Sydney home sellers are facing their most favourable selling conditions since mid-2024, with vendor discounts tightening to some of the lowest levels seen in years. According to reporting by the Sydney Morning Herald, homeowners now need to reduce their asking price by only a modest 2.9 per cent on average to secure a deal, marking the smallest adjustment since June last year.
Latest research from Cotality shows the average vendor discount for detached houses sits at just 3.2 per cent as of October, edging slightly up from September’s 3.1 per cent but still well below historical norms. The last time discounts hovered at this level was July 2023. For units, price reductions are even lighter at 2.5 per cent, a benchmark not reached since before the pandemic in 2017.
Why Discounts Are Shrinking
Eliza Owen, Head of Residential Research Australia at Cotality, says the reduced discounting reflects a market still tilted in favour of sellers. Strong demand driven by earlier expectations of interest rate cuts and expanded first-homebuyer support, combined with low stock levels, has kept competition firm.
With Sydney house prices up 6.3 per cent over the past year to a median of $1,751,728, and units rising 2.7 per cent to $840,422, many sellers feel confident holding their price. Owen adds that today’s discounting levels may also indicate that vendors have become more realistic and willing to meet the market, especially in an environment where prices have been steadily rising.
However, she cautions that the selling environment could grow more challenging in 2025, with expectations of further interest rate cuts now pushed back to late next year. Shifting monetary policy may cool buyer sentiment as borrowing conditions remain tighter for longer.
Where Sellers Are Winning and Where They’re Not
Some Sydney suburbs are proving exceptionally favourable for sellers:
- Mount Druitt – 1.1% median discount
- St Marys – 1.4% median discount
These ultra-low discount rates indicate buyers are paying very close to the asking price, underscoring strong, sustained demand.
By contrast, deeper discounts are being offered in:
- Blue Mountains – 4.8%
- Ku-ring-gai – 4.4%
- Leichhardt – 4.4%
These pockets may be dealing with softer sentiment, less urgency from buyers, or greater price sensitivity.
Market Forces Shaping Seller Behaviour
Beyond interest rates and supply constraints, regulatory changes are influencing market confidence. Buyers’ agent Chris Curtis notes that the NSW Government’s Transport Oriented Development (TOD) reforms are prompting some homeowners, particularly in areas like Lindfield, to sell earlier amid uncertainty about future zoning and density outcomes.
Curtis warns that rising investor activity and constrained supply are creating heightened competition, particularly for first-home buyers relying on government assistance.
On the lower north shore, Belle Property Mosman’s David Benjafield observes that while days on market have stretched slightly, sellers are still achieving near-asking prices due to chronically low stock. Many properties are trading off-market as owners “test the waters” before a full campaign in early 2025.
Advice for Buyers and Sellers
Agents are unanimous: the final weeks of the year remain a strong window for vendors, although time is running short to launch a full campaign. Sellers are encouraged to:
- Prepare building and pest reports early
- Ensure the home is styled and presentation-ready
- Position their property competitively within the current tight supply landscape
For buyers facing intense competition, preparation is crucial. Pre-approved finance, early due-diligence checks, and strong relationships with local agents can provide access to opportunities before they hit the open market.
In Marrickville and the inner west, Raine & Horne’s Filippo D’Arrigo says discounting is minimal because demand remains robust despite dwindling late-year stock. “If you’re a seller, it’s pretty good now,” he notes, an assessment shared across much of Sydney.
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