The Property Edit | Clarity in a Changing Market
We hope you've found a moment to pause between the busy!
In this month's Property Edit, we are sharing a recent Randwick case study (and how we secured an off-market home below expectation), a clear look at what CGT changes may… and may not… mean for affordability, and a snapshot of current Eastern Suburbs conditions as the market shifts into a more balanced phase.
Let's dive in.
Eastern Suburbs Market Update: A Market in Transition
The Sydney Eastern Suburbs property market is currently shifting into a more balanced phase, following recent interest rate rises and growing global uncertainty.
Auction clearance rates across Sydney have softened to around 50–55%, with some Eastern Suburbs pockets tracking even lower. This reflects a noticeable change in buyer behaviour; less urgency, more caution, and a stronger focus on value. Buyers are taking longer to make decisions, and we're seeing more properties negotiated post-auction rather than selling under the hammer.
The recent rise in interest rates has played a key role. Borrowing capacity has reduced, particularly impacting leveraged buyers, while higher holding costs are prompting some vendors to bring stock to market. The result? Increased choice for buyers and, in many cases, improved negotiating conditions.
At the same time, global events, particularly the ongoing conflict in the Middle East are influencing the market in more indirect ways. Rising oil prices are pushing up construction and transport costs, which is slowing new development and reinforcing one of the Eastern Suburbs' key drivers: limited supply.
Despite these short-term pressures, the fundamentals of the Eastern Suburbs remain strong. Lifestyle appeal, proximity to the CBD, and tightly held property continue to underpin long-term demand. Importantly, premium buyers and cash purchasers remain active, particularly in blue-chip locations.
What does this mean for buyers?
We are currently in a window where conditions are more favourable than they have been in recent years. Less competition and greater flexibility from vendors are creating opportunities to secure quality assets at more considered prices.
In markets like this, strategy matters and informed buyers benefit the most.
From The Blog...
Will changing CGT concessions actually improve affordability?
CGT concessions are back in focus... particularly the CGT discount, which shapes after-tax returns for investors.
In theory, reducing the discount could temper investor demand and lift revenue. In practice, any price impact is likely to be gradual, because affordability is still driven mainly by structural factors: supply constraints, planning settings, credit conditions and population growth.
There are also second-order effects, lower turnover as investors hold longer, and potential rent pressure as returns are recalibrated.
The takeaway: tax policy matters, but affordability rarely shifts on one lever alone. Lasting improvement tends to come when policy and supply move together.
Ready to find the right property with expert guidance and support?
Let’s chat.
0431 950 813
victoria@morishbuyersagency.com.au
Victoria Morish