Sydney’s housing prices have slowed to a near standstill, registering the weakest growth among Australia’s major cities. The latest data show a 0.1% increase in dwelling values over the past 28 days, raising fresh concerns over the city’s market performance.
The city’s auction market is also showing signs of fatigue, with clearance rates dipping below 60% for a second consecutive week—well below figures seen in other capitals.
Sydney Lags Behind in National Housing Trend
Sydney’s residential property market has recorded the slowest growth across Australia’s five major capital cities, according to the CoreLogic daily dwelling values index. Over the 28-day period ending in early April, Sydney’s housing values rose by just 0.1%, the lowest among the capitals surveyed.
In comparison, Melbourne saw a 0.6% increase in values, followed by Adelaide at 0.7%, Brisbane at 0.3%, and Perth at 0.3%. The combined capital city average stood at 0.3%, underscoring Sydney’s below-average performance.
This stagnation marks a notable shift from previous months, where Sydney often led in price momentum. The figures suggest a broader cooling in the city’s property market, which has long been one of the most competitive and expensive in the country.
Auction Clearance Rates Reinforce Slowing Demand
Auction data further confirms the slowdown in Sydney’s housing market. According to CoreLogic, the city’s final auction clearance rate was 59.9% last week—remaining below the 60% threshold for the second week running. This figure contrasts with Melbourne’s 64.1% and the combined capital cities’ average of 61.8%.
Auction clearance rates are a key short-term indicator of housing market strength, reflecting both buyer confidence and the balance between supply and demand. A rate below 60% typically signals a softening market and suggests that a growing number of vendors are unable to sell under the hammer.
The current trend in auction outcomes follows a broader moderation in demand, potentially linked to tighter borrowing conditions, subdued wage growth, and ongoing affordability challenges for buyers in the city.
Market analysts continue to monitor the situation closely, although some have noted that interest rate cuts forecast by financial markets could influence housing activity later in the year.
For now, Sydney’s standing as the nation’s housing leader appears under pressure, with other cities showing comparatively more robust price movements and buyer engagement.
