Economic and
Housing Policy News
This week in February has seen major decisions being made on economic and political policy in the Sydney region which will affect the real estate market. In this edition of the market wrap, we will highlight key property market insights, unpack the RBA’s rate cut decision, and delve into important housing policies from the NSW Government and Ku-ring-gai Council.
Sydney Property Market Insights
The number of property listings has continued to rise strongly throughout February, reflecting robust confidence from both sellers and buyers. For the week ending February 16, 2025, CoreLogic reported an auction clearance rate of 67.2% for the Sydney region, marking a 12.75% increase from the previous fortnight’s results. Additionally, the number of properties going to auction in the Sydney region has risen by 29.2% compared to the previous week, indicating ongoing strength and confidence in the market.
The Marshall Group Specific Insights
At The Marshall Group, we’ve seen excellent attendance at open homes this February. Currently, we have 49 listings on our website and have successfully sold 21 properties this month with three selling over $6 million. In 2025, our property management team has already leased 39 properties.
If you’re considering leasing or renting your property, our friendly property management team is here to assist you. Our sales agents are also available to provide a detailed appraisal of your property and insights into current market trends.
Economy Update
On Tuesday, February 18, 2025, the Reserve Bank of Australia (RBA) announced its decision to cut interest rates for the first time since November 2020. The new cash rate is now set at 4.1%, which will provide some relief for homeowners with mortgages, slightly easing home loan repayments. However, the RBA has cautioned that if monetary policy is eased too aggressively, inflation could settle above the midpoint of the target range.
NSW Government’s Low and Mid-Rise Housing
Policy Update
On February 21, 2025, the NSW Government unveiled stage two of its planning reforms aimed at facilitating the construction of low and mid-rise housing within 800 meters of town centres and train/light rail stations. Low to mid-rise housing includes dual occupancies, terraces, townhouses, apartments, and shop-top housing, ranging from one to six storeys in height.
The reforms, set to take effect on February 28, 2025, will impact 171 town centres and stations across Sydney, Central Coast, Lower Hunter, Newcastle, and Illawarra-Shoalhaven. The policy is expected to deliver 112,000 homes statewide over the next five years, contributing to addressing the cost-of-living crisis by offering affordable, sustainable living options. This announcement is part of a broader plan under the National Housing Accord to build 377,000 new homes near transport hubs, town centres, and essential services by 2029.
For more information please see: Low and Mid-Rise Housing Policy | Planning
Update on Transport Orientated Development in Ku-ring-gai Council Area
The Ku-ring-gai Council’s Transport-Oriented Development (TOD) Zoning Plan is designed to promote residential development near key transport hubs, such as train stations, to foster sustainable growth. The TOD plan will cover 160 hectares of land stretching from Roseville to Gordon. This initiative aligns with the NSW Government’s TOD policy, which aims to create connected, sustainable cities that support the needs of current and future generations.
In 2024, the Ku-ring-gai Council proposed five development scenarios for the TOD zone to the local community for consultation. These scenarios considered various factors, such as the preservation of Heritage Conservation Areas (HCAs), allowable building heights, housing distribution across the four postcodes, environmental impacts, and the TOD zone’s boundaries.
Community consultation on these scenarios closed on December 17, 2024, and the council will review this feedback in March 2025. If a preferred scenario is selected during the council meeting, the council will request the NSW Government’s approval to formally exhibit it as a planning scheme, replacing the current NSW Government TOD policy. Further community consultation will follow as part of this process.
If you’re considering buying, selling, or investing in 2025, please contact The Marshall Group at our offices in Lindfield, Gordon, St Ives or Wahroonga.