Everything Australian Property Buyers Need to Know About Real Estate Micro-Markets in 2023

If you’ve been listening to the news lately about NSW or ACT Real Estate, you’ve probably heard a common theme: “The entire Sydney Real Estate market is plummeting!” or “Canberra’s property values are dropping at a rate never seen before.

Sound familiar?

Well, despite all the hype, did you know that it’s not as simple as one single property market? What we mean is, you can’t just lump “Sydney real estate” into one group. You can’t just say “Canberra property” and know everything you need to about making effective buying decisions.

Why? Because there are so many ‘micro-markets’ within each.

So, to say that an entire market is experiencing a single trend is a misleading assumption – one that, if you’re a property buyer, could lead to some potentially misinformed decisions when investing.

In our recent article, 8 Trends for the NSW Property Market in 2023, we predicted that this little-known phenomenon called “micro-markets” would become far more obvious this year.

It turns out that this trend has come true, however, most property buyers are still quite unaware of its impact.

So, what are “Micro-Markets” and more importantly, why should property buyers care?

Well, in today’s article, that’s exactly what we are going to uncover as we take a deep dive into what this really means and how Sydney, Canberra or Regional NSW property buyers can use micro real estate markets to their advantage.

What is a Property Micro-Market?

A micro-market in real estate is essentially a small segment within a broader property market that operates independently of surrounding trends. In other words, just because the Sydney housing market or Canberra housing market is – as a whole average – moving in one particular way doesn’t mean there aren’t smaller sectors within these cities that are doing something completely different.

Take, for example, the Greater Sydney market where house values fell in 98.7% of suburbs last year.

From this, you’d naturally assume that this single summary tells you all you need to know about real estate market performance.

However, that’s not how property markets actually work

You see, in that very same period, prices in specific Sydney suburbs like Kirrawee and North Epping actually rose 19.5% and 18% respectively.

If you listened only to the first, overall statistic (that the media often touts), you would have missed a potential opportunity to buy in these suburbs.

This happens quite often all over Sydney, NSW, Canberra and the ACT. As a property buyer, you can’t assume that what’s happening overall is happening in individual segments.

How do micro real estate markets occur?

In reality, there is a whole list of influential factors when it comes to micro-markets.

They may pop up due to particularly high-performing local school catchments or maybe because of stand-out infrastructure and amenities such as hospitals or airports. Even high-quality transport options like trams and train lines can have a major impact on the demand and supply of local properties.

The point is that whatever the specific reason, collective property markets like Sydney and Canberra are so large and diverse that to look at them holistically is to miss out on many hidden property buying opportunities.

But do micro-markets only occur geographically?

No, and that’s what makes them so fascinating!

Micro real estate markets can emerge in all sorts of shapes and sizes.

Think for a moment about the highly saturated first home buyer market where buyers compete for the majority of all sub-$1.5 million properties. This too becomes its own micro-market!

Why? Well, because of the enormous levels of demand within this price category and the relatively inflexible wallets of potential buyers, this micro-market may be uniquely more volatile to changing economic circumstances in comparison to others.

So, as a basic rule of thumb, any smaller section of the property market that moves on its own terms is probably a micro-market.

Now, much of this information may come as no surprise but the real question then is…

Why should property buyers care about micro-markets?

Well, we have all seen the media headlines:

Australia records its biggest EVER drop in house prices as values in one city plunge 13 per cent – and we are a long way from the bottom

IMF sees potential for imminent ‘sizeable’ bust in Australia’s housing market

It’s so easy to get caught up in all the mainstream hysteria.

The truth is that while the media often refer to the overall “Australian market”, the “Sydney market” or the “Canberra market” as blanket terms, this rarely tells the whole story, and it can get in the way of making well-informed investment decisions.

So, instead of trying to make sense of over-simplified headlines, we recommend consulting with top-quality Buyers Agents like Brady Marcs who have their fingers on the pulse and possess specialised industry knowledge that goes far beyond the headlines.

Buyers Agents can give you all the insights into micro real estate markets

With us as your trusted advisors, aspiring property buyers in Sydney, regional NSW or Canberra will be sheltered from the media misinformation and be one step closer to capitalising on the various opportunities micro-markets have to offer.

The moral of the story: sometimes it pays big to think small.

Brady Marcs is your trusted Buyers Agency in NSW and the ACT

In today’s extremely competitive real estate market, Property 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 first home.So, if you’d like to have a bit of a chat, throw around some ideas or simply talk to an experienced professional about your options, contact us today to see how we can help you.