and early 2022 is gone.
At recent open homes in Sydney’s east, I’ve personally observed drastically lower turnout — sometimes just a handful of groups at luxury apartment inspections. I followed one such property through to auction, where only a single registered bidder attended, and the buyer effectively increased their own offer by hundreds of thousands of dollars before the agent could negotiate a sale. That’s not competition — that’s negotiation theatre.
In other cases, we’re seeing sellers switch agents mid-campaign, hoping that a new listing approach will “refresh” interest. This is becoming a common strategy in a softening market — but the underlying issue is often pricing, not presentation.
Renovation Risk in a Falling Market
Homeowners considering major renovations right now should pause.
With construction costs still inflated, and sale prices now levelling or falling, the risk is that you’ll spend $300,000 on a renovation — only to find your property is worth less than before you started.
Unless the renovation is essential or purely for lifestyle purposes (not resale), my advice is simple: run the numbers carefully, and seek advice before proceeding. In a falling market, overcapitalisation is a very real risk.
Off-the-Plan Warning Signs
Another clear indicator of buyer hesitation: many newly completed off-the-plan units in Sydney’s east remain unsold for over 90 days post-completion. Some are now listed at lower prices than what buyers paid during pre-sale campaigns.
This should be a cautionary tale — particularly for downsizers — who often buy off the plan expecting seamless transitions and easy capital growth. In this market, buying blind without a seasoned agent is dangerous. You need someone who understands value in real time — not in 18 months’ time.
Rate Cuts Aren’t Enough to Reignite Urgency
Even the Reserve Bank’s recent decision to cut the cash rate to 4.1% in February 2025 hasn’t significantly shifted buyer behavior. While sentiment may have lifted, servicing loans at current prices remains a real hurdle, particularly for families already stretched by cost-of-living pressures.
What we’re now seeing is a game of endurance:
Some sellers are holding out for their price, even if it means months on the market.
Others — often those who have already bought elsewhere — are forced to sell quickly and accept less, creating inconsistent sale results and confusion around property values.
Final Thoughts
This is a time for clarity, not speculation.
For sellers: price correctly, or prepare to wait. The buyers who are in the market are smart, well-informed, and unafraid to walk away.
For buyers: don’t rush — but don’t assume everything will get cheaper, either. Quality properties that are priced well are still moving.
And for anyone renovating, downsizing, or buying off the plan: get experienced guidance. The market is not what it was — and navigating it without strategy is like sailing into a storm without a compass.
Alan Weiss is a licensed real estate agent with over 35 years’ experience in Sydney’s Eastern Suburbs property market. His insight is based on direct market activity, historical trends, and ongoing engagement with buyers and sellers across all price points.
