Buyers are keenly aware that the property market in Sydney is currently changing.
Changes in interest rates, low stock, stronger rental demand and more diversity in buyers continue to shape where the market is headed.
Buyers are becoming more discerning in their purchases, with their expectations around budget, long-term resilience, yield and capital growth potential all coming to the forefront.
Buyers are prepared to be cautious, taking in all the different elements and are willing to wait until what they perceive as a better time.
First home purchasers are a great example of this, more readily postponing purchases until there is more clarity in the market as a whole.
Buyers are waiting to see if new support initiatives from the Federal Government will be announced, and waiting for already announced changes to come into effect, such as the overhaul of Stamp Duty in NSW.
At the same time, buyers are also aware that borrowing capacity will continue to decrease as interest rates rise and lenders remain cautious and measured in their numbers.
Experienced buyers know that history shows that we go through cycles, and every cycle eventually will move to the next phase and ultimately correct itself.
With this in mind, buyers know that opportunities are there for those who know where to look and especially for those who can see the potential for properties in terms of capital growth and local development.
Less competition means buyers expect greater willingness from vendors to negotiate and find a mutually beneficial outcome – certainly more than vendors have needed in the past few years.
These expectations are around price and making the terms of sale and finer details of the contract work for them.
This can mean a better outcome for both buyers and vendors, helping to make the timing and process smoother.
As auction clearance rates remain less predictable than in previous years, having held consistent through Covid, buyers expect vendors to entertain pre-auction offers more readily in exchange for certainty and clarity. Post-auction negotiations are also high on the agenda if a property is not sold at auction.
Buyers expect price guides to have more stability, with fewer surprise factors influencing the price and surprise auction results.
This has meant buyers are approaching the market with greater confidence and expectations of transparency, which is especially helpful in securing finance, and better planning for real costs and budgets.
This increased certainty can only increase the readiness of buyers to make a purchase and the ability to move quickly when needed.
Investment buyers are also increasingly focused on the market, with solid demand and low stock for rental properties, combined with increasing rental yields in many local areas making this segment even more attractive and less influenced by fluctuating interest rates.
The key, however, is for vendors to present resilient properties with great features that will stand the test of time and suit a broad segment of renters.
Whether buying for a primary residence or as an investment, universal factors hold even more weight.
Factors such as aspect and outlook, proximity to roads and neighbours, natural light, and the flow and layout of the home all make a difference.
External factors are also important: neighbouring developments, strata considerations, access to transport hubs, local schools, shops and parks, etc, all make a significant impact on the value of an opportunity to a buyer.
The bottom line is buyers are slowing down and taking time to do due diligence and discern more about what is and is not a good opportunity.
Buyers are engaging professional support to help guide and support them – lawyers, solicitors, financial advisors, mortgage brokers and buyers agents.
Engaging with these professionals can help spotlight a property’s right features and find buyers with whom agents may not otherwise have access.
In the same way that agents can present off-market opportunities to buyers and properties that are harder to find, buyers agents can connect agents to private buyers that agents would not otherwise have less access to and visibility around.
The changing market does not necessarily mean buyers aren’t present. They are only more discerning and finding the right tools and approach to navigate the changing landscape and shift in strategy.
Agents need to understand the different factors buyers are juggling and listen closely to the specific and unique needs buyers are presenting.
