Sydney Property Weekly | RBA Lifts to 4.60% as Sydney Values Fall Again

Sydney owners are entering October with a materially different set of conditions from only a week ago. The Reserve Bank has raised the cash rate again, Sydney dwelling values fell further in September, and final auction results remain below 50% despite a lift from the previous week.

For owners, the useful question is not whether the market is simply “good” or “bad”. It is how the latest finance settings, buyer capacity, comparable sales and rental evidence change the decision for a particular property.

The cash rate is now 4.60%

The RBA increased the cash rate target by 25 basis points to 4.60% on 29 September, effective 30 September. The decision was unanimous. The Board said inflation remained too high and that recent inflation outcomes had been stronger than expected.

Since that decision, the ABS has reported that annual CPI inflation rose to 4.0% in August from 3.5% in July, while trimmed mean inflation held at 3.6%. The RBA’s October Financial Stability Review also found that most mortgagors remain resilient overall, although financial pressure has increased for some households.

The RBA did not commit to another increase, but said it would raise the cash rate further if needed. The next Monetary Policy Board meeting is scheduled for 2–3 November, with the decision due on 3 November.

Sydney dwelling values fell another 1.4% in September

Cotality’s September Home Value Index recorded a 1.4% fall in Sydney dwelling values. Sydney values were 8.6% below their February peak and 7.0% lower than a year earlier.

Transaction activity has also weakened. Cotality estimated that Sydney home sales over the latest three months were 26.5% lower than a year earlier. Across the combined capitals, new listings were 9.2% lower year-on-year, but total advertised inventory was 23.1% higher because homes were taking longer to sell.

That combination matters for sellers: fewer fresh listings do not necessarily mean less competition. Buyers can still have more choice when existing stock accumulates.

Final auction clearance improved, but stayed below 50%

For the week ended 27 September, Sydney’s final auction clearance rate was 48.4% across 774 auctions, up from 46.2% across 569 auctions the previous week.

The lift is useful context, but it does not change the broader message that sellers are operating in a selective market. This week is also unusually quiet because of the NSW Labour Day long weekend: around 353 Sydney auctions are scheduled for the week ending 4 October, down 54.4% from last week and 30.9% from the same week a year ago.

Because holiday weeks distort volumes, owners should avoid reading too much into one weekend. Contract requests, repeat inspections, written offers and bidding depth remain more useful property-level evidence.

Rental conditions remain mixed rather than uniformly weak

The latest SQM Research weekly asking-rent data, for the week ending 28 September, put Sydney’s combined asking rent at $913.76 per week, up 0.4% over the rolling month and 5.2% over the year. Houses were at $1,148.10 per week, up 1.5% over the rolling month, while units were at $753.72, down 0.6% over the rolling month.

The latest city-wide vacancy rate release remains August at 1.7%. Together, the figures show why landlords should avoid a blanket city-wide assumption: house and unit conditions are diverging, and achievable rent still depends on suburb, property type, presentation, direct competition and first-week enquiry.

September tenancy changes are now part of normal operations

NSW tenancy protections that commenced on 21 September are now in force. Property managers and landlords should already be using updated procedures for files involving domestic abuse, including sensitive information, advertising photos and videos, locks, damage, co-tenant notices and tenancy databases.

This is now an operating requirement rather than an upcoming change.

General market information only. It is not financial, legal, credit or valuation advice.