Opportunity or Doom: How Are the Market Conditions Affecting You?

New building approvals fell 3.6% in July, coinciding with a fifth consecutive month of declining property prices across nearly all capital cities.

According to Australian Bureau of Statistics data, the dip was primarily caused by a 4.2% drop in detached house approvals, following a sharp rise in June, while apartment and townhouse approvals dipped slightly by 0.4%. Despite the monthly decrease, overall approvals remain 6% higher than in July 2025. However, the slowdown adds pressure on the federal government, which is already trailing behind its goal of delivering 1.2 million new homes by mid-2029.

Market data from Cotality indicates that national home values slipped 0.9% in August, bringing the national median price to $912,885. Price reductions were widespread, affecting 93% of suburbs nationwide. Darwin stood out as the sole capital city to record growth, rising 0.6% to a median value of $647,000.

Market momentum has been slowed by broader economic pressures, including rate hikes, geopolitical instability, and proposed changes to property tax concessions.

Capital City Value Changes (August)

• Sydney: Down 1.4% (Median: $1,200,000)
• Canberra: Down 1.1%
• Melbourne: Down 1.1%
• Brisbane: Down 1.0%
• Darwin: Up 0.6% (Median: $647,000)

Cotality research director Gerard Berg noted that while premium inner-city markets led the initial downturn, price softening is gradually spreading to middle- and outer-ring suburbs. While entry-level buyers may need to wait for lower prices to reach peripheral markets, Berg advised active purchasers intended on long-term ownership against waiting for the absolute market bottom, suggesting reduced competition currently works in buyers' favor.

Addressing the downturn, Shadow Treasurer Tim Wilson criticized the government's economic policies and potential tax adjustments, attributing the fall in property wealth to persistent inflation and rising interest rates.

What this means if you are buying

A softer market can shift the balance towards buyers. With fewer people competing for the same property, you may have more room to negotiate on price and on the terms of the contract itself.

That room only helps if you know what you are agreeing to. Having the contract reviewed before you make an offer means any concerns can be raised while you still have leverage.

Points we commonly look at during a contract review include:

• The length of the settlement period and whether it suits your finance and moving plans
• The deposit amount and when it is payable
• Any special conditions added by the vendor
• What is included in the sale, such as fixtures and appliances
• Easements, covenants or notices that affect the property

Tip: Send us the contract as soon as you are interested in a property. We turn contract reviews around within 24 hours, so you can negotiate with confidence before you commit.

What this means if you are selling

When prices are easing, campaigns can run longer and buyers tend to look more closely at the details. A clear, accurate contract helps keep your sale on track.

In NSW, a contract of sale must be ready before your property is marketed. Starting early means your agent can begin the campaign without delay, and any issues with the title can be dealt with before a buyer finds them.

Note: If you can, contact us before you choose an agent. Preparing the contract early gives you time to resolve anything unexpected in the searches.

Buying your first home

If you are a first home buyer, you may be eligible for a stamp duty exemption or concession in NSW, depending on the purchase price and the type of property. The thresholds change from time to time, so it is important to check your eligibility before you exchange.

Info: We check first home buyer stamp duty eligibility as part of your conveyancing, so you know what applies to you before you commit.

Frequently asked questions

Is now a good time to buy property in Sydney?

That depends on your own finances and plans, and a mortgage broker or financial adviser is best placed to help with that decision. The market data shows that competition has eased in many areas. Whenever you buy, our role is to make sure the contract protects you.

Can I negotiate the contract when the market is softer?

Terms such as the settlement period, the deposit and any special conditions can often be negotiated before exchange. We review the contract, explain the key terms and raise any changes with the agent or the vendor's solicitor.

What is the cooling-off period in NSW?

For most residential purchases in NSW, there is a cooling-off period of five business days after exchange. It does not apply to properties bought at auction. If you withdraw during the cooling-off period, you forfeit 0.25% of the purchase price.

How quickly can you review a contract?

We turn contract reviews around within 24 hours, so you can make decisions quickly in a changing market.