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Yes, the analysis of Sydney's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Surry Hills? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Newtown or Paddington where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Sydney Property Pack.
Will property prices increase in Sydney in 2025?
Yes, property prices in Sydney are expected to rise in 2025, driven by a combination of strong demand and limited housing supply.
Backed by our fresh, in-depth market analysis, we’re confident that Sydney remains a highly attractive market for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Sydney’s price growth are likely to persist.
Demand, especially in desirable suburbs, continues to outpace supply, making significant price declines unlikely. Additionally, Sydney's status as a major economic and cultural hub continues to attract buyers from around the world.
Signals pointing to a property price increase in Sydney
Here are some factors suggesting prices could increase:
The ongoing shortage of housing supply, particularly in high-demand areas, is expected to continue into 2025. With limited new developments and a growing population, this imbalance is likely to drive prices upward.
Sydney's infrastructure projects, such as the expansion of the metro and improvements to road networks, are set to enhance connectivity and accessibility, making certain suburbs more attractive and potentially increasing property values.
Government incentives for first-time homebuyers and investors are expected to stimulate demand, providing financial support that could lead to increased purchasing activity and higher property prices.
The continued influx of international students and skilled migrants is anticipated to bolster demand for rental properties, indirectly supporting property prices as investors seek to capitalize on rental yields.
Sydney's strong economic performance and job market resilience are likely to attract more professionals to the city, increasing demand for housing in key employment hubs and desirable residential areas.
The trend of remote work is encouraging more people to seek larger homes with office space, increasing demand in suburban areas and potentially driving up prices in these regions.
Signals pointing to a property price decrease in Sydney
Here are some factors suggesting prices could fall:
Potential interest rate hikes could make borrowing more expensive, reducing the purchasing power of buyers and potentially cooling demand in the property market.
Economic uncertainties, such as inflation and global market volatility, could impact consumer confidence and spending, leading to a slowdown in property transactions.
Affordability issues, with property prices already at high levels, may deter first-time buyers and lower-income households, potentially reducing demand in certain segments of the market.
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If property prices go up in Sydney, how much would they increase by?
If real estate prices in Sydney were to rise in 2025, the increase would likely be between 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Sydney appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a lovely 2-bedroom apartment in Bondi for 1,200,000 AUD today, don't be surprised if it's priced between 1,236,000 and 1,284,000 AUD this time next year.
To give you a better understanding, here is a table that shows 7 types of Sydney real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (AUD) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Apartment (60 sqm / 646 sqft) | 1,000,000 AUD | 1,030,000 AUD | 1,050,000 AUD | 1,070,000 AUD |
| Modern Apartment (75 sqm / 807 sqft) | 1,500,000 AUD | 1,545,000 AUD | 1,575,000 AUD | 1,605,000 AUD |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 3,000,000 AUD | 3,090,000 AUD | 3,150,000 AUD | 3,210,000 AUD |
| Studio (30 sqm / 323 sqft) | 600,000 AUD | 618,000 AUD | 630,000 AUD | 642,000 AUD |
| Loft (80 sqm / 861 sqft) | 2,000,000 AUD | 2,060,000 AUD | 2,100,000 AUD | 2,140,000 AUD |
| Townhouse (150 sqm / 1,615 sqft) | 4,000,000 AUD | 4,120,000 AUD | 4,200,000 AUD | 4,280,000 AUD |
| Investment Property (50 sqm / 538 sqft) | 900,000 AUD | 927,000 AUD | 945,000 AUD | 963,000 AUD |
Everything you need to know is included in our Property Pack for Sydney
If real estate prices go up in Sydney, which areas are likely to see the biggest increases?
Today, people who want to move to Sydney want the charm, but they also want modern conveniences and vibrant social scenes, which Surry Hills delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Newtown has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Sydney market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Surry Hills | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Paddington | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Sydney. |
| Marrickville | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| North Sydney | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Green Square | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Balmain | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Newtown | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Parramatta | Medium-High | Its proximity to Sydney CBD, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Bondi Beach | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| The Rocks | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Sydney
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Sydney?
In 2025, Sydney real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Sydney, such as the Northern Beaches and the Hills District, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense areas like Sydney's Inner West, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Sydney's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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