If you’re planning to buy in Sydney’s Eastern Suburbs this year—whether you’re upsizing, downsizing, or purchasing your first home—understanding current market conditions is essential.
Here are seven key insights to help you navigate your next move with confidence:
1. Stock Levels Are Still Critically Low
In real estate, “stock levels” refer to the number of properties listed for sale at any given time. As of mid-2025, supply remains tight across Australia, and especially in Sydney’s East.
According to CoreLogic, new listings remain 3% below the five-year average. Even though total stock has risen slightly compared to last year, it’s still well below historical norms. In Sydney, spring 2024 listings were notably weaker than in cities like Adelaide or Perth.
Why does this matter?
Upsizing from a unit to a semi—or from a semi to a freestanding home—often requires an additional $2–$3 million. For many, the leap in both cost and borrowing requirements is too great.
At the same time, downsizers face another issue: the cost of a large new apartment in the East is often equal to or greater than the sale value of their family home. This creates a gridlock where both groups stay put, further restricting available stock.
2. What Does a $1M–$3M Mortgage Really Cost?
Let’s look at the current cost of borrowing:
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$1 million loan
• Monthly repayments: $5,996
• Required income: $239,820 p.a.
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$2 million loan
• Monthly repayments: $11,991
• Required income: $479,640 p.a.
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$3 million loan
• Monthly repayments: $17,987
• Required income: $719,461 p.a.
With average mortgage rates sitting near 6%, many buyers are hitting servicing limits. This is a major reason we’re seeing longer hold periods and fewer properties on the market.
3. Not All Markets Move Together
There’s no such thing as one “Sydney market.” Different asset classes respond differently to interest rates, buyer sentiment, and supply constraints.
In recent years:
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Freestanding homes and luxury apartments in prime locations have surged in value.
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Entry-level and older apartments, particularly in Bondi Junction and Randwick, have seen slower, steadier growth.
Understanding the segment you’re buying into is more important than following broad headlines.
4. If You Love the Property, Make an Offer
When buying a home to live in—especially a long-term residence—the decision isn’t just about timing the market. It’s about matching the property to your needs, lifestyle, and financial comfort.
In 2025, where quality homes are scarce and competition remains high, waiting for “a better time” could mean missing the right home altogether.
If the property ticks your boxes and you’re in a financial position to act—do so with confidence. A tightly held suburb doesn’t offer second chances often.
5. The Truth About Off-Market Buying in Sydney
“Off-market” listings have become increasingly common, especially with the rise of buyers’ agents. But in reality, many off-market properties are:
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Soft-launches with unrealistic price expectations
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Opportunities for agents to secure a listing, not necessarily a good deal for buyers
There’s no public marketing, no online listing, and often no competitive tension. That can benefit buyers—but only with the right representation.
A skilled agent can help you assess value, negotiate on terms, and avoid overpaying in a space that lacks transparency.
6. Should You Buy Before You Sell?
Buying before selling can be tempting—especially when your ideal property appears unexpectedly. But it’s not without risk.
This is particularly true when buying off-the-plan, where delays, shifting values, and rising construction costs can leave you exposed.
Even for established homes, carrying two mortgages or bridging finance at today’s interest rates can be a significant financial burden.
That said, in tightly held suburbs, long settlements (up to 6 months) are still being negotiated. If you’ve spoken with your broker, understand your borrowing limits, and have a solid valuation on your current home, buying first may be viable—but only with careful planning.
7. Stamp Duty in NSW: Still a Major Hurdle
Stamp duty remains one of the biggest costs for buyers—and it’s paid from your post-tax income.
Despite past discussions about reform, the annual property tax option for first-home buyers closed in mid-2023, and no new scheme has been introduced.
Here’s what buyers are facing today:
| Suburb |
Median House Price |
Estimated Stamp Duty |
| Bellevue Hill |
$5.8 million |
~$344,000 |
| Paddington |
$2.5 million |
~$122,505 |
| Bondi |
$3.2 million |
~$156,805 |
Stamp duty must be factored into your cash reserves—it isn’t covered by your mortgage. It’s not just a tax. It affects your real buying power.
Financial Conditions and Lending in 2025
The Reserve Bank of Australia has delivered two interest rate cuts so far this year—reducing the cash rate to 3.85% following modest cuts in February and May.
These moves come in response to easing inflation and global uncertainty, particularly around international trade and credit tightening.
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Variable mortgage rates are now averaging 6.09% for owner-occupiers and 6.29% for investors
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Investor lending has eased to 37.2% of total loan activity in Q4 2024, though remains above historical norms
This environment is gently lifting market confidence—particularly among upgraders and first-home buyers—but lending remains cautious.
Final Thought
Buying in 2025 is about strategy, timing, and financial clarity. The Sydney market remains competitive, fragmented, and price-sensitive—but opportunities still exist for well-prepared buyers.
If you’re considering a move, make sure your advice is local, your numbers are realistic, and your decisions are based on your long-term needs—not short-term noise.
