The moderation of interest rate increases towards the end of last year proved to be pivotal, fostering a more stable purchasing environment and encouraging buyers to re-enter the market with renewed enthusiasm. This appears to be underpinned by the widespread belief that prices will rise as rates stabilise. Buyers are ready to seize the right opportunity, having secured financial advice and established their borrowing capacity.

Vendor confidence is robust, reflected in slightly elevated stock volumes compared to the previous year. This uptick is primarily driven by the burgeoning demand from second- and third-home purchasers. Young families are also a driving force, seeking to establish themselves in the vibrant and well-connected communities of the Inner West.

Premium-quality homes in coveted areas continue to command strong interest and performance. Notably, Williamstown remains a hotspot for young families drawn to its diverse lifestyle amenities, including an array of dining establishments, bars, cafés and entertainment options.

Despite indications of stabilisation, concerns persist in the market regarding building costs, especially for those contemplating significant renovations or new constructions. While cosmetic enhancements remain popular, apprehension surrounding structural work expenses has led many homeowners to opt for relocation over extensive refurbishment. This is fuelling the ongoing demand for fully renovated, newly built and turnkey properties.

There has been a notable shift away from high-density apartment builds towards medium-density developments, particularly townhouses.