The RBA's October Financial Stability Review says most mortgage borrowers remain resilient despite higher rates and falling housing prices. Around 2% of variable-rate owner-occupier borrowers are estimated to be in cash-flow shortfall, while less than 1% of borrowers are currently in negative equity. Even with a further 20% fall in housing prices, the RBA estimates around 5% of mortgages would move into negative equity. For Sydney owners, the figures point to broad balance-sheet resilience, but also reinforce the importance of allowing for higher financing costs and property-specific cash flow.
NSW has declared 15 more Housing Delivery Authority projects as State Significant Development, including 14 in metropolitan Sydney. If lodged and approved, the projects could deliver 4,346 new homes. The HDA pipeline now includes 499 State Significant Development proposals with potential for more than 154,000 homes. For Sydney owners and investors, this is a useful supply-side signal, although declaration alone does not mean the projects are approved or under construction.
More than a quarter of Australian homes listed for sale have now been on the market for six months or longer, according to Real Estate Industry Partners data reported by the Australian Financial Review. Nationally, 28% of listings have been on the market for more than 180 days; the share is 18% in Sydney and more than 21% in Melbourne. The report points to higher borrowing costs and more cautious buyers as sellers face a slower, more price-sensitive market. For Sydney vendors, the figures reinforce the importance of realistic pricing and adjusting quickly when buyer feedback shows a property is not meeting the market.
Changes to the after-tax treatment of capital gains are influencing how Australian investors think about asset allocation, according to an Australian Financial Review analysis by Damien Boey. The article argues that changes to the capital-gains framework can alter the relative appeal of long-term growth assets versus income-producing investments, making after-tax returns increasingly important when comparing strategies. For residential property investors, tax settings are only one part of the return equation. Rental performance, vacancy, operating costs and day-to-day management can also materially shape the outcome of a long-term investment. YAY Real Estate's Sydney property management service helps landlords keep those fundamentals working effectively while their broader investment strategy evolves.
Two house-sized four-bedroom apartments at a Billyard Avenue development in Elizabeth Bay sold on the same day for $20.5 million and $19.5 million. Both buyers were retirees from Sydney’s eastern suburbs, highlighting continued demand from downsizers for premium, low-maintenance apartments with generous space and harbour-side amenity.
Sydney auction clearance rate at 53% in preliminary Saturday results
Domain’s preliminary Sydney auction figures for Saturday 3 October show 521 properties scheduled for auction, with 307 results reported and 162 sales recorded. The preliminary clearance rate is 53%, with 87 withdrawals and 58 properties passed in. Reported sales total $125,039,555 and the median sale price is $1,312,500. With a substantial number of results still outstanding, these figures should be treated as preliminary and may change as further results are reported. The current result points to a selective spring auction market where realistic pricing and property-specific demand remain important.
Domain Research says buyers entering spring are becoming more deliberate about the homes they want, with search behaviour increasingly centred on flexibility, functionality, lifestyle and space rather than broad market conditions alone. The pattern varies by city, but for Sydney sellers the practical message is clear: presentation and pricing still matter, yet buyers are also scrutinising how well a property fits day-to-day living. Homes with usable layouts, adaptable spaces and a clear lifestyle proposition may be better placed to attract attention in a more selective market.
The NSW Government has finalised the Coffs Harbour Jetty Foreshore rezoning, allowing a mixed-use waterfront precinct with around 250 new homes and 200 tourist accommodation rooms. The final plan also includes a 3% in-perpetuity affordable-housing dedication or monetary contribution, new public open space and building heights of two to six storeys. While the project is regional rather than Sydney-based, it is another example of NSW using government land and rezoning to add housing supply, with future delivery still dependent on subsequent development approvals and construction.
