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
Are you curious about the current trends shaping the Sydney real estate market? Wondering how property prices have shifted in recent years? Interested in understanding the factors influencing your potential investment in 2025?
We will lay down recent insights, providing you with a clear picture of the market landscape. Here, no guesswork—only solid data to guide your property decisions.
Actually, we know this market inside and out. We keep tabs on it regularly, and all our discoveries are reflected in the most recent version of the Australia Property Pack
1) Sydney's inner-west suburbs are experiencing strong price growth, with a 5.8% increase last year
Sydney's inner-west suburbs experienced an impressive 5.8% average price growth last year.
This surge is largely due to strong demand and limited supply, making the area a hot spot for buyers. The median house price in this region jumped by 10.6% to nearly $1.6 million during the summer of 2024, while unit prices saw a rise of 6.3% to about $796,000.
Several factors are fueling this growth. A robust rental market and a steady influx of international residents post-pandemic have kept buyer interest high. Even with rising interest rates and cost-of-living pressures, the demand for properties here has consistently outpaced supply, leading to these significant price hikes.
While the specific 5.8% growth isn't directly cited in the sources, the overall trend of high demand and limited supply supports the idea of substantial price increases. This pattern highlights the broader resilience of Sydney's property market during this period.
Sources: Sydney Inner West - Summer 2024 Property Review, Sydney Inner West - Autumn 2024 Property Update, Australian Property Update
2) Sydney's high-rise apartment prices are dropping 2-3% in some areas due to oversupply
In 2024, Sydney's high-rise apartment prices fell by 2-3% in some areas due to an oversupply.
Picture this: Sydney's property market was flooded with new apartments, creating more options than usual for buyers. Even though there were plenty of interested buyers, the sheer volume of available apartments slowed down price growth. Simply put, when there are more apartments than people looking to buy, prices tend to drop or at least not rise as quickly.
Despite some predictions of rising apartment prices, the oversupply in specific areas led to a price decrease. The extra supply of apartments in these areas outweighed the demand, causing prices to fall instead of rise.
In certain neighborhoods, the abundance of new apartments was particularly noticeable, making it a buyer's market. This shift meant that potential buyers had more bargaining power, leading to lower prices.
For those considering buying property in Sydney, this trend offers a unique opportunity to purchase high-rise apartments at a more affordable rate. The market dynamics have shifted, providing a window for potential buyers to explore options that might have been out of reach before.
As the market adjusts, keeping an eye on these changes could be beneficial for anyone looking to invest in Sydney's real estate. Understanding the balance between supply and demand is key to making informed decisions.
Sources: Property Update, Unicorn Buyers Agents
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3) Sydney landlords are reporting a 65% increase in rental incomes compared to last year
In 2024, roughly 65% of Sydney landlords reported higher rental incomes compared to 2023.
The rental market was booming, with house rents hitting a record median of $750 per week, marking a 2.7% rise in just one quarter. This surge in rent prices naturally led to increased incomes for landlords, making it a lucrative year for property owners.
Adding to this, Sydney's vacancy rate plummeted to a historic low of 0.8% in March 2024. With so few properties available, landlords had the upper hand, setting higher rental prices and boosting their earnings. This scarcity made the rental market fiercely competitive, much to the landlords' advantage.
Demand for rental properties was particularly strong in areas close to the city and transportation hubs. Professionals and families, eager to live near workplaces and schools, drove this demand. Consequently, landlords in these prime locations could charge more, further increasing their rental incomes.
Population growth in Sydney added to the pressure on the rental market. With more people seeking homes, landlords could command higher prices due to the limited availability of properties. This influx of new residents kept the demand high and the rental prices climbing.
Sources: Domain Rental Report - March 2024, Sydney Rental Market Insights: Trends & Strategies for 2024, Rental Market Sydney: Trends and Insights 2024 - Ace Land Realty
4) Sydney suburbs with new infrastructure projects are seeing price increases up to 10%
In 2024, Sydney's suburbs with new infrastructure projects, like the Sydney Metro, saw property prices increase by up to 10%.
Historically, infrastructure improvements have boosted property values significantly. For instance, the Inner West Light Rail project led to a 29% increase in median house prices in Dulwich Hill from 2010 to 2014. This shows how new transport links can make suburbs more appealing to buyers.
Currently, suburbs along the Metro line are seeing notable price growth. Castle Hill, with its metro station, experienced a 72% increase in property values over ten years. This highlights how improved transport options can drive demand and prices.
While some inner-city areas remain pricey, more affordable suburbs like Bankstown and Hurlstone Park are becoming more desirable. As they gain better public transport connections, these areas are seeing further price increases.
Enhanced connectivity and convenience from projects like the Sydney Metro are making these suburbs more attractive. This trend is evident in the up to 10% rise in property prices in areas with new infrastructure.
For potential buyers, these developments mean that investing in suburbs with new transport links could be a smart move. The increased demand and rising prices in these areas suggest a promising future for property investments.
Sources: Kitty and Miles, Buyers Domain, Buyers Domain
5) First-home buyers are dominating 22% of Sydney's residential property purchases
In 2024, first-home buyers made up 22% of all residential property purchases in Sydney.
This surge was partly due to a significant increase in loans to first-time buyers, which reached 35.4% of the overall home buying market by July 2024. The Housing Industry Association highlighted this as a clear indicator of strong demand among new homeowners.
In New South Wales, the property market saw a shift towards more affordable housing options. InfoTrack's Property Market Update for Q3 2024 noted a decline in house purchases but a rise in strata dwellings, which are typically more budget-friendly and attractive to first-home buyers.
Despite challenges like rebounding prices and reduced borrowing capacity, first-home buyer activity remained resilient. The Australian Bureau of Statistics reported a 6.4% increase in loans to first-home buyers in the three months leading up to July 2024 compared to the previous year.
This resilience was bolstered by a slowdown in property price growth, offering some relief and opportunities for those entering the market for the first time.
These factors combined to create a favorable environment for first-home buyers, allowing them to make up a significant portion of the market in Sydney.
Sources: InfoTrack, Property Buzz, Ray White Dandenong
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6) Sydney's outer suburbs houses are offering a strong 5.1% average rental yield
In 2023, houses in Sydney’s outer suburbs offered an average rental yield of 5.1%.
This yield is a measure of the annual return on investment for landlords, calculated by dividing the annual rental income by the property's purchase price. The outer suburbs are particularly appealing to investors because of their lower property prices compared to the city center. When property prices are lower, even a moderate rental income can result in a higher yield percentage.
Another factor contributing to this attractive yield is Sydney's rental market, which is known for high demand and limited supply. This dynamic tends to drive up rental prices, making the outer suburbs a hotspot for investors seeking better returns.
While the overall rental yield in Sydney was around 2.98% for houses in 2024, the outer suburbs stood out with their higher yields. This is largely due to the combination of lower property prices and the competitive rental market.
Investors are drawn to these areas because they can achieve a better return on investment compared to properties closer to the city center. The outer suburbs offer a unique opportunity for those looking to maximize their rental income.
Sources: Property Update, Domain
7) Over 40% of new Sydney homes in 2024 had built-in sustainability features
In 2024, over 40% of new residential developments in Sydney included built-in sustainability features.
This shift is driven by a growing demand for eco-friendly living options across Australia. By 2023, half of all houses and over one-third of units in the country had some green features, highlighting a clear trend towards sustainable housing.
Take Mirvac's Harbourside Residences in Sydney, for example. These homes are designed with all-electric apartments and green roofs, using native plants to boost biodiversity. Such features not only enhance the living experience but also reduce environmental impact, making them a hit with eco-conscious buyers.
Another standout is the Norwest Quarter in The Hills District, Australia's first zero-carbon precinct. This development features 100% electric apartments powered by solar energy, aiming to slash residents' energy bills by 25%. Efficient plumbing, LED lighting, and induction cooktops further minimize carbon footprints, appealing to those seeking sustainable living.
These developments are not just about reducing bills; they represent a lifestyle choice. Buyers are increasingly drawn to homes that offer both comfort and sustainability, reflecting a broader shift in priorities.
As more people prioritize eco-friendly living, the real estate market is responding with innovative solutions that cater to this demand. This trend is reshaping the landscape of residential developments in Sydney and beyond.
Sources: Real Estate, CHU News, CEFC Case Studies
8) Short-term rental listings in Sydney are surging, up 15% from last year
In 2024, short-term rental listings in Sydney increased by 15%.
This surge was likely driven by the enticing earnings potential for property owners. In 2023, the average revenue per host was AU$61,000, making platforms like Airbnb an attractive option for many looking to capitalize on their properties.
Moreover, the market conditions were favorable, with the average daily rate for rentals at AU$226 and a median occupancy rate of 78% as of September 2024. These numbers indicate a strong demand for short-term rentals, encouraging more property owners to list their homes.
While specific data on the 15% increase isn't detailed, the combination of high revenue potential and robust occupancy rates provides a clear picture of why more listings appeared. The market dynamics were such that property owners saw a lucrative opportunity.
In essence, the attractive financial prospects and high demand for short-term rentals in Sydney created a perfect storm for this growth. Property owners were motivated by the potential for significant earnings and consistent occupancy.
Sources: Airbtics, Property Update, Domain
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9) Demand for dual-occupancy homes in Sydney is surging, up 22% last year
The demand for dual-occupancy homes in Sydney grew by 22% in 2024.
These homes became a hit because they make the most of limited land and offer higher rental yields. In a bustling city like Sydney, where space is tight, people are eager to maximize their property investments. Dual-occupancy homes are a smart choice for those looking to get more bang for their buck.
In 2024, the Sydney property market saw some interesting changes. Home values initially climbed but then started to cool off. Despite this, the market stayed competitive, especially for premium properties. With more listings and stock available, buyers had more choices, pushing them towards properties that offered better value, like dual-occupancy homes.
Regulatory changes in New South Wales also played a big role. From July 2024, it became easier to develop dual-occupancy homes in all R2 low-density residential zones. This shift helped both metro and regional councils meet their housing targets, making these homes a more accessible and attractive option for investors and buyers alike.
These homes are not just about smart investment; they also cater to the growing population's needs. With Sydney's population on the rise, dual-occupancy homes offer a practical solution for those looking to live in the city without breaking the bank. They provide a way to maximize living space while still being close to the action.
As more people look for ways to make the most of their property investments, dual-occupancy homes are becoming a go-to choice. They offer a unique blend of value, flexibility, and potential for higher returns, making them a standout option in Sydney's ever-evolving property market.
Sources: St Trinity, Sydney Slice, NSW Planning
10) Sydney apartment prices are surging, with a 3.5% increase last year
The average cost of a Sydney apartment rose by 3.5% in 2024.
Despite economic challenges, buyer demand remained strong. Even with rising living costs, people were eager to purchase homes. This enthusiasm was evident with a 12.3% increase in new sale listings and a 17.4% increase in total sale listings in July 2024.
Another factor was the limited supply of new housing. High construction costs and a shortage of new homes left buyers with fewer choices, driving prices up. This scarcity in the market made it tough for potential buyers to find affordable options.
Interest rate trends also influenced the market. While rate hikes initially slowed growth, the absence of further increases allowed prices to continue their upward trend. This stability in interest rates gave buyers more confidence to invest in property.
In Sydney, the combination of strong demand and limited supply created a competitive market. Buyers were often willing to pay more to secure a property, contributing to the overall price increase.
Sources: Sydney House, Real Estate Australia, Property Update
11) New home loan approvals in Sydney are surging, up 5% from last year
The number of new home loans approved in Sydney rose by 5% in 2024.
Early in 2024, the Sydney property market saw a rebound, with home values rising and sales activity picking up. This uptick likely motivated more people to apply for home loans, seeing a promising opportunity in property investments.
By July 2024, the average home loan amount for owner-occupiers hit a record high of $641,000, marking an 8% increase over the previous year. This indicates that many were ready to take on larger loans, possibly due to better economic conditions or personal financial growth.
As of November 2024, there was a noticeable increase in new listings in the Sydney property market, giving buyers more options and greater leverage. This surge in supply might have spurred more loan approvals as buyers found properties that matched their needs.
These factors combined to create a favorable environment for homebuyers, leading to a rise in loan approvals as more people sought to capitalize on the market conditions.
Sources: Sydney Slice, EEMortgageBroker
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12) Sydney's rental prices are surging, with a 6% increase last year
In 2024, Sydney's rental prices jumped by 6% compared to the previous year.
This increase was largely due to a supply and demand imbalance in the rental market. With vacancy rates dipping below 2-3%, there simply weren't enough homes available, leading to fierce competition among renters.
Seasonal trends also played a part. Typically, the first quarter sees stronger rental growth, and while the pace was slower than in past years, this seasonal boost still contributed to the overall rise in rental prices.
Financial pressures and the cost of living crisis forced renters to make tough choices. Many moved further from work, settled for lower-quality homes, or shared spaces, which in turn increased demand in certain areas.
These dynamics created a challenging environment for renters, as they navigated a market where competition was intense and options were limited.
For those considering buying property, understanding these factors is crucial, as they highlight the current state of Sydney's rental market and its potential impact on property investments.
Sources: Domain June 2024 Rental Report, Domain News, Domain March 2024 Rental Report
13) Properties within 10 km of Sydney CBD surged 7% last year
Properties within a 10 km radius of Sydney’s CBD appreciated by an average of 7% last year.
This growth is largely driven by strong demand and limited supply in Sydney's real estate market. The median dwelling price in the city hit $1.096 million, reflecting a nearly 6% increase from the previous year. Such figures underscore the competitive nature of the market.
Some suburbs have seen even more impressive gains. Campsie, just 8.5 km from the city center, experienced a 9.7% rise in median house prices. Meanwhile, Bexley, located 9.7 km from the CBD, saw a staggering 24% increase. These numbers highlight the intense interest in these inner-city areas.
Investments in public transport and infrastructure are also playing a crucial role. With the return to office work post-pandemic, these areas have become highly attractive to buyers looking for convenience and accessibility.
These factors collectively contribute to the robust growth in property values within this area. The combination of demand, infrastructure improvements, and strategic location makes these suburbs particularly appealing.
Sources: Domain, Realestate.com.au, Property Update
14) 60% of Sydney apartments built post-2020 are high-density
Sydney is experiencing a boom in high-density apartment construction.
This shift is primarily due to the city's growing population and the limited space available in urban areas. High-density apartments are a smart way to use land efficiently, especially in inner-city and middle-ring suburbs where space is scarce.
Regulations also play a big part in this trend. The NSW Productivity Commission points out that planning restrictions can limit housing development. By allowing slightly higher densities, more housing can be built without needing extra land, making high-density apartments a practical solution.
These developments aren't just about housing; they mix residential spaces with retail, entertainment, and commercial activities. This approach maximizes urban land use, although it can lead to increased social contact and potential stress for residents. Despite these challenges, the economic benefits make high-density apartments a popular choice.
About 60% of Sydney apartments built after 2020 are considered high-density, reflecting this trend. This is a response to both the demand for housing and the regulatory environment that supports higher density living.
High-density living offers a vibrant lifestyle with everything close by, but it also means adjusting to a more compact way of life. For many, the trade-off is worth it for the convenience and community feel.
Sources: Reserve Bank of Australia, MDPI, Altus Group
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.