Many homeowners opt to sell their property themselves to avoid paying agent fees and commissions. However, this decision is far from straightforward. Skilled real estate agents are professionals who navigate the complexities of property transactions with ease, making the process second nature to them.

While it is indeed possible to sell a property without an agent, don’t be misled into thinking that you’re saving a significant amount of money. There’s a clear reason why most Australians prefer to use real estate agents: the true costs of selling on your own can end up being higher than anticipated.

Sydney Property Market Forecast for 2024-25

The real estate market in 2023 experienced two distinct phases. Prices surged in the first half of the year but then slowed down, leading to modest growth as we move into 2024. What are the major banks predicting for the remainder of the year?

The average forecasts for national house prices, based on the Q2 survey, have been slightly adjusted to 2.5% growth over the next 12 months and 3.2% over the next 2 years. The strongest growth in house prices is anticipated in Western Australia (5.6%), South Australia (4.8%), and the Northern Territory (2.8%) in the coming year. Other regions are also expected to see price increases, though at a slower pace than previously forecasted. Tasmania (0.9%), Victoria (1.1%), and the Australian Capital Territory (1.3%) are expected to lag behind.

Looking ahead 2 years, house prices are predicted to rise nationwide, with Western Australia (5.5%) and South Australia/Northern Territory (5.1%) leading the charge, while Victoria will trail with a 2.3% increase. Most property experts believe that rental markets are still undersupplied in their areas, which is why rent growth forecasts for the next 1-2 years remain strong at 3.5% and 3.8%, respectively. Rent increases are expected in all states over the next year, with acceleration in Victoria, South Australia, and the ACT, though slowing in other areas.

The proportion of First Home Buyers (FHBs) in new property markets rose to 33.5% in Q2, but this is still below the average of 38%. The share of sales to owner-occupiers (excluding FHBs) fell slightly to 38.5% from a peak of 42.2% in Q1, while the share of sales to domestic investors remained steady at 17.7%, varying from 22.5% in South Australia to 13.3% in Victoria in Q2. About 76% of property professionals identified high construction costs as a major barrier to new housing projects, especially in New South Wales (82%) and Victoria (79%). Delays in obtaining planning permits and Labor shortages were also noted as significant issues.

With no additional rate hikes in Q2 and interest rates still considered restrictive, the number of property professionals citing interest rates as a key barrier remained almost unchanged at 40%. In established housing markets, buying activity continued to be dominated by owner-occupiers (excluding FHBs), with their market share holding steady at 44.2%, slightly above the average of 43.5%. Local investor participation increased to 17.5%, though it remains below average. One-third of buyers in this segment were FHBs, with a significant portion purchasing for owner-occupation. Rising interest rates were again identified as the primary constraint for buyers in established markets, particularly in New South Wales and Victoria. Conversely, a lack of stock was the main issue in Western Australia, Queensland, and South Australia, while price levels were more of a concern in New South Wales and South Australia.

Foreign buyer activity in new Australian housing markets decreased to 8.9% in Q2, down from 10.0% in Q1 and below the survey average of 9.1%. This marks a decline to about half of the peak levels seen during late 2014/early 2015. The decrease was observed across most key states except New South Wales, which remained the top choice for foreign buyers with a 15.0% market share, up from 12.0%. Foreign buyer share fell in other states, with Queensland at 4.8% (down from 7.6%), Victoria at 7.4% (down from 10.0%), and Western Australia at 7.5% (down from 11.0%).

In established housing markets, the foreign buyer shares slightly decreased to 3.7% in Q2 from 3.8% in Q1, remaining below the average of 5.1%. The share increased in Victoria (5.1% from 3.8%) and Western Australia (3.9% from 2.2%), but fell in Queensland (2.0% from 4.0%) and New South Wales (3.3% from 4.5%). Despite these fluctuations, foreign buyer market share remains below the average in all states.