Sydney property market data, trends, forecasts

Sydney property market news - key takeaways

• Price growth steady: Sydney dwelling values saw a +0.6 per cent increase in July, keeping pace with June's growth. Despite affordability challenges, house values have climbed +3.3 per cent in the first seven months of the year, compared to a +0.7 per cent rise in unit values, as noted by Cotality’s analysis.
• Demand outstripping supply: According to Cotality’s data, the Sydney property market is grappling with low inventory levels. National listings are 20 per cent below the five-year average, which continues to drive price pressures.
• Auction clearance rates robust: Domain data shows Sydney's auction clearance rate was 71 per cent for the week of August 3, 2025. This indicates strong buyer demand and competition.
• Rental market tight: SQM reports Sydney’s vacancy rate was 1.5 per cent in April 2025, highlighting a tight rental market. Cotality data reveals a +0.4 per cent rise in rental growth in July, marking the highest monthly increase since April last year.
• Interest rates easing: The RBA reduced the cash rate by 0.25 percentage points to 3.60 per cent in August 2025, with more cuts anticipated. This drop in interest rates is likely to boost borrowing capacity and buyer confidence in the Sydney property market.

Sydney property price movements

The Sydney property market is continuing in its latest growth phase, with dwelling values on the rise. Despite challenges with affordability, factors like low supply and decreasing interest rates are pushing prices up.

Sydney property prices - July 2025

In July 2025, Sydney's property prices increased by +0.6 per cent, keeping up the growth seen in previous months. Over the quarter, values climbed by +1.8 per cent, and annually, they rose by +1.6 per cent. The median property value in Sydney is now $1,228,435.

^{Source: Cotality}

This consistent rise in property values mirrors a national trend, where low supply and steady demand are driving prices higher. Sydney has historically reacted very positively to interest rate cuts, and current conditions suggest this trend will continue.

House prices in Sydney

Sydney's housing market is showing strong growth, with house prices up by +0.8 per cent in July 2025. Over the quarter, house values increased by +1.9 per cent, and the annual rise was +2.2 per cent. The median house price in Sydney is now $1,525,956.

^{Source: Cotality}
The Sydney housing market benefits from low supply and strong demand, especially in family-friendly suburbs. This has led to a notable increase in Sydney house prices, despite affordability issues.

Unit prices in Sydney

Unit prices in Sydney have seen a more modest increase, with a +0.2 per cent rise in July 2025. Over the quarter, unit values went up by +1.3 per cent, while the annual change remained flat at 0.0 per cent. The median unit price in Sydney is now $868,341.

^{Source: Cotality}

The Sydney unit market is growing more slowly compared to houses, reflecting a national trend where houses are outpacing units. Despite this, demand for units remains steady, supported by rising immigration and investor interest. The current environment of low interest rates and limited new supply continues to support Sydney unit prices.

Sydney property market forecasts 2025-2026

Australia's big four banks regularly release house price forecasts. These forecasts are part of their economic research to guide mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here's what is anticipated for 2025 and 2026 across the country.

^{Sources: Westpac Housing Pulse, NAB Residential Property Survey, ANZ Australian Housing Chartpack, Commonwealth Bank Economic Insights}

Sydney is expected to see moderate growth compared to other major cities. The Sydney property market predictions indicate a steady rise in house prices, though nothing like the oversized boom seen in 2021. This positive trend is driven by factors such as easing borrowing costs and a limited housing supply.

Sydney home price forecasts 2025

Westpac predicts a +3.0 per cent increase in Sydney property prices for 2025, while NAB forecasts a +2.7 per cent rise. ANZ is slightly more optimistic, expecting a +4.6 per cent growth. 

These forecasts are shaped by the expectation of further cash rate cuts by the RBA, which would lower borrowing costs and potentially boost buyer confidence. However, affordability constraints and high listing prices in some areas may slow the pace of growth, resulting in a steady rather than sharp increase in prices.

RBA cash rate forecast 2025-26

On 12 August 2025, the RBA cut the cash rate by -0.25 percentage points to 3.60 per cent. The Bank cited inflation moving back into the 2–3 per cent target range, softer labour-market readings, and a subdued demand backdrop as key reasons for easing, while noting that uncertainty remains high. Here’s where the major banks think the cash rate is heading next:

• CBA: Two more cuts in 2025 (September and December), ending 2025 at 3.35 per cent, then two cuts in Q1 2026 to 2.85 per cent.
• Westpac: No September cut; two cuts by early 2026 (November 2025 and February 2026), to 3.10 per cent.
• NAB: One cut in September 2025 and another in February 2026, to 3.10 per cent.
• ANZ: Two cuts in 2025 (September and November), then two in Q1 2026, to 3.10 per cent.

What this means for the Sydney market

Sydney is typically the most rate-sensitive market, so cheaper borrowing costs tend to quickly influence buyer budgets and confidence. Expect more activity at open homes and faster decision-making, especially in middle-ring family suburbs, as borrowing capacity improves and listings remain lean. 

The combination of increased investor participation nationally and below-average new listings is a tailwind for prices into spring, though stretched affordability will moderate how far and fast values climb. Historically, Sydney’s upswings have been amplified in easing cycles; a similar pattern is likely as cuts take effect.

Sydney house prices graphs and charts

Sydney's house price growth over the last 5 years has been dynamic, with notable ups and downs. As of July 2025, dwelling values rose by +0.6 per cent for the month, +1.8 per cent for the quarter, and +1.6 per cent for the year, hitting a record high. This marks a recovery from the declines seen in 2022.

The five-year chart illustrates a full cycle for Sydney, beginning with a rapid rise in 2020-2021, followed by a dip in 2022 due to rate hikes, and then a recovery phase leading to new price peaks. Cotality's analysis indicates that recent months have seen growth picking up again, aided by better auction clearance rates and less vendor discounting.

Sydney property prices graph over 30 years

Sydney property prices growth over the last 10 years has been marked by significant volatility, influenced by interest rate changes and credit policy adjustments. The past decade saw a dramatic upswing during the COVID-19 pandemic, followed by a correction as interest rates increased. This pattern is consistent with Sydney's historical sensitivity to borrowing costs.

Over the last 30 years, Sydney's property market has experienced multiple cycles of boom and correction. The city's limited land supply and strong demand have consistently driven long-term price growth. Today, homeowners are cautious yet optimistic, as the market shows resilience despite high interest rates. The enduring demand and constrained supply continue to support property values, although the market sentiment has shifted towards stability and long-term value.

Sydney selling statistics

Sydney's property market in July 2025 is showing signs of stabilisation. Sales activity has dipped slightly compared to previous months, and the days on market have increased. This suggests buyers are being more cautious. However, auction clearance rates remain steady, indicating ongoing interest in the market.

Sydney sales volume and days on market

Sydney saw an -8.8 per cent drop in sales volume compared to the previous year. The median days on market rose to 39 days over the three months to July 2025, up from 31 days in July 2024.

^{Source: Cotality}

The longer median days on market suggest properties are taking more time to sell. Buyers might be more selective or waiting for better opportunities. Compared to Melbourne and Brisbane, where the days on market are 37 and 23 days respectively, Sydney's market seems to be lacking some urgency amongst buyers, though prices continue to rise.

Sydney new and total listings

Sydney experienced an -8.0 per cent decrease in new listings from July 2024 to July 2025, while total listings fell by +3.2 per cent over the same period.

^{Source: Cotality}

The drop in new listings suggests some sellers are holding out, potentially for the upcoming spring selling season. A decrease in total listings also indicates that buyers are actively acquiring homes on the market, fostering strong competition. 

Sydney vendor discount and auction clearance rates

Vendor discounting shows the percentage difference between the original asking price and the final sale price. Auction clearance rates measure the share of scheduled auctions that sell under the hammer or shortly after. Together, they highlight buyer negotiating power and the confidence in selling homes.

Sydney vendor discount

^{Source: Cotality}

The median vendor discount in Sydney over the last three months to July 2025 was -3.2 per cent. This indicates sellers are offering smaller discounts compared to earlier in the year. While the market may be cooling, sellers are still holding firm on their asking prices.

Sydney auction clearance rates

^{Source: Domain}

Auction clearance rates in Sydney have remained stable, with a rate of 71 per cent in the week of August 3, 2025. This stability suggests there is still a healthy level of demand, with buyers willing to engage in competitive bidding for desirable properties.

Sydney property investing

Sydney's rental market is currently on a growth trajectory, with rental rates steadily climbing. Despite affordability challenges, the market remains active, driven by supply and demand factors. Let's delve into the statistics on rental rates, yields, and vacancy trends to better understand Sydney's current rental landscape.

Sydney rental market

In July 2025, rental rates in Sydney showed an annual increase, with house rents rising by 1.8 per cent and unit rents by 3.6 per cent. Gross rental yields stand at 3.0 per cent, reflecting the high property values relative to rental income. This trend is part of a national pattern where rental growth is picking up after a stable period.

^{Source: Cotality}

Despite these increases, Sydney's rental market is under pressure due to high demand and limited supply, especially in the inner and middle rings. The influx of students and new arrivals continues to strain the rental stock, particularly for units.

Sydney vacancy rates

Vacancy rates are key indicators of the rental market's health, showing the balance between supply and demand. Nationally, vacancy rates are tight, pushing rents upward. Sydney's vacancy rate is at 1.5 per cent, below the balanced range of 2–3 per cent, indicating a tight market.

^{Source: SQM Research}

Sydney's vacancy rate of 1.5 per cent in July 2025 is a slight decrease from the previous year's 1.7 per cent. This drop suggests a slight loosening of the market, offering tenants a few more options. However, the market remains tighter compared to other capitals like Melbourne, which has a vacancy rate of 1.8 per cent.

Louis Christopher, Managing Director of SQM Research said in his latest rental market report

“Vacancy rates remain tight across most capital cities, and this is continuing to place upward pressure on rents,” said Louis Christopher, Managing Director of SQM Research. “While there are short-term fluctuations—particularly in Perth and Canberra—the broader trend is clear: rental affordability is deteriorating, especially in Sydney, Brisbane, and Hobart. Unless we see a meaningful uplift in rental supply, particularly in the inner and middle rings of our major cities, the market will remain challenging for tenants heading into spring.”

Sydney’s vacancy rate rose to 1.5 per cent in April 2025, with vacancies increasing by 20.8 per cent to 10,784 properties. This rise in supply offers some relief, reflecting the typical winter lull. However, at 1.5 per cent, Sydney remains below the balanced range, indicating a still-tight market that could tighten further post-winter. Advertised weekly rents of $853 have held steady, reflecting the softer rent growth expected in a slightly eased market.

^{Source: Cotality}

Highlights for Sydney’s high growth areas

• Fairfield leads the pack with a median value of $1,170,000 and an annual growth of +7.6 per cent, indicating strong market demand.
• St Marys is holding steady at #2, with a median value of $990,000 and +7.3 per cent annual growth, making it attractive for families and investors alike.
• Wollondilly is making waves, ranked #3 with a median value of $1,070,000 and a growth rate of +7.8 per cent, showing rapid price increases.
• Bringelly - Green Valley is a newcomer at #4, boasting a median value of $1,140,000 and +7.2 per cent growth, likely boosted by recent infrastructure improvements.
• Bankstown remains solid at #5, with a median value of $1,340,000 and +6.8 per cent growth, demonstrating a stable, high-tier market despite wider fluctuations.