In the fiscal year 2023/24 (FY24), cash purchases continued to play a significant role in New South Wales’ (NSW) residential property market. Approximately 27.7% of all residential transactions in NSW were conducted without a mortgage, totaling $61.0 billion—a 22.7% increase from the previous year.
This trend underscores the challenges monetary policy faces in controlling inflation. Despite rising interest rates, cash buyers—often retirees or asset-rich individuals less affected by borrowing costs—comprised over a quarter of property purchases in FY24. This resilience may widen the intergenerational wealth gap, as younger, mortgage-dependent buyers face greater financial pressures.
In Sydney several areas stood out for their high aggregate value of cash purchases in FY24:
- Sydney CBD (2000): Over $1.7 billion spent across more than 500 properties, with a median price of $1.65 million.
- Mosman (2088): $944.2 million spent across 223 properties, with a median price of $2.9 million.
- Bellevue Hill (2023): 80 cash purchases totaling $660.1 million, with a median price of $3.63 million.
These figures highlight the substantial impact of cash buyers in these affluent suburbs, reflecting both high property values and the significant role of non-mortgaged transactions in these markets.
