How much for a property in Sydney now?

Last updated on September 1, 2025

Authored by the expert who managed and guided the team behind the Australia Property Pack

Yes, the analysis of Sydney's property market is included in our pack

The Sydney property market in 2025 continues to be Australia's most expensive, with median house prices reaching $1.49 million and units averaging $860,000.

(Despite affordability challenges, strong population growth, infrastructure investment, and government support schemes are driving continued demand and price growth across the city.)

If you want to go deeper, you can check our pack of documents related to the real estate market in Sydney, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Sydney's property market remains Australia's strongest with median house prices at $1.49 million and units at $860,000 as of mid-2025.

Rental yields are experiencing significant growth with vacancy rates at historic lows and rents increasing over 15% year-on-year.

Property Type	Current Price	Key Growth Areas
Houses	$1.49 million median	Mount Druitt, Whalan
Units/Apartments	$860,000 median	Eschol Park, Ambarvale
Building Cost	$2,500-$7,000 per sqm	Location dependent
Rental Growth	15% year-on-year	City-wide trend
2030 Forecast	$2+ million median	Population growth driven
Government Support	2-5% deposits available	First Home Guarantee
Vacancy Rates	Historic lows (1.7%)	Tight rental market

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Sydney. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Sydney real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Sydney, Melbourne, and Brisbane. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current property prices in Sydney as of 2025?

Sydney's median house price stands at approximately $1.49 million as of mid-2025, while units average around $860,000.

These figures place Sydney as Australia's most expensive property market, significantly ahead of other major cities. Melbourne's median house price is around $939,000, while Brisbane sits just over $1 million.

The price gap between Sydney and other Australian capitals continues to widen, with Sydney properties commanding premium prices due to limited supply and strong demand. The city's established infrastructure, employment opportunities, and lifestyle amenities contribute to these elevated valuations.

Regional variations within Sydney are significant, with western suburbs generally offering more affordable entry points while harbor-side and eastern suburbs command the highest premiums.

It's something we develop in our Sydney property pack.

How much does it cost to build a house in Sydney?

The average cost to build a house in Sydney ranges from $2,500 to $7,000 per square meter, depending on location and design complexity.

Basic construction in outer suburbs typically starts at the lower end of this range, while premium builds in established areas can reach the upper limit. Factors affecting costs include site accessibility, soil conditions, council requirements, and finishing quality.

Labor shortages and material costs have pushed building expenses higher throughout 2025, with many builders reporting increased prices for timber, steel, and skilled trades. Site preparation costs can add significantly to the base construction price, especially on sloping or difficult blocks.

Custom homes with high-end finishes, complex architectural features, or premium locations often exceed $7,000 per square meter. Swimming pools, landscaping, and additional features like home theaters or wine cellars add substantially to total project costs.

Most new builds in Sydney's growth corridors average between $3,500-$4,500 per square meter for standard family homes with quality finishes.

What are the rental yields like in Sydney's current market?

Sydney's rental market has experienced significant growth in 2025, with vacancy rates at historic lows and rents increasing by over 15% year-on-year.

The rental vacancy rate has dropped to approximately 1.7%, creating intense competition among tenants and driving rental prices upward across all property types. This tight supply situation benefits property investors through improved rental yields and reduced vacancy periods.

Units in well-connected suburbs are seeing particularly strong rental demand, with many properties receiving multiple applications within days of listing. Houses in family-friendly areas with good schools are also experiencing robust rental growth.

International student and skilled migration programs have contributed to rental demand, particularly in areas close to universities and major employment hubs. The work-from-home trend has also shifted demand toward properties with dedicated office spaces.

Investors are benefiting from both capital growth and improved rental returns, making Sydney an attractive investment destination despite high entry prices.

Which areas in Sydney are predicted to see the highest growth?

Suburb	Predicted Growth (6 months)	Key Growth Drivers
Mount Druitt	5%+	Infrastructure investment, affordability
Whalan	5%+	Transport links, first home buyer activity
Eschol Park	5%+	Family-friendly amenities, new developments
Ambarvale	5%+	Airport proximity, industrial growth
Blacktown	4-5%	Major infrastructure projects
Campbelltown	4-5%	University expansion, transport upgrades
Liverpool	3-4%	Commercial development, connectivity

How does the First Home Guarantee Scheme affect Sydney property prices?

The First Home Guarantee Scheme, effective from October 1, 2025, allows first-time buyers to purchase with deposits as low as 2-5% without mortgage insurance.

This scheme is expected to increase buying power for first-home buyers, potentially driving house prices up by 6.6% in 2026. The scheme reduces the barrier to entry by eliminating the need for lenders mortgage insurance on deposits below 20%.

Increased buyer activity from the scheme is likely to intensify competition in the lower price segments of the market, particularly affecting units and entry-level houses. This additional demand pressure contributes to continued price growth expectations.

Property developers and real estate agents report increased inquiries from first-time buyers since the scheme's introduction, with many previously priced-out buyers now actively searching for properties. The scheme particularly benefits buyers in western and southwestern growth corridors where prices remain relatively more accessible.

The long-term effect will depend on housing supply responses and whether construction can keep pace with the additional demand generated by improved buyer access.

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What factors are driving Sydney's property market growth?

Population growth remains the primary driver, with Sydney experiencing a 2.1% increase in 2023 and continued migration placing pressure on housing demand.

Limited housing supply relative to demand creates upward pressure on prices, particularly in established suburbs where development opportunities are restricted. Infrastructure investment, including Sydney Metro expansion, boosts property values in serviced areas.

Employment growth in technology, finance, and professional services sectors supports higher incomes and property demand. International migration, including skilled workers and students, contributes significantly to rental and purchase demand.

Interest rate policies and lending conditions affect buyer capacity, while government initiatives like the First Home Guarantee Scheme stimulate additional demand. The psychological factor of Sydney's status as Australia's global city continues to attract investors and residents.

It's something we develop in our Sydney property pack.

How do demographic shifts affect Sydney's property market?

Baby Boomers downsizing creates increased supply of larger family homes while boosting demand for units and townhouses.

Millennials entering their prime buying years drive demand for affordable family homes, particularly in outer suburbs where they can access larger properties. This demographic shift supports growth in areas like Mount Druitt, Whalan, and other western suburbs.

Skilled migration brings international buyers with different preferences, often favoring apartments close to employment centers and transport links. International students create sustained rental demand in inner suburbs and near university campuses.

Working-from-home trends have shifted preferences toward properties with dedicated office spaces and better lifestyle amenities, supporting growth in middle-ring suburbs. Empty nesters often prefer low-maintenance properties with good access to healthcare and shopping.

These demographic trends support both capital growth and rental demand across different property types and locations throughout Sydney.

What are the long-term forecasts for Sydney property prices?

Experts forecast Sydney's median house price to surpass $2 million by 2030, driven by population growth and limited housing supply.

The trajectory toward $2 million median prices reflects continued demand pressure from migration, employment growth, and infrastructure investment. Limited developable land in established areas constrains supply responses to demand.

Annual growth rates are expected to moderate from recent highs but remain positive, with compound growth supporting the march toward $2 million medians. Different property types and locations will experience varying growth rates, with apartments potentially outperforming houses in some periods.

External factors including interest rates, government policies, and global economic conditions will influence the exact timeline and growth trajectory. Climate change considerations may also affect future development patterns and property values.

Conservative estimates suggest 4-6% annual compound growth through the remainder of the decade, assuming continued population growth and constrained supply conditions.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the best investment strategies for Sydney property in 2025?

Strategic investments in emerging suburbs like Mount Druitt and Whalan offer growth potential with lower entry costs compared to established areas.

1. **Growth Corridor Focus**: Target western and southwestern suburbs with infrastructure investment and population growth2. **Transport-Oriented Development**: Invest near planned or existing metro stations and major transport hubs3. **Rental Yield Optimization**: Focus on properties that appeal to tenants in high-demand rental markets4. **Renovation and Development**: Consider value-add opportunities in middle-ring suburbs with development potential5. **Diversified Portfolio Approach**: Mix property types and locations to balance growth potential with rental stability

Unit investments in well-connected areas offer lower entry costs and strong rental demand from demographic shifts. House investments in growth corridors provide land value appreciation potential with family rental appeal.

Renovation projects in established suburbs can unlock significant value, particularly properties requiring cosmetic updates or minor structural improvements. Development opportunities exist in areas experiencing rezoning or density increases.

It's something we develop in our Sydney property pack.

How does Sydney compare to other Australian property markets?

Sydney's median house price of $1.49 million significantly exceeds Melbourne ($939,000) and Brisbane ($1 million), maintaining its position as Australia's most expensive market.

The price premium reflects Sydney's economic dominance, international connectivity, and lifestyle appeal. Rental yields in Sydney compete favorably with other capitals when adjusted for capital growth potential and market liquidity.

Sydney's market depth and transaction volumes exceed other cities, providing better liquidity for investors seeking to buy or sell properties. The city's international profile attracts more overseas investment than regional markets.

Growth rates vary between cities, with Sydney sometimes underperforming on annual growth while maintaining superior long-term appreciation. Brisbane and Perth occasionally show stronger percentage growth from lower bases.

Sydney's market maturity and stability appeal to conservative investors, while other cities may offer higher growth potential with increased volatility. Infrastructure quality and employment diversity support Sydney's market resilience during economic downturns.

What challenges face Sydney property buyers in 2025?

Affordability remains the primary challenge, with median house prices requiring substantial deposits and high borrowing capacity.

1. **High Deposit Requirements**: Even with government schemes, buyers need significant savings for deposits and transaction costs2. **Intense Competition**: Limited supply creates bidding wars and properties selling above asking prices3. **Interest Rate Sensitivity**: Higher rates affect borrowing capacity and serviceability requirements4. **Transaction Costs**: Stamp duty, legal fees, and inspection costs add substantially to purchase prices5. **Market Timing Risks**: Fast-moving market conditions make timing purchases challenging for buyers

Stamp duty costs add significantly to transaction expenses, particularly affecting upgraders and investors. Legal and inspection requirements create time pressures in competitive market conditions.

Lending restrictions and serviceability tests limit borrowing capacity even for well-qualified buyers. Property condition and building quality issues require careful due diligence in older properties.

Market volatility creates timing challenges, with buyers balancing current prices against future growth expectations. International buyers face additional regulatory requirements and financing limitations.

What opportunities exist for property investors in Sydney?

Strong rental demand with 15% year-on-year growth and historic low vacancy rates create excellent conditions for rental yields.

Emerging suburbs in western Sydney offer growth potential with lower entry costs, supported by infrastructure investment and population growth. Government incentives for new builds and first-time buyers create additional demand stimulus.

Development opportunities exist in middle-ring suburbs experiencing density increases and rezoning. Renovation projects can unlock value in established areas where older properties require updating.

International migration and student populations provide sustained rental demand for appropriately located investment properties. The trend toward smaller households supports unit and townhouse investments.

Long-term demographic trends favor continued property demand growth, supporting capital appreciation alongside rental returns. Sydney's global city status provides market stability and international investment appeal.

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's property market in 2025 presents both significant opportunities and challenges for buyers and investors.

While high prices create affordability barriers, strong fundamentals including population growth, infrastructure investment, and limited supply support continued price appreciation and rental demand.