Sydney’s prestige property market has kicked off 2025 with strong momentum, as award-winning Raine & Horne Double Bay/Bondi Beach successfully exchanged 11 properties between 16 and 23 February.

This surge in sales coincides with significant legislative changes, including the upcoming April 1 ban on foreign property buyers and the density changes in NSW, which are driving market activity into autumn.

Mr Ric Serrao, Principal of Raine & Horne Double Bay/Bondi Beach, stated that the regulatory changes—rather than the February interest rate cut—are helping to fuel demand in Sydney’s Eastern Suburbs.

Mr Serrao, ranked regularly among Australia’s top real estate agents, revealed his office completed 11 property exchanges in the third week of February and is expected to exchange approximately $120 million worth of properties this month.

“We’ve secured excellent stock in prime locations, and despite broader market uncertainty, we’re tracking towards our strongest quarter in five years,” he said.

“That’s significant, considering the boom of 2022 during COVID-19. The last quarter has been even stronger, particularly for the prestige and newly built turnkey property segments.”

High-profile sales highlight market strength

Recent high-profile sales reflect this strength. An off-market transaction on the exclusive Ben Buckler peninsula in North Bondi achieved nearly $12 million—well above the vendor’s initial expectation of $10 million.

“This client initially planned to buy at $5 million with some of the sales proceeds, but now I’m showing her properties around $7 million because she has extra cash. In this case, interest rates reductions have no impact on her decision-making,” Mr Serrao said.

Buyer activity remains high despite potential market distractions in autumn such as Easter, the Jewish and ANZAC holidays and the possibility of a federal election.

“Properties that were previously difficult to shift are now attracting strong buyer interest,” Mr Serrao added. “However, we are still a little anxious about April and all the distractions. But for now it’s all systems go.”

Foreign buyer ban now adding fuel to the buying urgency

While interest rate cuts may drive demand for entry-level investment properties, the impending foreign investment restrictions are having a more significant impact on prestige markets in the Eastern Suburbs, noted Mr Serrao[i].

Announced on February 17, the changes will temporarily ban foreign persons, including temporary residents, from purchasing established dwellings for at least two years starting April 1, 2025, unless specific exemptions apply.

“We’re seeing more temporary residents looking to buy before the deadline, particularly from Asia,” Mr Serrao said. “There’s a misconception that non-residents from Asia are driving demand in our market, but most buyers hold temporary residency and want to secure properties before the restrictions kick in.”

NSW’s low and mid-rise housing policy reshapes market

According to Mr Serrao, another game-changing policy is the NSW Government’s Low and Mid-Rise Housing plan[ii], announced on 23 February and which took effect on February 28. Designed to increase housing density within 800 metres of transport hubs and town centres, the new policy aims to deliver 112,000 new homes across the state.

“The changes in property regulations are significant in certain areas and highly relevant,” Mr Serrao said. “For instance, if you own land with R2 zoning, you previously could only build two strata semis. However, under the new regulations, you will have the opportunity to construct Torrens-title properties and small apartment blocks within that zoning.

“Developers are seizing these opportunities, and site values in key areas have surged by 20-30%,” Mr Serrao added. “Some agents are asleep at the wheel, but we’re proactively working with developers and property owners to capitalise on these changes.”

Traditional prospecting is king

While legislative changes and market conditions drive sales, Raine & Horne Double Bay/Bondi Beach attributes much of its success in returning to traditional prospecting methods.

“It’s so revolutionary that it’s simple,” Mr Serrao said. “We’re door-knocking, speaking directly with property owners about issues such as the zoning changes, and helping them understand the true value of their asset. It’s just good old-fashioned foot traffic marketing.”

‘While AI-driven tools like bots assist with database management and Raine & Horne’s Amplify platform enhances digital marketing, face-to-face interactions remain a very effective lead-generation strategy.”

As market conditions evolve, Mr. Serrao remains optimistic. “If we adapt to density changes and the shifts in foreign buyer legislation, the next few months could be incredible. There’s no time to sit back—this is the time to act.”

For all your real estate sales and property management needs in Double Bay and Bondi Beach and surrounding suburbs contact Raine & Horne Double Bay/Bondi Beach on 02 9327 7971.

[i] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/albanese-government-clamping-down-foreign-purchase

[ii] https://www.nsw.gov.au/ministerial-releases/low-and-mid-rise-policy-to-unlock-112000-homes-five-years