Sydney property market data, trends, forecasts

Sydney property market news - key takeaways

• Price growth continues: Sydney dwelling values rose by +0.7 per cent in October. The middle of the pricing spectrum saw a +1 per cent increase. This growth is driven by a scarcity of listings, with advertised stock levels nearly 12 per cent lower than last year.
• Supply remains tight: According to Cotality data, Sydney's advertised stock levels are 2.7 per cent below the five-year average. This highlights a persistent imbalance between supply and demand.
• Auction clearance rates stable: Domain data shows Sydney's auction clearance rate was 67 per cent for the week of November 2, 2025. This reflects a stable selling market despite affordability challenges.
• Rental market remains tight: Sydney's vacancy rate was 1.3 per cent in October 2025, down from 1.5 per cent a year earlier, indicating ongoing competition for rental properties.
• Interest rates steady: The Reserve Bank of Australia kept its cash rate at 3.60 per cent in November 2025. This stability in borrowing costs supports the upswing in the Sydney property market.

Sydney property price movements

The Sydney property market is on the rise, with dwelling values steadily increasing. However, the growth pace has eased a bit. Affordability challenges are starting to affect demand, but the limited number of listings is still keeping prices up.

Sydney property prices - October 2025

In October, Sydney's property values climbed by +0.7 per cent, continuing their upward trend. Over the quarter, values rose by +2.3 per cent, and on an annual basis, they are up by +4.0 per cent. The median value for Sydney properties reached $1,256,156.

^{Source: Cotality}

Sydney's property market benefits from a tight supply, with advertised stock levels much lower than in previous years. This limited supply, along with stable demand, keeps pushing prices up despite affordability issues.

House prices in Sydney

Sydney house prices increased by +0.6 per cent in October, contributing to a quarterly rise of +2.5 per cent. Annually, house prices have grown by +5.1 per cent, with the median house price now at $1,575,646.

^{Source: Cotality}
The Sydney housing market remains strong — despite affordability challenges, the limited number of listings has kept Sydney house prices resilient. The Sydney housing market continues to attract interest, although the pace of growth has slowed compared to earlier in the year.

Unit prices in Sydney

Sydney unit prices saw a monthly increase of +0.8 per cent in October, with a quarterly rise of +1.8 per cent. Over the past year, unit prices have increased by +1.2 per cent, bringing the median unit price to $886,379.

^{Source: Cotality}

The Sydney unit market is experiencing a steady rise in values, though at a slower pace compared to houses. Demand for units remains strong, driven by factors like their relative affordability compared to houses and ongoing interest from investors. Despite the slower growth, Sydney unit prices continue to reflect the overall positive trend in the city's property market.

Sydney property market forecasts 2026

Australia’s major banks regularly release house price forecasts to guide their mortgage-lending strategies, manage risks, and demonstrate their market knowledge. Here's a look at what’s anticipated for 2026 across the nation.

<sup>Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook. 
* ANZ estimate for Capital Cities, not national</sup>

Sydney is expected to see moderate growth compared to other capital cities, with predictions indicating a steady increase in property values. These Sydney property market predictions suggest a stable environment, supported by limited supply and consistent demand.

Sydney home price forecasts 2026

Sydney's property prices are projected to rise. Westpac and NAB both foresee increases, with Westpac predicting a growth rate of about 5.0 per cent, while NAB expects a slightly lower rate. This outlook is shaped by the Reserve Bank of Australia's (RBA) decision to keep the cash rate steady, which helps stabilise borrowing costs and boosts buyer confidence. Sydney's tight housing supply and ongoing demand are key factors driving these predictions, although affordability constraints may limit rapid price increases.

RBA cash rate forecast 2026

The Reserve Bank of Australia (RBA) maintained its cash rate at 3.60 per cent on 5 November 2025, following three earlier cuts of 0.25 per cent each. This decision came after inflation showed a surprise rise, with the RBA’s preferred trimmed-mean measure hitting 3.0 per cent, the top of its 2–3 per cent target band, and headline CPI running at 3.5 per cent annually, leaving no room for another rate cut in 2025. Major bank economists had initially expected a November cut but changed their predictions when inflation figures rose, correctly anticipating the RBA would hold steady.

• Commonwealth Bank (CBA): Expects no further cash rate cuts in this cycle, keeping the rate at 3.60 per cent into 2026.
• Westpac: Also sees no cuts for the rest of 2025, but forecasts a 0.25-per-cent cut in May 2026 and another in August 2026, bringing the cash rate down to 3.10 per cent by late next year.
• National Australia Bank (NAB): Predicts no additional 2025 cuts, with one 25-basis-point cut in May 2026 that would lower the cash rate to 3.35 per cent by mid-2026.
• ANZ: Similarly anticipates no more cuts in 2025, with the next move a 0.25-per-cent cut in February 2026, taking the cash rate to 3.35 per cent at the start of 2026.

What this means for the Sydney market

Sydney prices have rebounded to record highs, with annual growth now tracking near +4 per cent. The RBA’s decision to hold the cash rate at 3.60 per cent gives buyers confidence that borrowing costs have stabilised, keeping activity levels steady. 

Limited listings continue to support prices, even as stretched affordability caps how far many can go. Historically, Sydney responds quickly to rate changes, and this pause is reinforcing a modest, sustained recovery.

Sydney house prices graphs and charts

Sydney house price growth over the last 5 years has been quite a journey, featuring a dramatic boom, a sharp downturn, and a steady recovery. As of November 2025, dwelling values increased by +0.7 per cent over the month, +2.3 per cent over the quarter, and are now +4.0 per cent higher than a year ago, reaching a record high level.

According to Cotality, after a steep decline in 2022, Sydney's market found stability in early 2023. This was supported by paused rate hikes and low stock levels. The recovery picked up speed through 2024, driven by population growth and a slight interest rate cut in early 2025, which boosted buying power.

Sydney property prices graph over 30 years

Sydney property prices growth over the last 10 years has been significant, with values surging due to factors like low interest rates and high demand. The market experienced a notable boom from 2013 to 2017, followed by a correction, and then another rapid rise during the pandemic. This historical context highlights how Sydney's property market has been shaped by cycles of growth and correction, influenced by economic and policy changes.

Over the past 30 years, Sydney has seen repeated booms and busts, with long-term homeowners benefiting from substantial capital growth. Today, the sentiment among homeowners is cautiously optimistic, as the market stabilises with high demand and limited supply. Buyers are more focused on long-term value, while sellers are adjusting expectations in a market that remains undersupplied.

Sydney selling statistics

Sydney's property market in October 2025 presented a mixed picture. Sales volumes decreased compared to last year, yet the days on market have stayed steady. This points to a market adjusting to current economic conditions, with buyers adopting a more cautious stance.

Sydney sales volume and days on market

In October 2025, Sydney saw a drop in sales volume compared to the same time last year. The median days on market for properties was 31 days, consistent with previous months. This indicates that while sales are slower, properties are still moving at a steady pace.

^{Source: Cotality}

The steady days on market suggest that although buyers may be more selective, there is still a reasonable level of demand. Compared to Melbourne, where days on market have decreased, Sydney's market seems more stable but less dynamic. This could be due to a mix of economic conditions and buyer sentiment.

Sydney new and total listings

Sydney experienced a +4.3 per cent increase in new listings from October 2024 to October 2025, while total listings fell by -9.5 per cent over the same period. This indicates a tightening market where new properties are entering, but overall availability is decreasing.

^{Source: Cotality}

The rise in new listings suggests sellers are confident in the market's ability to absorb new stock. However, the drop in total listings points to a competitive environment where properties are being sold or withdrawn more quickly. This dynamic can create opportunities for buyers ready to act swiftly.

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}

The vendor discount in Sydney was -2.9 per cent over the last three months, aligning with the average of other capital cities. This indicates that sellers are maintaining their pricing expectations, suggesting a balanced market where buyers and sellers are negotiating effectively.

Sydney auction clearance rates

^{Source: Domain}

Sydney's auction clearance rates in November 2025 fluctuated slightly, with a rate of 62 per cent in the week of November 23. This is a slight decrease from earlier in the month, reflecting a market where buyer interest remains but is not as strong as in previous years. The consistency in clearance rates suggests that while the market is not booming, it remains stable, with committed buyers still active.

Sydney property investing

Sydney’s rental market is currently experiencing both stability and challenges. While rental growth shows signs of slowing, the market remains tight due to limited supply and strong demand. Let's dive into the statistics on rental rates, yields, and vacancy trends to get a clearer picture of Sydney's rental landscape.

Sydney rental market

Rental rates in Sydney have increased over the past year, indicating a market under pressure, though there are hints of easing. Gross rental yields are relatively low, showing high property values compared to rents. These trends set the stage for the detailed metrics below.

^{Source: Cotality}

Despite the rise in rental rates, Sydney's rental market faces challenges from limited new supply and strong demand from both local and international tenants. High property values contribute to low rental yields, highlighting ongoing affordability issues for renters. Economic factors, such as interest rates and population growth, also influence the current rental environment.

Sydney vacancy rates

Vacancy rates are key indicators of the balance between rental supply and demand, offering insights into tenant competition and rent negotiation power. Nationally, vacancy rates have stayed tight, with some capitals seeing slight easing. However, the overall sentiment is that rental markets remain undersupplied, maintaining pressure on tenants.

^{Source: SQM Research}

Sydney's vacancy rate was 1.3 per cent in October 2025, down from 1.5 per cent a year earlier, showing a tightening market despite some month-to-month fluctuations. Compared to other capitals, Sydney's vacancy rate is below the balanced range of 2–3 per cent, indicating ongoing competition for rental properties. This trend aligns with the national narrative of limited supply and strong demand, especially in major cities.

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. While some capitals are showing temporary easing in rent growth, underlying conditions remain undersupplied, particularly in cities such as Perth, Adelaide, and Hobart. Brisbane continues to attract strong demand from interstate migration, while Melbourne and Canberra appear to be stabilising following recent surges in new rental listings. Overall, we expect rental conditions to remain tight through the summer months, with only a modest increase in vacancies likely in early 2026.”

Sydney’s vacancy rate of 1.3 per cent reflects a very tight market, with vacancies dropping from 10,874 to 9,553 over the year. This indicates that Sydney has not seen the “meaningful supply increases” observed at the national level.

Despite some month-to-month easing in listings, Sydney’s vacancy rate remains well below what is typically considered a balanced rental market. With fewer available rentals than last year and strong population growth, the city is likely to continue facing competition for properties and limited relief for tenants through the summer.

Highest growth areas in Sydney

^{Source: Cotality}

Highlights for Sydney’s high growth areas

• Mount Druitt is leading the pack, holding the top spot in October 2025. With a median value of $956,367 and an annual growth of 9 per cent, this area is thriving. Infrastructure upgrades and revitalisation projects are making it a magnet for first-home buyers and investors. (Suburbs to watch: Rooty Hill)
• Marrickville - Sydenham - Petersham comes in at #2, boasting a median value of $1,982,437 and an annual growth of 8.5 per cent. Its closeness to the CBD and lively community make it a favourite among young professionals and families. Suburbs to watch: Stanmore, Marrickville)
• St Marys is holding strong at #3, with a median value of $1,084,623 and an annual growth of 7.8 per cent. The new Western Sydney Airport metro line and town-centre redevelopment are significant growth factors here. (Suburbs to watch: St Marys)
• Merrylands - Guildford and Bankstown are neck and neck, with annual growth rates of 7.6 per cent and 7.5 per cent, respectively. Their strategic locations and ongoing infrastructure improvements are drawing a diverse range of buyers. (Suburbs to watch: Greystanes, Merrylands, Guildford)
• Penrith, ranked #6, has a median value of $1,034,069 and an annual growth of 7.3 per cent. The area's balanced demographics and new housing developments continue to attract families and students. (Suburbs to watch: Cranebrook, South Penrith)