Rates and consumer confidence underpins Sydney’s resilient market.

The RBA's decision to keep rates on hold at today's meeting underscores the current trajectory of Australia's resilient property market. Despite prevailing high interest rates and global monetary easing trends, home values continue to rise across most capital cities, including within a 10km radius of inner-city Sydney.

Consumer sentiment, although lower compared to pre-GFC levels, has not deterred property price growth. Sydney's real estate market stands as a remarkably resilient microcosm, insulated against broader economic fluctuations. This resilience is driven by a unique interplay of factors where property ownership is deeply tied to lifestyle choices and long-term outlook to financial stability and wealth creation.

During COVID-19, there was a significant shift in how people view their homes, particularly in Sydney, where property represents a substantial portion of personal wealth. This revaluation has since led many to prioritise property investment over discretionary spending on items like electronics and retail goods. The willingness to allocate more of their monthly income towards property underscores the emotional and financial commitment Sydneysiders have towards real estate.

The allure of property ownership extends beyond immediate consumption. Buyers are increasingly factoring in not just the cost of acquisition but also the opportunity cost of not entering the market sooner. This strategic approach is evident across all price points, from mid-range homes to luxury properties where future appreciation potential plays a crucial role in investment decisions

Despite the uncertainty surrounding future interest rate movements, the housing market's outlook for 2024 remains robust, particularly in Sydney.