Sydney Property Market Reset: Opportunity or Risk for Buyers?

The market isn’t falling, it’s resetting

After the rapid growth of the COVID years and the resilience through interest rate rises, Sydney is now moving into a more balanced phase. We’re seeing slightly longer days on market, more price adjustments, and less aggressive bidding at auction. That doesn’t mean prices are falling across the board. It means the market is becoming more selective.

Buyers aren’t out of the market, they’re just treading cautiously. This means those who take advantage now are going to avoid the rush of competition later when (not if) the markets rebound. This can, and likely will, happen very quickly when sentiment changes.

Experience in cycles matters more than ever

In a rising market, mistakes and overpaying can get covered up. We’ve watched plenty of inexperienced buyer’s agents overpay and/or buy bad assets in recent years. They approach property buying with the unfortunate attitude (especially for their clients) that the rising market will cover their mistakes and absorb any overpayment. In a softer or uncertain market, those mistakes are exposed quickly.

Buyers are regaining leverage, but only if you know where to look

For the first time in a while, buyers are starting to get some control back. However, there’s a clear divide between A-grade properties that still perform strongly, and secondary properties where softness is appearing. This creates a two-speed market and one which has become very apparent to us in recent weeks.

Softer markets don’t mean softer markets at all price points, even in a given price bracket. As a business we are still competing for A-grade properties the same as ever. If you are buying a property in this market with no competition, the first question you should be asking yourself (or your buyer’s agent) is, why?

The biggest trap right now: waiting for the bottom

Every time the market softens, buyers think they should wait, but what usually happens is the best properties still sell, confidence returns, and competition increases again. As with share markets, trying to time the bottom is a false economy. Buying with confidence in softer markets requires experience, knowledge, and confidence.

Fundamentals matter and our due diligence process is robust which ensures our clients reap the benefits, no matter how the market is behaving.

It’s no longer about timing, it’s about selection

In this type of market, the focus needs to shift from when you buy to what you buy. You should be targeting high-demand locations, scarce property types, and assets with long-term appeal. This is more important than ever to make sure that your selection performs over the medium to long term.

Signing a contract in any market is easy - signing a contract on the right property, with the right terms, and at the right price requires experience.

Negotiation is back — but it requires skill

This is one of the biggest shifts we’re seeing on the ground. There’s more room to negotiate, but achieving a strong outcome now depends on how well you understand vendor motivation, true value, and how to position an offer strategically. It’s not simply about paying less— it’s about getting the negotiation right from the outset.

In softer conditions, mistakes are far less forgiving, and outcomes are driven by judgement, timing, and execution. Experience in reading both the market and the people involved is what ultimately determines whether you secure a quality asset on the right terms.

Periods of hesitation often present the best opportunities

Sentiment is clearly influencing buyer behaviour, but the underlying fundamentals (strong demand, limited new supply, and high construction costs) remain firmly in place. When this is combined with factors like interest rates, reduced borrowing capacity, and negative media coverage, it often creates a window where competition softens and opportunities emerge.

For buyers who are prepared and decisive, these periods can offer access to improved negotiating conditions, and more favourable outcomes than in stronger, more competitive markets.

What buyers should be thinking about

Here are some questions to ask yourself:
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1. Am I buying a quality asset, or just something that seems good value relative to yesterday’s prices?
2. Will this property still be in demand in 5-10 years?
3. What if I need to sell quickly for unforeseen reasons in any future market conditions?
4. Am I reacting emotionally or making strategic decisions?
5. Can I genuinely get the best outcome by doing this by myself, or do I need professional help?

Final thought

A softer market isn’t something to fear, it’s something to understand. With 25 years of buying experience, we’ve seen how these cycles play out and how to use them to your advantage. To this end, whilst it’s always important that you choose the right buyer’s agent, it’s absolutely critical that you do so in markets like we’re seeing now.

The buyers who succeed are those who act confidently and secure quality assets whilst others hesitate.

As always, we’re here to help so please reach out if you’d like to discuss any of the above and we look forward to seeing you around an open home soon.