Sydney downsizers enter bargain-buying window: Popular apartments drop by up to 15% — Sydney auction clearance rate at 67%

Week’s Key Focus

Several popular Sydney suburbs favoured by downsizers have recorded significant price corrections over the past year, with apartment values falling by as much as 15.2%. According to the latest Domain data, high-end areas with median prices above $1 million, including Kirribilli, Double Bay, Lindfield and Killara, have all posted double-digit declines. Experts note that rezoning proposals and uncertainty around future high-rise developments have created a “wait-and-see” sentiment in the premium apartment market, weighing on prices.

Buyer’s agents on the North Shore report that the controversy surrounding transport-oriented development (TOD) on the Upper North Shore is now affecting inner-ring suburbs closer to the CBD, with local buyers concerned that neighbourhood character may be altered—prompting many to delay purchasing decisions. Domain chief economist Nicola Powell adds that major transport upgrades, such as metro construction, have made some residents uneasy about future disruption and change. Combined with the already high price barriers in blue-chip downsizer suburbs, some owners are choosing to postpone selling, reducing turnover and weakening demand—further dragging on prices.

Premium areas such as Barangaroo have also seen corrections, with the median apartment price falling 9.1% over the past year to $4.5 million. Industry insiders say the large 2024 settlement wave of high-priced apartments in One Sydney Harbour lowered this year’s price bands and distorted the median. Other suburbs including Rozelle, Little Bay, Bondi, Inner City and St Leonards have posted drops of 7%–9%, influenced by factors such as a surge of new project launches and investors favouring lower-priced apartments.

However, for downsizers, this pullback represents a rare buying window. Buyer’s agent Rich Harvey from Propertybuyer.com.au notes that newly built luxury apartments often command $35,000–$50,000 per square metre due to soaring construction costs, yet some existing (second-hand) apartments in the current market are temporarily undervalued. “If you’re considering moving from a house into a high-quality apartment, this is a rare opportunity,” he says. “These market dips usually don’t last long.”

Auction Results Last Week

Sydney:1,572 properties were scheduled for auction, with 999 results reported. A total of 671 properties were sold, delivering a clearance rate of 67%. The total auction value reached AUD 784,302,276, and the median house price was AUD 1,670,000.
Melbourne:1,500 properties were scheduled for auction, with 1,091 results reported. A total of 718 properties were sold, resulting in a clearance rate of 66%. The total auction value reached AUD 545,369,477, and the median house price was AUD 937,000.