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Sydney property prices continue to reach record highs in 2025, with the median house price now exceeding $1.7 million.
The Sydney residential property market shows a massive 75% price gap between houses and apartments, creating distinct investment opportunities across different property types. Western and southwestern suburbs offer the most affordable entry points, while eastern harbourside areas command premium prices that can exceed $45 million for luxury homes.
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As of September 2025, Sydney house prices average $1.7 million while apartments cost around $850,000, making it Australia's most expensive property market.
The city offers diverse investment opportunities from $450,000 units in Campbelltown to $45 million luxury homes in Point Piper, with strong growth projected to continue.
| Property Type | Median Price (Sept 2025) | Best Investment Areas |
|---|---|---|
| Houses | $1.70 million | Marsden Park, Parramatta, Liverpool |
| Apartments | $850,000 | Randwick, Surry Hills, Drummoyne |
| Townhouses | $1.50 million | Green Square, Canada Bay, Belmore |
| Most Expensive | $9+ million | Point Piper, Bellevue Hill, Vaucluse |
| Most Affordable | $450,000+ | Campbelltown, Penrith, Fairfield |
| Fastest Growing | 5%+ annually | Marsden Park, Parramatta, Green Square |
| Best Rental Yields | 4.2% | Western Sydney, Inner West units |
What's the current average property price in Sydney?
The median house price in Sydney reaches $1.70 million as of September 2025, while apartments cost approximately $850,000.
These figures represent a significant milestone for the Sydney residential property market, with houses now commanding prices that are 75% higher than apartments. This price gap between houses and units has reached its highest level on record, creating distinct market segments for different types of buyers and investors.
The Sydney property market continues to lead Australia in terms of pricing, with the median house price ranging between $1.564 million and $1.722 million depending on the specific area and property characteristics. Townhouses typically fall in the middle range, with recent sales showing prices between $1.26 million and $1.73 million.
These current price levels reflect Sydney's position as Australia's premier property market, driven by limited supply, strong population growth, and the city's status as the country's economic hub. For property investors and homebuyers, understanding these baseline figures is crucial for making informed decisions about entering the Sydney market.
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How do prices differ between houses, apartments, and townhouses?
| Property Type | Median Price (Sept 2025) | Price Range |
|---|---|---|
| Houses | $1,700,000 | $760,000 - $45,000,000+ |
| Apartments/Units | $850,000 | $420,000 - $1,500,000+ |
| Townhouses | $1,500,000 | $1,260,000 - $1,730,000+ |
| Luxury Houses (Eastern Suburbs) | $9,200,000 | $5,000,000 - $45,000,000+ |
| Affordable Houses (Western Sydney) | $800,000 | $760,000 - $890,000 |
| Affordable Units (Western Sydney) | $450,000 | $420,000 - $500,000 |
| Premium Units (Eastern Suburbs) | $1,200,000 | $985,000 - $1,500,000+ |
What are the average prices in different Sydney suburbs and neighborhoods?
Sydney property prices vary dramatically across different suburbs, with the most expensive areas concentrated in the eastern harbourside locations and the most affordable properties found in western and southwestern suburbs.
The eastern suburbs dominate the luxury market, with Point Piper leading at a median house price of $45 million, representing Australia's most expensive residential street. Bellevue Hill follows with median house prices of $9.2 million and units at $1.5 million. Other premium eastern suburbs including Vaucluse, Double Bay, Mosman, and Darling Point command house prices between $5 million and $9 million.
Mid-range suburbs offer more accessible options while still maintaining strong capital growth potential. Areas like Randwick, Surry Hills, Neutral Bay, and Drummoyne feature unit prices ranging from $985,000 to $1.4 million, making them attractive for investors seeking rental yields and owner-occupiers wanting lifestyle locations.
The most affordable suburbs are concentrated in western and southwestern Sydney, where Campbelltown offers houses at $760,000 and units at $450,000. Villawood provides houses at $880,000, while areas like Penrith, Fairfield, Lakemba, and Canley Vale feature houses between $780,000 and $890,000 with units priced from $420,000 to $500,000.
Even within the inner west, affordable options exist, with Croydon Park offering houses at $1.15 million and units at $590,000, providing a middle ground between premium eastern suburbs and outer western areas.
Which areas are considered the most expensive, the most budget-friendly, and the most up-and-coming?
Sydney's property market divides into distinct price tiers based on location, infrastructure, and growth potential.
The most expensive areas remain concentrated in the eastern harbourside suburbs, where Point Piper tops the list with median house prices of $45 million. Bellevue Hill, Vaucluse, Double Bay, Mosman, and Darling Point form the premium tier with house prices ranging from $5 million to $9.2 million. These areas command such high prices due to their harbourfront locations, established prestige, and proximity to the CBD.
Budget-friendly suburbs offer the best entry points for first-home buyers and investors with limited capital. Campbelltown leads the affordable market with houses at $760,000 and units at $450,000. Other western suburbs including Penrith, Fairfield, Lakemba, Canley Vale, and Villawood provide houses between $780,000 and $890,000, making them accessible for buyers seeking capital growth potential.
Up-and-coming areas represent the strongest growth opportunities for investors and buyers seeking future capital appreciation. Marsden Park in the northwest growth corridor leads this category, benefiting from major infrastructure development and new housing supply. Parramatta, as Sydney's second CBD, continues to attract significant investment and development. Green Square, Liverpool, Belmore, and Canada Bay also feature prominently among fastest-growing suburbs.
Additional emerging areas include Glenmore Park, Kings Park, Edgecliff, Enmore, and Yennora, which attract investor attention due to their growth potential and relatively affordable entry prices compared to established premium suburbs.
How much does price vary depending on the property's size or surface area?
Property prices in Sydney show significant variation based on size, with larger properties commanding premium prices particularly in established suburbs.
Three-bedroom houses represent the market median at $1.75 million across Sydney, providing a benchmark for family-sized properties. However, price per square meter varies dramatically across different suburbs, with luxury pockets in eastern suburbs and harbourside locations commanding significantly higher rates than outer western areas.
The size premium becomes most apparent in prestigious suburbs where larger properties on bigger blocks can reach exceptional prices. Point Piper properties exemplify this trend, where larger harbourfront homes can exceed $45 million, while smaller units in the same area still command premium prices due to location prestige.
In contrast, western suburbs offer better value for larger properties, where families can secure houses with more space at significantly lower per-square-meter costs. Areas like Campbelltown and Penrith provide larger family homes at prices that would only secure small apartments in eastern suburbs.
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What is the total purchase cost once fees, taxes, and stamp duty are included?
The total cost of purchasing property in Sydney extends well beyond the purchase price, with stamp duty representing the largest additional expense for most buyers.
Stamp duty in New South Wales varies significantly based on property value, with buyers paying approximately $67,000 on a $1.5 million property and around $40,000 on a $1 million home. Properties over $3 million face marginal stamp duty rates exceeding 7%, making luxury purchases particularly expensive from a total cost perspective.
Additional costs include conveyancing fees ranging from $1,500 to $3,000, loan and mortgage establishment fees typically costing $1,000 or more, building and pest inspections at approximately $500, and insurance premiums. These combined costs can add $5,000 to $10,000 to the total purchase price for most properties.
First-home buyers benefit from significant stamp duty concessions in New South Wales, including full exemption for properties up to $800,000 and partial exemptions for properties up to $1 million. These incentives can save first-home buyers tens of thousands of dollars, making property ownership more accessible for those entering the market.
For a typical Sydney property purchase of $1.5 million, buyers should budget approximately $75,000 to $80,000 in additional costs beyond the purchase price, representing about 5% of the total transaction value.
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How much would a typical mortgage cost monthly for the average property?
Monthly mortgage payments for Sydney properties reflect the city's high property prices, with the average Sydney mortgage of $810,000 requiring approximately $5,000 in monthly repayments.
Based on current interest rates of approximately 6.3%, buyers with an $810,000 mortgage face monthly repayments of around $5,000, representing a significant portion of household income for most buyers. This figure assumes a standard 30-year loan term with principal and interest repayments.
Premium properties requiring larger mortgages of $1.2 million or more result in monthly repayments exceeding $7,000, making these properties accessible primarily to high-income earners or investors with substantial rental income to offset mortgage costs.
For more affordable properties in western suburbs, buyers purchasing homes around $800,000 with a mortgage of $640,000 (assuming a 20% deposit) would face monthly repayments of approximately $4,000, making home ownership more achievable for average-income households.
These mortgage costs highlight the importance of rental yields for property investors, with many investors in Sydney's market relying on rental income to cover a significant portion of their mortgage repayments, particularly in areas offering higher rental yields such as western suburbs and apartment markets.
Can you give examples of actual purchase prices for recent sales?
Recent Sydney property sales demonstrate the diverse price ranges across different property types and locations throughout the city.
Recent apartment sales show significant variation, with a 2-bedroom unit at 23/38-42 Minter Street selling for $1.185 million, while another 2-bedroom unit at 5/16 Rome Street sold for $630,000, highlighting how location dramatically affects pricing even for similar property types.
Townhouse sales reflect the middle market segment, with a 5-bedroom townhouse at 7/28-30 Phillips Avenue selling for $1.728 million and a 3-bedroom townhouse at 9/9-15 Gardere Street reaching $1.26 million, showing how size and location impact townhouse pricing.
House sales cover an even broader range, from a 4-bedroom house at 8 Florence Street selling for $827,000 in more affordable areas to a 2-bedroom house at 52 Ivy Street reaching $1.82 million in premium locations, demonstrating how established inner-city locations command premiums even for smaller properties.
These actual sales figures provide concrete examples of current market pricing and help buyers understand what different budgets can achieve across Sydney's diverse property market segments.
What are the smartest choices today if you want to live in the property, rent it out short term or long term, or buy to resell later?
The optimal property choice in Sydney depends significantly on your intended use, with different property types and locations offering distinct advantages for each strategy.
For owner-occupiers seeking to live in the property, units in up-and-coming inner suburbs provide the best value proposition, offering lifestyle benefits at more accessible price points than premium eastern suburbs. Areas like Randwick, Surry Hills, and inner-west locations provide excellent amenities and transport links without the premium prices of harbourside suburbs.
Short-term rental investors should focus on properties near the CBD, eastern beaches, and major tourist attractions, which command premium nightly rates from both domestic and international visitors. Properties in areas like Bondi, Manly, Circular Quay, and The Rocks consistently achieve higher occupancy rates and rental premiums for short-term accommodation.
Long-term rental investors benefit most from apartments, which produce higher rental yields of 4.2% compared to houses at 2.6%. Key areas for rental investment include Randwick, Surry Hills, Drummoyne, Neutral Bay, and western Sydney suburbs where rental demand remains strong and yields are more attractive.
For capital growth and resale potential, growth corridors like Marsden Park and Parramatta offer the strongest prospects, along with gentrifying suburbs that benefit from infrastructure development and changing demographics. These areas provide the best opportunity for substantial capital appreciation over medium to long-term holding periods.
How have Sydney property prices changed compared with one year ago and five years ago?
Sydney property prices show continued growth momentum, with house values increasing between 1.3% and 4.0% over the past 12 months as of September 2025.
The five-year growth story is more dramatic, with Sydney house prices rising nearly 50% to 59% over this period, representing some of the strongest property appreciation in Australia. This growth rate has significantly outpaced inflation and wage growth, contributing to ongoing affordability challenges for many buyers.
Looking at the longer 10-year perspective, Sydney house prices have increased by 97%, nearly doubling over this period. This dramatic appreciation reflects Sydney's position as Australia's premier property market and the ongoing imbalance between housing supply and demand in the city.
These growth figures highlight both the wealth creation opportunity for existing property owners and the increasing difficulty for new entrants to access the Sydney property market. The consistent upward trajectory demonstrates the market's resilience through various economic cycles and reinforces Sydney's position as a preferred investment destination.
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What is the forecast for property prices over the next one year, five years, and ten years?
Sydney property price forecasts indicate continued growth across all timeframes, though at varying rates depending on economic conditions and market cycles.
For the next 12 months, major banks forecast Sydney property price growth between 2.7% and 5.5% by the end of 2025, reflecting ongoing demand pressures and limited supply availability. This growth rate represents a moderation from previous years but still indicates healthy market conditions.
Five-year projections suggest Sydney house prices could reach $2.4 million by 2030, representing an increase of nearly $1 million from current levels if recent growth trends continue. This projection assumes continued population growth, limited housing supply, and stable economic conditions supporting property demand.
Ten-year forecasts indicate continued steady growth, with industry analysts predicting that Sydney property prices will maintain their upward trajectory driven by the city's economic fundamentals, population growth, and infrastructure development. However, these longer-term predictions depend heavily on economic conditions, government policy, and supply-side responses to current housing shortages.
Some market analysts including SQM Research suggest potential minor corrections of up to 5% if market conditions soften, but most banks highlight the market's resilience and expect modest positive growth to continue across all forecast periods.
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How do Sydney property prices compare to other big cities with similar characteristics?
| City | Median House Price | Median Unit Price |
|---|---|---|
| Sydney | $1,700,000 | $850,000 |
| Melbourne | $1,060,000 | $609,000 |
| Brisbane | $1,070,000 | $715,000 |
| Perth | $926,000 | $584,000 |
| Adelaide | $1,010,000 | $632,000 |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Sydney remains Australia's most expensive property market, with median house prices exceeding $1.7 million and apartments averaging $850,000 as of September 2025.
The city offers diverse investment opportunities across different price segments, from affordable western suburbs starting at $450,000 for units to luxury eastern harbourside properties exceeding $45 million, with continued growth expected across all timeframes.
Sources
- Real Estate Australia - Sydney House Prices Gap
- Domain House Price Report June 2025
- Metropole Sydney Housing Market Update
- Rose and Jones Most Expensive Sydney Suburbs
- Upmove Cheapest Suburbs in Sydney
- Ready Set Buy Best Investment Suburbs Sydney
- Complete Conveyancing Sydney Stamp Duty Guide
- AOD Project Average Mortgage Sydney
- Domain Sydney Auction Results August 2025
- Property Update House Prices 10 Years