June 2024

Real Estate Round Up #71

This month, the Sydney housing market has exhibited several notable trends and developments, driven by a range of economic factors and policy decisions. The Reserve Bank of Australia’s (RBA) decision to keep interest rates steady, ongoing debates about the best time to sell property, and government policies on new housing locations are among the key topics influencing the market.

Interest Rates and Market Impact

The RBA has decided to maintain interest rates at 4.35%, as reported by The Real Estate Conversation (3). This move aims to provide stability amid the economic uncertainties that have marked the past few months. The steady rates offer a respite for current mortgage holders, particularly those struggling with repayments. However, it also means that potential buyers might remain cautious, affecting overall market activity.

A Domain article discusses how certain homeowners are finding it particularly tough, even with steady interest rates. These challenges are attributed to the rising living costs and stagnant wages that continue to weigh heavily on potential buyers (1). This sentiment is echoed by CoreLogic, which warns of increasing mortgage arrears despite the steady rates, indicating that many homeowners are still finding it challenging to meet their financial obligations (7).

Palm Beach

Dulwich Hill Light Rail Station

Seasonal Trends in Property Sales

A recurring debate in the real estate community is whether winter is an optimal time to sell property. According to a Domain article, the winter months often see fewer listings, which could benefit sellers due to reduced competition (2). However, buyers tend to be less active, leading to a slower market pace overall. The article suggests that while there are advantages to selling in winter, it ultimately depends on the specific circumstances and needs of the seller.

Government Policies on Housing Locations

The New South Wales government’s decision to keep new housing locations secret has sparked considerable debate. According to ABC News, this policy aims to prevent land speculation and ensure that housing developments are rolled out in a controlled manner (4). However, critics argue that this lack of transparency can lead to uncertainty and hinder the market’s ability to respond to housing demands effectively.

Property Taxation and Hidden Costs

The Real Estate Conversation reports that the Real Estate Institute of New South Wales (REINSW) has raised concerns about hidden taxes on property owners, which can significantly affect the overall cost of homeownership (6). These hidden costs, coupled with the potential implications of the stage three tax reform, which aims to simplify the tax system but might increase the tax burden for some property owners, create a complex financial landscape for both current and prospective homeowners (9).

Gentrification and Its Indicators

Indicators and drivers of gentrification continue to be a topic of interest, particularly in Sydney’s evolving neighbourhoods. ABC News discusses various factors that contribute to gentrification, such as infrastructure development, demographic changes, and economic shifts (8). Understanding these indicators can help predict which areas might experience increased property values and revitalisation efforts, although it also raises concerns about affordability and displacement of long-term residents.

Comparison with Overseas Markets

A comparison of the Australian housing market with overseas peers reveals some stark differences. Domain reports that Australia’s housing market has been underperforming compared to other countries, partly due to restrictive policies and higher costs (10). This underperformance highlights the need for more effective housing policies and economic measures to stimulate growth and affordability in the market.

Migration and Housing Crisis

The debate over whether reducing migration would help alleviate the housing crisis continues to divide opinions. An article from Domain explores this issue, noting that while some argue that fewer migrants could reduce demand and lower prices, others believe that migrants contribute significantly to the economy and the housing market’s vibrancy (11). The balance between maintaining a robust population growth and ensuring affordable housing remains a delicate one.


This month’s analysis of the Sydney housing market reveals a complex interplay of factors influencing both buyers and sellers. From interest rate decisions and seasonal sales trends to government policies and broader economic comparisons, each element contributes to the overall market dynamics. As the market navigates these challenges, it will be crucial for stakeholders to stay informed and adaptable to the evolving landscape.


  1. Domain. (2024). Rates remain on hold, but these homeowners are doing it the toughest. Retrieved from [link](https://www.domain.com.au/news/rates-remain-on-hold-but-these-home-owners-are-doing-it-the-toughest-2-1295015/)
  2. Domain. (2024). Is winter a bad time of year to sell your home, or is it better to sell in winter? Retrieved from [link](https://www.domain.com.au/news/is-winter-a-bad-time-of-year-to-sell-your-home-or-is-it-better-to-sell-in-winter-1294825/)
  3. The Real Estate Conversation. (2024). RBA keeps interest rates steady at 4.35%. Retrieved from [link](https://www.therealestateconversation.com.au/news/2024/06/19/rba-keeps-interest-rates-steady-435-the-agency/1718750620)
  4. ABC News. (2024). NSW government is keeping its new housing locations secret. Retrieved from [link](https://www.abc.net.au/news/2024-06-19/nsw-government-is-keeping-its-new-housing-locations-secret/103994202)
  5. Domain. (2024). The striking photo that rams home a fact about Sydney. Retrieved from [link](https://www.domain.com.au/news/the-striking-photo-that-rams-home-a-fact-about-sydney-1295682/)
  6. The Real Estate Conversation. (2024). REINSW: More hidden taxes for property owners. Retrieved from [link](https://www.therealestateconversation.com.au/news/2024/06/24/reinsw-more-hidden-taxes-property-owners/1719187100)
  7. The Real Estate Conversation. (2024). Mortgage arrears rising from record lows, expected to increase further: CoreLogic. Retrieved from [link](https://www.therealestateconversation.com.au/news/2024/06/20/mortgage-arrears-rising-record-lows-expected-increase-further-corelogic/1718828768)
  8. ABC News. (2024). Indicators and drivers of gentrification. Retrieved from [link](https://www.abc.net.au/news/2024-06-24/indicators-drivers-of-gentrification/103998708)
  9. Domain. (2024). How will the stage three tax reform affect property prices? Retrieved from [link](https://www.domain.com.au/news/how-will-the-stage-three-tax-reform-affect-property-prices-1293015/)
  10. Domain. (2024). Why the Australian housing market is worse than our overseas peers. Retrieved from [link](https://www.domain.com.au/news/why-the-australian-housing-market-is-worse-than-our-overseas-peers-2-1291509/)
  11. Domain. (2024). Would a reduction of migrants to the country really help the housing crisis? Retrieved from [link](https://www.domain.com.au/news/would-a-reduction-of-migrants-to-the-country-really-help-the-housing-crisis-1289165/)