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Yes, the analysis of Sydney's property market is included in our pack
Sydney property prices are showing positive growth in 2025, with houses up 1.7% and the median dwelling value reaching $1,203,395 as of May 2025.
The Sydney residential market has entered a new growth phase following the RBA's rate cut in May 2025, ending a brief period of price softening in late 2024. With strong demand from both local and interstate buyers, limited supply, and major infrastructure projects underway, the market is positioned for continued appreciation throughout 2025 and beyond.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Sydney property prices are rising modestly in 2025, with houses up 1.7% year-to-date and units remaining stable but offering higher rental yields.
The market is driven by the May 2025 RBA rate cut, expanded Help to Buy scheme, and ongoing supply constraints, with premium suburbs like Rose Bay and growth areas like Penrith showing the strongest gains.
| Metric | Current Value (June 2025) | Trend/Forecast |
|---|---|---|
| Median House Price | $1,486,373 | +1.7% YTD, forecast $1.93M by 2027 |
| Median Unit Price | $859,811 | Stable, but 4.2% rental yield |
| Annual Growth Rate | +1.1% | Expected to accelerate with rate cuts |
| Top Growth Suburbs | Rose Bay, Penrith, Manly | 5-11% annual growth in select areas |
| Supply vs Demand | 23,500 listings (10.3% above average) | Still insufficient for demand |
| Interest Rates | Cut by 0.25% in May 2025 | Further cuts anticipated |
| Foreign Investment | 2-year ban on established homes | Reduced competition at high end |
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.
What's the current average price for residential properties in Sydney as of June 2025?
Sydney residential property prices have reached new heights in mid-2025, with the median dwelling value sitting at $1,203,395.
Breaking this down by property type, houses command a median price of $1,486,373, while units and apartments are more accessible at $859,811. The mean price for all residential dwellings in New South Wales, which is dominated by Sydney, stands at $1,245,900, maintaining its position as Australia's most expensive property market.
These prices reflect Sydney's status as a global city with strong economic fundamentals. The premium attached to Sydney properties comes from factors including world-class infrastructure, employment opportunities, prestigious schools, and lifestyle amenities that continue to attract both local and international buyers.
As we reach mid-2025, the market shows signs of resilience despite earlier predictions of a slowdown. The recent RBA rate cut in May has already begun to stimulate buyer activity, particularly in the $2.5 to $4 million price bracket where confidence has returned strongly.
It's something we analyze in detail in our Australia property pack.
How much have Sydney property prices increased in the first half of 2025?
Sydney property prices have shown modest but positive growth in 2025, with dwelling values up 1.3% year-to-date through May.
The annual growth rate stands at 1.1%, marking a recovery from the brief 1.9% dip experienced in late 2024. This represents a more sustainable pace compared to the rapid appreciation seen in previous years, though certain property types and locations are performing significantly better than these averages.
Houses have outperformed units considerably, posting a 1.7% gain compared to relatively flat unit prices. However, this masks significant variation across different suburbs and property segments. Premium waterfront properties and homes in infrastructure-linked areas are seeing much stronger growth, while some outer suburban markets remain subdued.
The May 2025 RBA rate cut has injected new momentum into the market. Auction clearance rates jumped to 65.1% nationally following the announcement, and Sydney's premium property segment has seen renewed interest from both upgraders and investors seeking quality assets.
Which Sydney suburbs are experiencing the strongest price growth in 2025?
Rose Bay leads Sydney's growth suburbs in 2025, with house prices reaching $5.1 million and annual growth of 7.6%.
The western suburbs are experiencing a renaissance driven by major infrastructure projects. Penrith, St Marys, and Leppington are seeing exceptional growth due to the Sydney Metro West extension and proximity to the new Western Sydney Airport. These areas offer relative affordability while benefiting from billions in government infrastructure investment.
Premium coastal suburbs continue their strong performance. Manly, Coogee, and Mosman remain highly sought after, with limited stock driving competitive bidding. Dee Why has emerged as a sweet spot, offering beachside living at a more accessible price point while still delivering solid capital growth.
Investor-friendly suburbs showing strong fundamentals include Fairfield, Mount Druitt, and Kingswood. These areas combine affordability with high rental demand, making them attractive for those seeking positive cash flow alongside capital appreciation. The rental vacancy rates in these suburbs remain below 1%, indicating sustained tenant demand.
| Suburb | Property Type Focus | Key Growth Driver | Expected 2025 Growth |
|---|---|---|---|
| Rose Bay | Luxury houses | Waterfront scarcity | 7-8% |
| Penrith | Family homes | Sydney Metro West | 5-6% |
| Manly | Apartments & houses | Lifestyle premium | 4-5% |
| Leppington | New developments | Airport proximity | 6-7% |
| Dee Why | Units near beach | Affordable coastal | 4-5% |
| Fairfield | Investment properties | High rental yield | 3-4% |
| Kingswood | Student accommodation | University proximity | 4-5% |
What property types are seeing the biggest price increases in Sydney right now?
Detached houses continue to be the standout performers in Sydney's property market, with values up 1.7% in 2025 compared to relatively flat unit prices.
The preference for houses reflects ongoing lifestyle changes post-pandemic, with buyers prioritizing space, home offices, and outdoor areas. This trend is particularly pronounced in middle-ring suburbs where buyers can still find houses under $2 million, though these opportunities are becoming increasingly rare.
Townhouses and larger apartments with three or more bedrooms are emerging as the sweet spot for many buyers. These properties offer a compromise between the space of a house and the lower maintenance of an apartment, appealing to downsizers and young families alike. Properties with dedicated parking and storage are commanding significant premiums.
While unit values have remained stable in price terms, they're delivering superior rental yields of 4.2% compared to 2.7% for houses. Unit rents are also growing faster at 2.6% annually, making them increasingly attractive to investors focused on cash flow. The strongest performing units are those near transport hubs and in suburbs undergoing urban renewal.
Luxury properties above $5 million have shown remarkable resilience, with many achieving record prices despite the foreign buyer restrictions. This segment is being driven by successful local entrepreneurs, returning expatriates, and interstate buyers seeking Sydney's premium lifestyle offerings.
How are recent government policies affecting Sydney property prices in 2025?
The expanded Help to Buy scheme is creating significant ripple effects in Sydney's sub-$1.3 million market segment.
With income caps raised to $100,000 for singles and $160,000 for couples, and the Sydney property price cap lifted to $1.3 million, approximately 40,000 additional buyers are expected to enter the market over the next four years. This has already increased competition for properties in outer suburbs and older unit complexes, with multiple offers becoming common again in these price brackets.
The stamp duty reform discussions continue to generate debate, though implementation remains uncertain. Economists suggest that replacing stamp duty with an annual property tax could increase homeownership rates by 1-2 percentage points and improve housing mobility. However, the immediate price impact is expected to be moderate, with any changes likely to be phased in gradually.
It's a topic we explore thoroughly in our Australia property pack.
The federal budget's $800 million boost to housing affordability programs is beginning to flow through to the market. First-home buyers now represent 35% of all Sydney purchases, up from 28% a year ago. This increased participation is particularly visible in suburbs along new transport corridors where affordable new developments are being fast-tracked.
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What impact is the foreign buyer ban having on Sydney's property market?
The two-year ban on foreign acquisitions of established dwellings, effective from April 2025, has notably cooled demand at the luxury end of Sydney's market.
Properties above $10 million, which historically attracted significant international interest, are now taking longer to sell, with average days on market increasing from 45 to 75 days. This has created opportunities for local buyers in prestigious suburbs like Point Piper, Vaucluse, and Bellevue Hill, where negotiation power has shifted slightly toward purchasers.
The restrictions have had minimal impact on the broader market, as foreign buyers represented only 3-4% of total transactions. However, specific building complexes popular with overseas investors have seen price growth stall, particularly in the CBD and inner-city areas where offshore buyers previously dominated new apartment purchases.
Developers are adapting by focusing more on local marketing and adjusting their product mix to appeal to owner-occupiers rather than investors. Some are offering incentive packages including furniture and stamp duty rebates to attract domestic buyers who might previously have been priced out by foreign competition.
How did the May 2025 RBA rate cut affect Sydney property prices?
The RBA's 0.25% rate cut in May 2025 has provided an immediate boost to buyer confidence across Sydney's property market.
Within weeks of the announcement, mortgage pre-approvals surged by 23%, and auction clearance rates jumped from 58% to 65.1%. The increased borrowing capacity has been particularly impactful in the $2.5 to $4 million range, where many upgraders had been sitting on the sidelines waiting for more favorable conditions.
Real estate agents report a noticeable increase in property inspections and offers, with some homes receiving multiple bids after months of limited interest. The psychological impact has been as significant as the financial one, with buyers feeling more confident about their employment prospects and ability to service loans.
Banks have responded by launching competitive mortgage products, with some offering rates below 5.5% for owner-occupiers with substantial deposits. This has further stimulated activity, particularly among investors who can now achieve positive cash flow on properties in middle and outer ring suburbs.
Market analysts anticipate further rate cuts in the second half of 2025, which could accelerate price growth beyond current modest levels. However, lending standards remain strict, preventing the kind of explosive growth seen in previous rate-cutting cycles.
What's the current supply and demand situation in Sydney's housing market?
Sydney's property market continues to face a fundamental supply-demand imbalance, with 23,500 listings in March 2025 representing only a 10.3% increase above historical averages.
Despite this modest improvement in listings, supply remains insufficient to meet demand from a growing population. Sydney is expected to add 650,000 new residents by 2034, requiring approximately 250,000 new dwellings. Current construction rates are falling well short of this target due to high building costs, labor shortages, and complex planning approvals.
The rental market tells a stark story of undersupply. Vacancy rates have hit record lows below 1% in many suburbs, driving rental growth of 2.6% annually for units and even higher in desirable locations. This rental pressure is converting many would-be tenants into buyers, further intensifying purchase demand.
New development approvals have slowed due to rising construction costs and financing challenges for developers. Many approved projects are being delayed or scaled back, suggesting the supply shortage will persist through 2025 and beyond. This structural undersupply continues to put upward pressure on prices despite broader economic headwinds.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How do Sydney property prices compare to other Australian cities in 2025?
Sydney maintains its position as Australia's most expensive property market, with a median dwelling value of $1,203,395 compared to Melbourne's significantly lower prices.
Brisbane is rapidly closing the gap, with its 9.7% annual growth rate far exceeding Sydney's 1.1%. If current trends continue, Brisbane's median house price could actually surpass Sydney's by 2029, reaching $1.3 million compared to Sydney's projected $1.24 million. This remarkable shift reflects Brisbane's Olympics-driven infrastructure boom and interstate migration patterns.
Perth and Adelaide are experiencing even stronger growth rates, though from a lower base. Perth's mining boom renaissance and Adelaide's emergence as a lifestyle destination are driving double-digit annual gains. However, these cities remain significantly more affordable than Sydney in absolute terms.
| City | Median Dwelling Price | Annual Growth | vs Sydney Price | Growth Outlook |
|---|---|---|---|---|
| Sydney | $1,203,395 | 1.1% | 100% | Moderate |
| Melbourne | $915,000 | 0.5% | 76% | Slow |
| Brisbane | $875,000 | 9.7% | 73% | Very Strong |
| Perth | $720,000 | 12.3% | 60% | Very Strong |
| Adelaide | $755,000 | 10.1% | 63% | Strong |
| Hobart | $645,000 | -2.1% | 54% | Weak |
| Canberra | $885,000 | 2.3% | 74% | Stable |
What are the property price forecasts for Sydney through 2027?
Industry forecasts point to steady appreciation for Sydney properties, with median house prices expected to reach $1.93 million by 2027, representing an 18% increase from current levels.
Units are projected to perform even better in percentage terms, with median values forecast to hit $1.09 million by 2027, a 22% gain. This stronger growth reflects the current value gap between houses and units, as well as increasing acceptance of apartment living among families and downsizers.
These projections assume continued population growth, ongoing infrastructure investment, and a gradual easing of interest rates through 2026. The Western Sydney Airport's opening in late 2026 is expected to provide an additional boost to surrounding suburbs, potentially exceeding these baseline forecasts in specific locations.
However, several factors could impact these predictions. Rising unemployment (forecast to reach 4.3%) and slower GDP growth (2.1% for 2025) may temper price growth. Additionally, any significant increase in housing supply or changes to tax settings could alter the trajectory.
This analysis is covered extensively in our Australia property pack.
What's the long-term outlook for Sydney property prices beyond 2030?
Long-term projections suggest Sydney property prices could increase by up to 61% by 2030 if historical growth patterns continue.
This would place the median house price around $1.94 million by the end of the decade. However, these projections come with significant caveats. Sydney's property market has matured considerably, and the explosive growth seen in past decades is unlikely to be repeated at the same pace.
Structural factors supporting long-term growth include Sydney's status as Australia's financial capital, continued immigration, and limited geographic expansion possibilities due to natural boundaries. The city's knowledge economy and high-paying jobs should continue to support premium property values.
Challenges to long-term growth include affordability constraints, potential changes to negative gearing and capital gains tax policies, and the possibility of increased housing supply through densification. Climate change impacts on coastal properties and insurance costs are also emerging as factors that could affect certain suburbs disproportionately.
Infrastructure investments totaling over $100 billion through 2035, including new metro lines, the second airport, and urban renewal projects, should support price growth in connected areas. However, experts recommend focusing on "A-grade" properties in established areas rather than speculative fringe developments.
Which Sydney areas offer the best investment potential for the remainder of 2025?
Infrastructure-linked suburbs along the Sydney Metro West corridor present compelling investment opportunities for the remainder of 2025.
Parramatta, Sydney Olympic Park, and Burwood are set to benefit enormously from improved connectivity when the metro line progressively opens. These areas offer relative affordability while positioned for significant capital growth as they transform into major employment and residential hubs.
The northwest growth corridor continues to attract attention, with suburbs like Schofields, Marsden Park, and Box Hill offering new house and land packages under $1.5 million. While these areas lack established amenities, the population influx is driving rapid infrastructure development and creating opportunities for early investors.
For those seeking established areas with steady growth, middle-ring suburbs with good schools and transport links remain solid choices. Suburbs like Strathfield, Hurstville, and Rockdale offer a mix of houses and units, strong rental demand from families, and potential for redevelopment as density limits are relaxed.
Coastal suburbs between Cronulla and Wollongong represent an emerging opportunity. With remote work now permanent for many professionals, these areas offer beach lifestyle at prices 30-40% below equivalent northern beaches suburbs. The planned fast rail connection to Wollongong would further enhance these areas' appeal.
Inner-west suburbs undergoing industrial-to-residential conversion, such as Marrickville and Alexandria, continue to attract young professionals and investors. These areas benefit from proximity to the CBD, vibrant cultural scenes, and ongoing gentrification that supports long-term value growth.
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.
Yes - Sydney property prices are going up in 2025, though at a measured pace that reflects a maturing market finding its equilibrium after years of rapid growth.
The combination of the May 2025 rate cut, expanded government support for buyers, ongoing supply constraints, and Sydney's fundamental economic strengths all point to continued price appreciation. While the 1.1% annual growth might seem modest compared to other capitals, it represents a sustainable trajectory that should continue strengthening through 2025 and beyond as further rate cuts materialize and major infrastructure projects near completion.
Sources
- Australian Bureau of Statistics - Total Value of Dwellings
- Metropole - Sydney Housing Market Update
- Domain - House Price Report March 2025
- Property Update - Property Investment Sydney
- RealEstate.com.au - Brisbane Price Projections
- KPMG - House and Unit Prices Forecast 2025
- Smart Property Investment - RBA Rate Cut Impact
- Future Rent - Help to Buy 2025 Update