Sydney property market data, trends, forecasts

Sydney property market news - key takeaways

• Price growth continues: Sydney home values increased by +0.8 per cent in September, with a quarterly rise of +2.1 per cent. This marks the highest three-month rate of change since October 2023, according to Cotality’s latest figures.
• Supply constraints persist: Cotality’s data indicates that the number of homes advertised for sale in Sydney was -11.8 per cent compared to last year and -3 per cent below the previous five-year average, highlighting ongoing supply challenges.
• Auction clearance rates steady: Domain data shows Sydney's auction clearance rate held at 70 per cent for the week of October 5, 2025, reflecting stable demand in the Sydney property market.
• Rental market tightens: Insights from SQM Research reveal that Sydney's rental market remains tight, with house rents up +4 per cent over the past 12 months. SQM data also indicates a low vacancy rate of 1.7 per cent.
• Interest rates hold steady: The RBA has kept the cash rate at 3.60 per cent, with major banks predicting no further cuts in 2025. This stable rate environment is expected to support steady price growth in the Sydney property market.

Sydney property price movements

The Sydney property market is on the rise, with house prices showing more growth than units. Despite these gains, affordability remains a challenge due to high living costs and limited housing supply.

Sydney property prices - September 2025

Sydney's property values have been climbing steadily. As of September 2025, there was a +0.8 per cent monthly increase and a +2.1 per cent rise over the quarter. Over the past year, property values have grown by +3.0 per cent, pushing the median value to $1,241,054.

^{Source: Cotality}

The market benefits from low interest rates and improved consumer sentiment, boosting buyer demand. However, the limited number of homes for sale continues to drive prices up.

House prices in Sydney

The Sydney housing market is performing well, with house prices rising by +0.9 per cent over the past month and +2.4 per cent over the quarter. Annually, Sydney house prices have increased by +4.0 per cent, bringing the median house price to $1,550,563.

^{Source: Cotality}
The Sydney housing market faces affordability challenges as house prices grow faster than incomes. Despite this, demand remains strong due to limited supply and keen buyer interest.

Unit prices in Sydney

Sydney unit prices have seen a slower increase, with a +0.5 per cent rise monthly and a +1.3 per cent quarterly increase. Over the past year, Sydney unit prices have grown by +0.3 per cent, with the median unit price now at $880,777.

^{Source: Cotality}

The unit market in Sydney is growing more slowly than the housing market, partly due to affordability issues and a larger supply of units. However, demand for units is expected to stay steady, supported by investor interest and first-home buyers looking for more affordable options.

Sydney property market forecasts 2025-2026

Australia’s big four banks regularly release house price forecasts as part of their economic research. This helps them make informed mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here’s what they expect for 2025 and 2026 across the country.

<sup>Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook. No prediction data for Canberra or Darwin.
* ANZ estimate for Capital Cities, not national</sup>

Sydney is predicted to see moderate growth compared to other major cities. These Sydney property market predictions suggest a steady increase in property prices. While Sydney might not lead the nation, it will continue to experience healthy demand, driven by limited supply and ongoing buyer interest.

Sydney home price forecasts 2026

Westpac forecasts a +5.0 per cent increase in Sydney property prices for 2026, while ANZ predicts a slightly lower growth of +5.3 per cent. These forecasts are shaped by expectations of stable interest rates and a gradual improvement in borrowing capacity. 

Sydney’s market is likely to benefit from ongoing infrastructure projects and a tight rental market, which could support demand. However, affordability constraints and high listing prices in some areas may slow the pace of growth.

RBA cash rate forecast 2025-2026

With the RBA keeping the cash rate at 3.60 per cent at its late-September meeting, attention has shifted to whether the Board will move again before year-end or wait until early 2026. The current focus is on the next CPI print and signs that services inflation and wage growth are easing, against a still-tight rental market and resilient jobs. 

The four major banks have updated their views, mostly agreeing on “no further 2025 cuts,” with one notable exception.

• CBA: No further move in 2025; a -0.25 percentage point cut in February 2026 (cash rate to 3.35 per cent by early 2026).
• Westpac: Expects a -0.25 percentage point cut in November 2025, then two more in February and May 2026 (cash rate to 2.85 per cent by mid-2026).
• NAB: No further move in 2025; a -0.25 percentage point cut in May 2026 (cash rate to 3.35 per cent by mid-2026).
• ANZ: No further move in 2025; a -0.25 percentage point cut in February 2026 (cash rate to 3.35 per cent by early 2026).

What this means for the Sydney market

Sydney usually reacts quickly to rate changes, but with affordability already stretched, a longer “on hold” period through spring will likely lead to steady rather than spectacular gains. Listings have been rebuilding, and earlier 2025 cuts have already improved borrowing capacity, keeping buyer interest reasonable without causing runaway prices. 

If November is a hold, as three of the four major banks expect, anticipate more of the same: competitive mid-ring family markets, premium segments driven by scarcity, and continued under-supply in quality stock. 

A February 2026 cut, as expected by CBA and ANZ, could be the catalyst for a stronger autumn 2026 run. Recent Cotality readings show Sydney’s growth pace trailing behind resource-state leaders, aligning with this “steady climb” scenario.

Sydney house prices graphs and charts

Sydney house price growth over the last 5 years has seen its ups and downs, but recent trends are looking up. As of September 2025, Sydney's dwelling values rose by +0.8 per cent for the month, +2.1 per cent over the quarter, and +3.0 per cent annually, hitting a new peak.

The five-year chart shows a rapid rise in 2020-2021, fuelled by ultra-low interest rates and high savings. This was followed by a sharp drop in 2022 due to rate hikes. However, things turned around in 2025 with the first rate cut in four years, leading to steady monthly increases.

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 October 2025 is navigating a mix of influences, with sales activity dipping slightly from last year. The market dynamics hint at cautious buyer behaviour, as properties are taking longer to sell, reflecting a shift in conditions.

Sydney sales volume and days on market

In September 2025, Sydney saw a -4.0 per cent drop in sales volume compared to the same time last year. The median days on market for Sydney properties stretched to 33 days, a bit longer than the national median of 30 days.

^{Source: Cotality}

The increase in median days on market from 30 to 33 days over the past year suggests buyers are taking more time to decide. This trend contrasts with faster-moving markets like Brisbane, where properties sell in just 21 days. The longer selling times in Sydney could be due to cautious buyer sentiment and a more competitive market environment.

Sydney new and total listings

Sydney experienced a -7.9 per cent drop in new listings and an -11.8 per cent decrease in total listings from September 2024 to September 2025.

^{Source: Cotality}

The decline in new and total listings points to a tightening market, with fewer properties up for sale. This scarcity might be contributing to the longer days on market, as buyers have fewer options and may be more selective. Compared to other cities, Sydney's decrease in listings is less severe than Brisbane's -18.7 per cent drop in new listings, suggesting a relatively stable market environment.

Sydney vendor discount and auction clearance rates

Vendor discounting and auction clearance rates are key indicators of market health. Vendor discounting shows the gap between asking and sale prices, while auction clearance rates reveal the proportion of properties sold at auction. Together, these metrics offer insights into buyer and seller dynamics.

Sydney vendor discount

^{Source: Cotality}

Sydney's vendor discount rate over the last three months was -2.9 per cent, matching the combined capital cities' median. This suggests sellers aren't significantly lowering prices to close deals, indicating a balanced market where demand remains stable despite the drop in sales volume.

Sydney auction clearance rates

^{Source: Domain}

Sydney's auction clearance rate for the week of October 5, 2025, was 70 per cent. This strong figure points to solid buyer interest and competitive bidding, even with the overall decline in sales volume. The steady clearance rates over the past four weeks suggest a resilient market, with committed buyers eager to participate in auctions for desirable properties.

Sydney property investing

Sydney’s rental market is currently navigating a challenging landscape, marked by tight conditions and emerging signs of stability. Here, you'll find insights into rental rates, yields, and vacancy trends that are shaping the market in Sydney.

Sydney rental market

Rental rates in Sydney have increased moderately, indicating a stabilization after a period of rapid growth. Gross rental yields remain relatively low compared to other capitals, reflecting high property values relative to rental income. These dynamics are crucial for understanding the metrics presented below.

^{Source: Cotality}

Sydney's rental market continues to experience strong demand, especially in established areas. Although rental growth has eased slightly, the market remains under pressure due to limited new supply. This has kept rents rising, particularly for houses, as the demand-supply imbalance persists.

Sydney vacancy rates

Vacancy rates are a key measure of the rental market's balance, showing how easily tenants can find properties and negotiate rents. Nationally, vacancy rates have stayed low, indicating a tight rental market, although some cities are beginning to show signs of easing. Sydney's vacancy rate is a crucial indicator of these trends.

^{Source: SQM Research}

In Sydney, the vacancy rate was 1.3 per cent in September 2025, reflecting a tight market despite a slight increase from previous months. This rate is below the balanced range of 2–3 per cent, indicating ongoing pressure on tenants. Compared to other cities, Sydney's vacancy rate is higher than Brisbane's but lower than Melbourne's, highlighting its unique market dynamics.

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

“The national vacancy rate holding at 1.2% suggests the rental market remains very tight, with little sign of meaningful supply increases. Sydney and Brisbane continue to see strong tenant demand, while Hobart remains at near record-low vacancy levels. Rents are still rising in most capitals, particularly for houses, despite a slight easing in rental growth rates compared to last year. Overall, we are still seeing an undersupplied rental market, although conditions appear to be stabilising in some cities such as Melbourne and Canberra.”

Sydney's lower vacancy rate at 1.3 per cent, with limited new supply, keeps conditions tight. Rising advertised rents, led by houses, support the view that rents are still climbing even as growth moderates. With 9,617 vacancies and a +1.1 per cent monthly lift in combined rents, pricing pressure remains skewed toward landlords. Unless rental listings expand significantly, Sydney is likely to remain below the 2–3 per cent “balanced” range, maintaining upward pressure on house rents.

^{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.