Sydney property market data, trends, forecasts

Sydney property market news

The Sydney property market has proved to be incredibly resilient over recent years. After a historic period of growth over the 2021 property boom that saw median values shoot up +25.3 per cent in just 12 months, Sydney house prices corrected at a sharp rate, according to CoreLogic data. 2023 saw a sudden and unexpected turnaround, though, as home values returned to near-peak levels. The pace of growth slowed significantly towards the end of 2024, but Sydney is once again on the rise in 2025. 

Sydney property prices - February 2025

Rising interest rates were the leading driver of the correction phase in a city where affordability has been stretched to the limit, and both sellers and buyers have been acting with a level of caution until there is more clarity about when rates will settle. The high-rate environment gradually took the heat out of the market in 2024 but the arrival of a rate cut in February 2025 has resulted in a rapid turnaround. 

Compared to 12 months prior, new listings for February were down -1.2 per cent in Sydney while total listings were up +3.1 per cent, indicating a slightly slower start to the year for sellers. Sales volumes got a +1.5 per cent bump year on year in February, so buyers are still out there in the market.

Currently, Sydney's median days on market (DOM) has risen significantly to 48 days for the quarter, up from 38 days in February 2024, so sellers should approach the process with patience as buyers appear to be acting with less urgency.

House prices in Sydney

The 2021 property boom saw Sydney house prices surge to record highs before reaching their peak early in 2022. Detached housing lost significant value rapidly since that point, but surprisingly strong and consistent growth returned over 2023. Gains eased back in 2024, though, until a sudden reversal in early 2025. 

Sydney house prices - February 2025

The median house price in Sydney got a +0.3 per cent boost in February, bucking a consistent cooling trend that's still left quarterly gains in negative territory of -1.0 per cent. Annual price changes remain positive at +1.3 per cent but that figure has continued to decline.

Top 5 Sydney suburbs for first home buyers - houses

Sydney's median house price is still incredibly high, so affordability is hard to come by for first home buyers. Here are some of our top picks for Sydney suburbs where you can buy well below the median house price. 

Top Sydney suburbs under $1 million house price

Unit prices in Sydney

Unlike houses, the median unit price in Sydney grew at a more measured rate through the 2021 boom as the pandemic drove a ‘race for space’ mentality amongst buyers. The good news for unit owners was that apartment prices then fell at a more gentle pace throughout the downturn — but, like houses, prices were on the rise again throughout 2023. Things wound down somewhat in 2024 but units have been closely matching houses and have been outperforming recently.

Sydney unit prices - February 2025

Sydney's median unit price notched up by +0.2 per cent in February to just over $855,000. On a quarterly basis, that brings movement to -0.4 per cent, while annual change is closer to flat at +0.7 per cent. Bolstered demand for units due to rising immigration, renewed investor interest and fresh activity from first home buyers priced out of the house market or the extremely tight rental market helped to drive growth throughout 2023 and 2024. 

Top 5 Sydney suburbs for first home buyers - units

Units offer better affordability for first home buyers in Sydney, although median prices are still substantial. Here are some of our top picks for Sydney suburbs where you can buy well below the median unit price. 

Top Sydney suburbs under $800,000 unit price

Sydney property market forecast 2025

2024 was a year of two halves. Prices remained steadier in the first six months of the year before falling off later on and drifting into 2024. So what are the big banks saying about what to expect as we move into 2025?

NAB's latest Sydney house price forecast now has Harbour City dwellings pushing up by just +2.3 per cent in 2025.

Westpac's Sydney real estate forecast now sees similarly steady growth for 2025 at +3.0 per cent.

Big banks' Sydney home price forecasts 2025

Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the rest of the year. High interest rates had extensive impacts on the market, and Sydney's performance over 2025 will be closely tied to the RBA's interest rate decisions moving forward. 

Currently, the RBA sits at 4.10 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022 but, thankfully, beginning to head down. The banks expect there will be no further hikes, with rate cuts to continue through 2025.

Big banks' cash rate forecast 2025

• CBA: Peak of 4.35% in November 2023, then dropping to 3.35% by December 2025
• Westpac: Peak of 4.35% in November 2023, then dropping to 3.35% by December 2025
• NAB: Peak of 4.35% in November 2023, then dropping to 3.10% by February 2026
• ANZ: Peak of 4.35% in November 2023, then dropping to 3.85% by August 2025

Sydney house prices outperformed units throughout the rebound but units and more affordable houses could be well-placed to deliver stronger gains throughout 2025.

Units and entry-level houses are expected to appeal further to incoming investors and first home buyers as immigration has ramped up significantly, bringing additional demand to the rental market in particular.

What are industry experts saying?

Michael Yardney - Director of Metropole Property Strategists

"Despite more homes being listed for sale and rising prices making property less affordable, the Sydney property market is expected to keep steaming ahead in and well in 2025.

A slowdown in construction has hampered the supply of new housing, concentrating buyer demand on existing properties.

While the high end of the Sydney property market led this new phase of the property cycle in 2023, more recently cheaper properties are recording stronger price growth.

Buyer and seller confidence will increase as interest rates keep falling over the next year or two, and buyers will return to the Sydney property market."

Louis Christopher - Managing Director at SQM Research

"There has been a substantial rise in old listings for Sydney and Melbourne, indicating an overhang of sorts for those two cities.

These numbers do not yet reflect any shift in sentiment from either buyers or sellers following the February interest rate cut. 

And I note asking prices still show some softness in our two largest capital cities. Going forward, it is likely we will record another rise in listings for the current month of March. Then the listings market is likely to go into a bit of a hiatus for the April public holiday period and will stay that way until the Federal Election has concluded."

Sydney house prices graphs and charts

CoreLogic's latest chart pack clearly shows the rapid acceleration, subsequent deceleration, and then rebound of the Sydney property market over the past five years.

The upswing during the 2021 boom was one of the most aggressive periods of growth in Australian history. The downturn was equally historic, with prices falling more than 13 per cent in 12 months, before the worm turned once again. 

Looking at the wider context of the past 30 years, though, prices in Sydney have skyrocketed. The below chart shows Sydney house prices surging well beyond every other capital city, particularly over the past four years.

When taken into the perspective of even the past decade, Sydney homeowners have experienced huge gains to their property values. 

Selling Sydney property

According to Domain, Sydney's auction clearance rate has seen a marked improvement since the beginning of the year. Days on market (DOM) in Sydney, however, has risen considerably as some heat came out of the market in the latter half of 2024.

Sydney property investment

The Sydney property market is a mixed proposition for investors. Prices are sitting around all-time high levels, however rental vacancies are still recovering from record lows. Asking rents continue to increase, and further demand is expected as population growth remains at historic levels. High interest rates have driven some investors out of the market, though, as ballooning mortgage repayments have outweighed higher rents in some cases.

Top 5 suburbs for Sydney investors

BuyersBuyers' latest Investor Special Report detailed some of the top suburbs where Sydney investors could find strong potential. 

BuyersBuyers' co-founder Pete Wargent explained that, thanks to immigration, "there will be a lot of demand for rentals which will bring investors back in. Most of the picks are driven with that dynamic in mind."

Top suburbs for investors to buy units in Sydney

The report noted that "the best opportunities in the unit market are set to be in the established housing market rather than for expensive new builds. Look for boutique apartment blocks with a high land value content and units with a point of scarcity, such as a view.

Looking to invest in Sydney property? 

• Check out our list of best suburbs to invest in Sydney for 2024
• Dig into some expert advice on where to find the top 10 suburb picks for Australian investors
• Find out the Sydney suburbs with the highest rental yield
• On a budget? Here are the top 10 cheapest suburbs to buy in Sydney