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. Now, in 2024, things are moving at a more gradual pace.
Sydney property prices - March 2024
Property type | Month change (Mar 24) | Quarter change (Mar 24) | Annual change (Mar 24) | Current median price (Mar 24) |
---|---|---|---|---|
All Sydney dwellings | 0.3% | 0.9% | 9.6% | $1,139,375 |
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 caution until there is more clarity around when rates will settle. Fears around further interest rate hikes have now subsided, but the high rate environment seems to have taken some heat out of the market in 2024.
Compared to 12 months prior, new listings for March were up +20.4 per cent in Sydney while old listings were down -14.0 per cent, showing that sellers are finally coming back to the market but buyer demand has mostly been absorbing that new stock. Sales volumes got a major +17.3 per cent boost year on year in March, demonstrating that buyers are still out in force.
Currently, Sydney's median days on market (DOM) has settled around 35 for the quarter, slightly down from 36 in March 2023.
![OA Inline OE CTA Image](https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/small_hero_2016_11_istock_520536109_e1498586539308_wpt_811b43b32e_dd5ed6e1dd.webp)
Get a free property value estimate
Find out how much your property is worth in today’s market.
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 have eased back in 2024, though.
Sydney house prices - March 2024
Property type | Month change (Mar 24) | Quarter change (Mar 24) | Annual change (Mar 24) | Current median price (Mar 24) |
---|---|---|---|---|
Sydney houses | 0.3% | 0.9% | 10.7% | $1,414,229 |
The median house price in Sydney rose another +0.3 per cent in March 2024, creating a consistent trend that's put quarterly gains at +0.9 per cent. Annual price changes remain in very strong positive territory at +10.7 per cent.
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
Suburb | Median house price |
---|---|
St Helens Park, 2560 | $760,000 |
North St Marys, 2760 | $765,000 |
Hebersham, 2770 | $725,000 |
Fairfield, 2165 | $975,000 |
Jamisontown, 2566 | $866,000 |
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 have wound down somewhat in 2024 but units are currently outperforming houses.
Sydney unit prices - March 2024
Property type | Month change (Mar 24) | Quarter change (Mar 24) | Annual change (Mar 24) | Current median price (Mar 24) |
---|---|---|---|---|
Sydney units | 0.4% | 1.0% | 6.9% | $839,344 |
Sydney's median unit price went up another +0.4 per cent in March to just under $840,000. On a quarterly basis, that brings growth up to +1.0 per cent, while annual change is a solid +6.9 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 into the new year.
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
Suburb | Median unit price |
---|---|
Eastlakes, 2018 | $640,000 |
Hillsdale, 2036 | $665,000 |
Greenwich, 2065 | $734,000 |
Ashfield, 2131 | $735,000 |
Canterbury, 2193 | $650,000 |
Sydney property market forecast 2024-25
2023 was a year of two halves. Prices skyrocketed in the first six months of the year before easing off later on and drifting into 2024 with negligible growth. So what are the big banks saying about what to expect in the year ahead?
NAB's latest Sydney house price forecast now has Harbour City dwellings pushing up by +4.7 per cent in 2024 with +3.7 per cent to follow in 2025.
Westpac's Sydney real estate forecast now sees similarly strong growth for 2024 at +6.0 per cent with +4.0 per cent to come in 2025.
Big four banks' Sydney home price forecasts 2024-25
Bank | Sydney property prices 2024 | Sydney property prices 2025 |
---|---|---|
Westpac | 6.0% | 4.0% |
NAB | 4.7% | 3.7% |
ANZ | 4-5% | 7.0% |
CBA | 4.0% | N/A |
Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the rest of the year. Interest rates had extensive impacts on the market and, while there is now a period of stability, the high rate environment is still causing stress for buyers and homeowners alike.
Currently, the RBA sits at 4.35 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022. The banks mostly expect there will be no further hikes, with rate cuts to begin in the later stages of 2024 or early in 2025.
Big four banks' cash rate forecast 2024-25
Bank | Peak rate forecast | Month of peak rate | Rate cut forecast | Month of trough |
---|---|---|---|---|
Westpac | 4.35% | November 2023 | 2.85% | December 2025 |
NAB | 4.35% | November 2023 | 3.10% | November 2025 |
CBA | 4.35% | November 2023 | 2.85% | June 2025 |
ANZ | 4.35% | November 2023 | 3.60% | June 2025 |
Sydney house prices have outperformed units throughout the rebound. Units and more affordable houses could be well-placed to deliver stronger gains throughout 2024, though.
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
"Over the last few months the sentiment of both Sydney property buyers and seller is changing and buyers are pushing up the price of well-located A-grade homes and 'family-friendly' apartments which are still in short supply, but B-grade properties are taking longer to sell and informed buyers are avoiding C-grade properties.
This flight to quality means that moving forward the various sectors of the Sydney real estate market will be segmented, which is a more 'normal' property market.
The current strength and depth of the Sydney property market are also highlighted by strong auction clearance rates."
Theo Chambers - CEO at Shore Financial
"Demand is likely to remain strong, because it’s likely that external migration will remain high and that the rental market will remain very tight and continue pushing people into the sales market. At the same time, the supply of new listings is likely to remain constrained, because that’s been the trend in recent years and there’s nothing to suggest that will suddenly change.
When you put all that together, there’s a reasonable chance the Sydney property market will be in boom mode in 2024."
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 four years.
![Copy Block Image](https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/corelogic_sydney_property_price_graph_march_2024_c80237b00e.jpeg)
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.
![Copy Block Image](https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/australian_house_price_growth_over_30_years_f84dc593bd.jpg)
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 broadly stabilised after climbing up from its low point of 48 per cent in winter 2022. Days on market (DOM) in Sydney has also fallen as the market has strengthened.
Sydney auction clearance rate61%20th April, 2024
Sydney DOM35 days3 months to March 2024
Sydney new listings+10.7%3 months to November 2023
Sydney sales volumes+17.3%3 months to March 2024
Get a deeper insight into how Sydney sellers are faring in 2024 and what could be on the horizon for the the year ahead with some of our latest articles.
Sydney property investment
The Sydney property market is looking promising for investors as prices remain well below peak levels, rental vacancies hover around record lows, asking rents continue to increase, and further demand is expected as immigration returned en masse in 2023. High interest rates have driven some investors out of the market, though, as ballooning mortgage repayments have outweighed higher rents in some cases.
Sydney house rents+9.1%12 months to March 2024
Sydney unit rents+9.4%12 months to March 2024
Sydney rental yields3.1%March 2024
Sydney vacancy rate1.1%March 2024
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
Suburb | Region | Postcode | Property type | No. of properties | Median price ($) |
---|---|---|---|---|---|
Randwick | Eastern Suburbs | 2031 | Unit | 10,111 | $1,204,902 |
Narrabeen | Northern Beaches | 2101 | Unit | 2,664 | $1,332,929 |
Drummoyne | Inner West | 2047 | Unit | 3,912 | $1,249,934 |
Neutral Bay | North Sydney | 2089 | Unit | 4,958 | $1,398,399 |
Surry Hills | Inner South | 2010 | Unit | 7,587 | $985,685 |
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