8 Trends for the NSW Property Market in 2023

2022 has been another HUGE year for the NSW and Sydney property markets.

As life continued to return to (almost) normal across the state, property prices reached incredible highs early on, before rising interest rates saw a slight easing in the market towards the back half of the year.

Now, as we look to 2023, we’re seeing several trends and predictions beginning to take shape in the NSW property market. So today, we’ve decided to share our predictions on property market trends around buying and investing in real estate.

Of course, this is just general information and if you want more tailored advice for your property goals in 2023, our team of Buyers Advisors are very happy to have a chat.

So, let’s get started on the 8 trends we foresee for the NSW property market in 2023.

1.   First home buyers are going to be much more active

We anticipate more NSW first home buyers will enter the market early in the year, due to the recent stamp duty reforms passed by the NSW Government.

These reforms allow first home buyers that purchase a property up to $1.5 million to pay an annual land tax rather than upfront stamp duty – meaning those who elect to pay the land tax can now be more competitive with their deposit and offer, as they no longer have to factor a lump sum stamp duty payment into their upfront costs.

2.   Apartment prices will rise throughout 2023

The new stamp duty reforms, along with an increase in immigration, will likely drive up the price of apartments in prime blue-chip locations – as well as those close to the city, trains and universities.

3.   There will be a growing polarity in the Sydney property market

Right now, the NSW real estate market is a bit volatile, but we predict that in 2023, we will see some areas regain momentum, while others will continue to drop – causing a price and demand polarity in the market.

Contrary to popular opinion, the Sydney property market is not actually one large, uniform market. Rather, it’s made up of many different segments and ‘micro-markets’, which brings us to the next trend…

4.   Micro-markets are going to be much more obvious in 2023

That’s right. We believe the Sydney property market will be quite clearly segmented into many smaller markets in 2023. This will be due to many different types of buyers having a greater influence on the demand for property across several different areas of the city.

5.   There will be more buyers overall entering the market in 2023

Many people looking to purchase their own homes in Sydney and NSW have been sitting on the sidelines throughout 2022, waiting to see what will happen with interest rates.

However, as rates continue to rise, they’ll realise that the longer they wait, the smaller their borrowing capacity will potentially become. So, we expect more buyers to enter the market and take action before interest rates likely rise even further throughout 2023.

6.   The number of investors in the market will also increase

We believe that 2023 is going to be another positive year overall for the property market, meaning we will see more investors come in to capitalise on the opportunities available.

History shows that real estate is a high-quality and stable investment that provides great returns over time – even during the height of the pandemic. Therefore, investors see it as a safe and comfortable arena, especially when compared to stock and cryptocurrency markets.

As some areas around Sydney continue to trend downwards, this will create several opportunities for savvy investors to buy in and watch their investments grow as the market inevitably starts to rise again soon.

7.   Property stock levels are still going to be very tight in 2023

As it stands, we don’t see a huge increase coming in property stock levels in 2023 – especially when it comes to A-Grade properties.

However, there are a lot of off-market and pre-market opportunities right now. Some vendors prefer to keep their sales private or simply test the market before making a full commitment – meaning these opportunities are always popping up around Sydney and will continue to do so into 2023.

This is where a professional and experienced Sydney Buyers Agent can really come in handy to help you source the right property for your situation – which leads us to our final property trend for 2023…

8.   More buyers and investors are going to use a Buyers Agent

Buyers and investors alike are starting to see the importance of getting experienced help when it comes to a significant investment like property – and with so many off-market and pre-market opportunities now available, more people will decide to take advantage of a Buyers Agent as the fear of missing out inevitably kicks in.

Of course, with a constantly changing property market and so many trends to keep an eye on in 2023, the benefits of hiring a NSW Buyers Agent right now are simply unquestionable.

That’s why Brady Marcs is here for you.

Brady Marcs is your trusted Buyers Agency in Sydney and NSW

In today’s extremely competitive real estate market, buyers need a dependable and empathetic Buyers Agent to help them get in, secure the best deal, negotiate on their behalf and represent their interests.

Brady Marcs Buyers Advisory is an experienced and dedicated Buyers Agency with a genuinely passionate team who guide you through the entire buying process to find your ideal property. From new home buyers to seasoned property investors, our integrity and expertise are for everyone, every goal and every property.

Contact us today to see how we can help you to take advantage of the property market in 2023.

We’re here for you when you’re serious about buying and beyond.

PLEASE NOTE: The information in this article is general information only and should not be considered financial advice. For financial advice tailored to your unique circumstances, please seek the services of a professionally qualified Financial Advisor.