Sydney property market data, trends, forecasts

Sydney property market news - key takeaways

• Sydney property market softening: Sydney dwelling values fell -1.2 per cent in June 2026 and are now -3.7 per cent below the record high reached in January, with the quarterly decline of -3.2 per cent pointing to sustained downward momentum.
• Stock rising, sales slowing: Total listings climbed +12.4 per cent year on year as properties sit on the market longer, giving buyers noticeably more choice than at any point in the past twelve months.
• Auction conditions favour buyers: Sydney's clearance rate sat at 50.7 per cent from 444 auctions in the week ending 12 July 2026, a soft result that points to demand running well below the volume of homes brought to market.
• Rents still climbing despite softer values: Sydney rents rose +5.9 per cent over the year to June 2026, with houses gaining +6.6 per cent, even as the vacancy rate held steady at 1.6 per cent.
• Rate relief still some way off: The RBA cash rate sits at 4.35 per cent, and while three of the four major banks expect cuts to follow, the earliest forecast move is not until mid-2027, meaning borrowing costs are likely to remain a constraint on buyer demand throughout 2026.

Sydney property price movements

The Sydney property market has continued to ease through the middle of 2026, with values falling across both houses and units over the month. Conditions have shifted meaningfully since the start of the year, with quarterly figures now in clear negative territory.

Sydney property prices - June 2026

Sydney home values fell -1.2 per cent in June 2026, extending a run of monthly declines that has now accumulated to -3.2 per cent over the quarter. Annual growth has held at +0.3 per cent, though the gap between where values sit today and where they were twelve months ago is narrowing quickly.

^{Source: Cotality}

The median Sydney home value reached $1,265,608 in June 2026, down around $15,309 from the prior month. Values now sit -3.7 per cent below the record high reached in January 2026, meaning the typical Sydney property has given back a meaningful share of its recent peak-cycle gains.

House prices in Sydney

Sydney house prices fell -1.5 per cent in June 2026, the steepest monthly decline of any Sydney dwelling type. The annual picture has also turned negative, with Sydney house prices now down -0.1 per cent over the year.

^{Source: Cotality}
The median house value sat at $1,556,258, down around $23,601 over the month. At the quarterly level, the -3.8 per cent decline shows how quickly conditions have shifted since the March quarter, with houses recording a larger share of the correction than units.

Unit prices in Sydney

Sydney unit prices eased -0.6 per cent in June 2026, a softer monthly movement than houses but still a step in the same direction. On an annual basis, Sydney unit prices are +1.1 per cent higher than a year ago, making units the only segment still in positive annual territory.

^{Source: Cotality}

The median unit value reached $898,623, slipping around $5,434 over the month. The quarterly decline of -1.8 per cent is notably smaller than the -3.8 per cent recorded for houses, suggesting units have held up comparatively better as buyers weigh affordability across the two segments.

Sydney property market forecasts 2026

Australia's Big Four banks publish annual dwelling price forecasts as part of their economic research, and views on the Sydney market for 2026 differ considerably. The spread this year is wide enough that it tells two quite different stories about where values are headed by December.

• CBA predicts Sydney property prices to rise +2.0 per cent over 2026.
• Westpac predicts Sydney property prices to fall -3.0 per cent over 2026.
• NAB's published forecast is at the New South Wales state level; it predicts dwelling prices to rise +1.3 per cent over the next 12 months across New South Wales.
• ANZ predicts Sydney property prices to fall -0.7 per cent over 2026.

On the Sydney house price forecast spectrum, CBA sits at the optimistic end, calling a +2.0 per cent gain, while Westpac occupies the other extreme at -3.0 per cent. ANZ's -0.7 per cent sits closer to Westpac's view than to CBA's, and NAB's +1.3 per cent figure, which applies to New South Wales broadly rather than Sydney specifically, lands near the middle of the range. The Sydney property market predictions across the Big Four reflect genuine disagreement about how much the current price softening will weigh on the full-year result.

RBA cash rate forecast 2026

The RBA cash rate currently sits at 4.35 per cent. Three of the four major banks expect the next move to be a cut, though Westpac stands apart, forecasting a rise rather than relief for borrowers.

According to Canstar:

• ANZ predicts that we’ll see 25 basis point cuts in September and December of 2027, bringing the cash rate to 3.85% by the end of next year.
• CBA predicts that we’ll see 25 basis point cuts in May and August of 2027, bringing the cash rate to 3.85% by the third quarter of next year.
• NAB predicts that we’ll see 25 basis point cuts in June, September and December of 2027, bringing the cash rate to 3.60% by the end of next year.
• Westpac currently predicts two more 25 basis point hikes in August and September, bringing the cash rate to 4.85%.

What this means for the Sydney market

At 4.35 per cent, the cash rate continues to weigh on borrowing capacity in a market where the median dwelling value sits at $1,265,608. For Sydney buyers, the gap between what they can borrow and what properties cost remains one of the tightest in the country.

If the cutting scenario held up by ANZ, CBA, and NAB plays out through 2027, the relief would arrive gradually rather than immediately, and Sydney prices will have already absorbed another year of pressure before borrowing costs ease. Westpac's divergent call adds a further layer of uncertainty: a cash rate at 4.85 per cent would tighten conditions meaningfully for variable-rate borrowers and could extend the current period of softer demand, particularly at the upper end of the market where values have already fallen furthest this quarter.

NAB's forecast references New South Wales as a whole, and its data was sourced in Q1 2026. Both NAB's and CBA's house price forecasts predate the sharper quarterly decline recorded through the June quarter, so those banks may revise their Sydney and New South Wales views in coming months.

Helpful resource: Our simple guide to tracking market trends and data will walk you through everything you need to know to be able to read the market and make a smarter selling decision.

Sydney house prices graphs and charts

Sydney's house price growth over the last 5 years has taken a significant turn in recent months, with dwelling values falling -1.2 per cent in June 2026, -3.2 per cent over the quarter, and just +0.3 per cent over the year, leaving the current dwelling median at $1,265,608, according to Cotality's latest figures.

The five-year chart captures a market shaped by two distinct forces: the sharp rate-hiking cycle that began in mid-2022, which pushed values lower before a recovery period took hold through 2024 and into early 2025, and a renewed softening that has gathered pace since late 2025 as the cash rate held at 4.35 per cent, total listings climbed +12.4 per cent above year-ago levels, and buyer demand pulled back across the city.

Sydney property 30 year property price graph

Sydney property prices growth over the last 10 years has been strong overall: a large upswing into 2021 was followed by a correction in 2022 and a steady rebuild of momentum through 2023–2025, demonstrating long-run demand, tight supply and the outsized role of interest-rate moves in recent cycles.  

Over the past three decades Sydney has recorded some of the biggest cumulative gains in Australia, but the path has been boom–bust–recovery cycles driven by changes in credit, investor activity and population growth; today homeowners feel more cautious than in 2021 while many buyers are still watching rates and affordability, balancing a desire to buy with a need for certainty about repayments and timing.

Sydney selling statistics

Selling conditions in Sydney have shifted meaningfully over the past year. Stock on market has risen, properties are taking longer to sell, and vendors are accepting bigger gaps between their asking price and the final sale figure. The data points in one direction: buyers have more choice and more room to negotiate than they did a year ago.

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Sydney sales volume and days on market

Sydney sales volume fell -2.2 per cent year on year, a steeper drop than the combined capitals average of -0.7 per cent and well below the national figure, which rose +2.1 per cent over the same period. Properties are also taking longer to find buyers, with median days on market sitting at 37 days compared with 35 days a year ago.

^{Source: Cotality}

Sydney's 37-day median selling time is notably slower than the combined capitals average of 30 days and the national average of 32 days. That seven-day gap suggests Sydney sellers are waiting longer for offers to arrive, which tends to give buyers more time to compare options before committing.

Sydney new and total listings

New listings fell -8.2 per cent year on year, meaning fewer owners are choosing to list fresh property in the current environment. At the same time, total listings climbed +12.4 per cent, as homes are sitting on the market long enough for stock to accumulate.

^{Source: Cotality}

The combination of fewer new listings and a larger total pool tells a clear story: properties aren't selling as quickly as they arrive, so the overall count builds. For buyers, that means more choice. For sellers, it means more competition from other listings on any given weekend.

Sydney vendor discount and auction clearance rates

Vendor discount measures how far a final sale price sits below the initial asking price, expressed as a percentage. Auction clearance rates show what share of properties offered at auction are sold on the day. Together, they give a practical read on how much pressure sellers are under and how active buyers are in the market right now.

Sydney vendor discount

^{Source: Cotality}

Sydney's vendor discount widened to -4.0 per cent from -3.4 per cent a year ago, a shift of 0.6 percentage points. That means sellers are, on average, accepting offers that sit further from their original asking price than they were twelve months back, consistent with the softer demand conditions across the broader market.

Sydney auction clearance rates

^{Source: Cotality}

For the week ending 12 July 2026, Sydney recorded a clearance rate of 50.7 per cent from 444 auctions, with 225 properties sold and 137 passed in. A rate in the low 50s sits well below the long-run average of around 64 per cent and points to clearly buyer-favourable conditions, where demand is not keeping pace with the volume of properties brought to auction.

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Sydney property investing

Sydney's rental market continues to apply meaningful pressure on renters, with asking rents rising well above general inflation over the past year. For investors, that income growth is a partial offset against the capital value softening the city has seen in recent months.

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Sydney rental market

The table below covers Sydney's annual rent change across houses and units, gross rental yield, and how these figures compare with other capital cities and broader national benchmarks.

^{Source: Cotality}

Sydney rents rose +5.9 per cent over the year to June 2026, with houses gaining more ground (+6.6 per cent) than units (+4.7 per cent). At 3.3 per cent, Sydney's gross rental yield sits at the lowest end of the capital city range, tied only with Brisbane, which tells you how far values have run relative to rental income over time. Investors in higher-yielding markets like Darwin and Hobart are collecting a larger income return per dollar of property value; Sydney's yield reflects a market where purchase prices are still high even as values have eased from the January 2026 peak.

Sydney vacancy rates

Vacancy rates are the clearest single measure of rental market pressure: when fewer properties sit empty, competition among renters tends to push rents higher and make leasing quicker. SQM data shows that Sydney's vacancy rate has moved only marginally over the past twelve months.

^{Source: SQM Research}

Sydney's vacancy rate sits at 1.6 per cent, essentially flat on the 1.6 per cent recorded a year ago, with the absolute count of vacant properties rising from 11,482 to 11,957. That puts Sydney above the national rate of 1.3 per cent and broadly in line with Melbourne, but well above the tighter conditions in Brisbane, Adelaide, Perth and Hobart, where vacancy rates remain well below 1 per cent. The city has more breathing room for renters than most capitals, though at 1.6 per cent, available stock is still low by historical measures.

Louis Christopher, Managing Director at SQM Research said in the latest rental market report:

"While the national vacancy rate has edged up to 1.3%, Australia's rental market remains exceptionally tight by historical standards. Most capital cities continue to record vacancy rates below one per cent or only marginally above, highlighting that rental supply remains insufficient to meet demand."

Sydney sits on the looser end of that national picture, with its 1.6 per cent vacancy rate giving renters marginally more choice than in the tightest cities. The rent growth the data shows reflects that same picture: even at the upper end of the vacancy range among capitals, Sydney is not producing enough rental stock to meaningfully ease competition. For investors, that supports continued income growth, even as the rate of rent increases is more measured here than in Perth, Hobart or Darwin.

Highest growth areas in Sydney

Sydney's strongest annual price gains in June 2026 came from the city's outer western, south-western and Central Coast corridors. The table below ranks the top 10 Statistical Area Level 3 (SA3) regions across Greater Sydney by annual percentage change, an SA3 is an ABS geographic classification that typically groups several adjacent suburbs into a single region for statistical purposes.

^{Source: Cotality}

Highlights for Sydney’s high growth areas

• Penrith: Ranked #1 with annual growth of +9.8 per cent and a median value of $1,092,427, Penrith leads the city's growth table on the strength of relative affordability and ongoing infrastructure investment in Sydney's outer west. Suburbs such as Glenmore Park and Jordan Springs have drawn steady buyer interest from households seeking more space at a lower entry point than inner and middle-ring markets can offer.
• Richmond - Windsor: Ranked #2 with annual growth of +9.2 per cent and a median value of $1,009,689, Richmond - Windsor sits at the more accessible end of Sydney's price range, drawing buyers willing to trade commute time for land size and lifestyle. North Richmond is among the suburbs within the region where that demand has been most active.
• Campbelltown (NSW): Also recording +9.2 per cent annual growth, Campbelltown (NSW) shares the second rank with a median value of $1,020,715, making it one of Sydney's more affordable growth corridors. Suburbs such as Bardia and Ingleburn have benefited from population growth in the outer south-west, supported by expanding local amenity and road and rail connections into the CBD.
• Outer-west affordability corridor: Ranks #4 and #5, St Marys (+9.0 per cent, $1,071,212) and Wyong (+9.0 per cent, $966,059), both reflect buyer demand at the city's price-accessible fringes. St Marys, where the suburb of St Marys itself has seen consistent demand, sits within Sydney's outer western transport network, while Wyong on the Central Coast offers lifestyle appeal, with suburbs such as Toukley and Long Jetty drawing buyers seeking a coastal setting at a sub-$1,000,000 median.
• South-west growth arc: Ranks #6 through #8, Camden (+8.0 per cent, $1,218,268), Bringelly - Green Valley (+7.8 per cent, $1,243,357) and Mount Druitt (+7.8 per cent, $992,321), form a broad growth band across Sydney's outer south-west and western suburbs. Camden, home to established suburbs such as Harrington Park and Spring Farm, has attracted families drawn to newer housing stock and local growth in retail and schooling infrastructure, while Gregory Hills in the Bringelly - Green Valley region and Rooty Hill in Mount Druitt round out a corridor where relative value has continued to support demand even as broader Sydney conditions have softened.

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