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Sydney property market data, trends, forecasts

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 - April 2024

Property typeMonth change (Apr 24)Quarter change (Apr 24)Annual change (Apr 24)Current median price (Apr 24)
All Sydney dwellings0.4%1.1%8.7%$1,145,931

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 April were up +10.2 per cent in Sydney while total listings were down -2.3 per cent, showing that sellers are coming back to the market but buyer demand has been comfortably absorbing that new stock. Sales volumes got a major +15.5 per cent boost year on year in April, demonstrating that buyers are still out in force.

Currently, Sydney's median days on market (DOM) has settled around 32 for the quarter, slightly up from 31 in April 2023.

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    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 - April 2024

    Property typeMonth change (Apr 24)Quarter change (Apr 24)Annual change (Apr 24)Current median price (Apr 24)
    Sydney houses0.3%1.0%9.6%$1,421,413

    The median house price in Sydney rose another +0.3 per cent in April 2024, creating a consistent trend that's put quarterly gains at +1.0 per cent. Annual price changes remain in very strong positive territory at +9.6 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

    SuburbMedian 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 - April 2024

    Property typeMonth change (Apr 24)Quarter change (Apr 24)Annual change (Apr 24)Current median price (Apr 24)
    Sydney units0.6%1.4%6.2%$844,659

    Sydney's median unit price went up another +0.6 per cent in April to just under $845,000. On a quarterly basis, that brings growth up to +1.4 per cent, while annual change is a solid +6.2 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 current 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

    SuburbMedian 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 for the rest of 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

    BankSydney property prices 2024Sydney property prices 2025
    Westpac6.0%4.0%
    NAB4.7%3.7%
    ANZ4-5%7.0%
    CBA4.0%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

    BankPeak rate forecastMonth of peak rateRate cut forecastMonth of trough
    Westpac4.35%November 20233.10%December 2025
    NAB4.35%November 20233.10%November 2025
    CBA4.35%November 20233.10%December 2025
    ANZ4.35%November 20233.60%June 2025

    Sydney house prices outperformed units throughout the rebound but units and more affordable houses could be well-placed to deliver stronger gains throughout 2024.

    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

    "Sydney’s home values will continue to increase, although a little more slowly than they did in 2023. The surge in properties for sale in Sydney hasn’t yet slowed demand, with prices rising 0.3% in March and 9.6% over the past year.

    Both buyer and seller confidence has increased with the thought that potential rate cuts could boost borrowing capacity, giving buyers more money to spend.

    While Sydney property buyers are back in force, they are currently being cautious - their pockets are shallower and borrowing capacity significantly reduced. However, despite the overall caution, buyer demand is still strong which will continue to push Sydney’s property market through its revival."

    Nicola Powell - Chief of Research and Economics at Domain

    "It’s possible for Sydney’s median house price to edge closer to the $2 million mark in just a matter of three years.

    It’s a large increase, however, we do see big booms in Sydney. We aren’t anticipating that level of growth (22.9 per cent) over the next 12 months, however, over the next two, two-and-a-half, three years, that is absolutely possible.

    The shortage of new housing is likely to persist as new dwelling approvals have dropped to a nearly 12-year low after trending downward over the past two years."

    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.

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    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.

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    The Sydney property recovery has eased off in the new year. Source: CoreLogic, April 2024

    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 rate70%6th July, 2024

    Sydney DOM32 days3 months to April 2024

    Sydney new listings+10.2%3 months to April 2024

    Sydney sales volumes+15.5%3 months to April 2024

    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 population growth remains at historic levels. 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+9.2%12 months to April 2024

    Sydney unit rents+8.7%12 months to April 2024

    Sydney rental yields3.1%April 2024

    Sydney vacancy rate1.2%April 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

    SuburbRegionPostcodeProperty typeNo. of propertiesMedian price ($)
    RandwickEastern Suburbs2031Unit10,111$1,204,902
    NarrabeenNorthern Beaches2101Unit2,664$1,332,929
    DrummoyneInner West2047Unit3,912$1,249,934
    Neutral BayNorth Sydney2089Unit4,958$1,398,399
    Surry HillsInner South2010Unit7,587$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? 

    Sydney property FAQs

    • Will the Sydney property market crash?

      Considering there is significant uncertainty about inflation and interest rates, Sydney property market forecasts are wide-ranging. Get the full picture and more well-rounded understanding of what's to come in our article, will the Australian property market crash?

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    • Should I sell my Sydney house now or wait?

      Selling your property is a huge decision that deserves all your careful consideration weighing up the advantages and disadvantages of either scenario. 

      Even if the market feels uncertain, it’s important to remember that it’s all relative and the market doesn’t stop. There will always be properties being listed and buyers out there wanting to purchase a home. 

      For a clearer picture of what the market is looking like and whether it's a good time to be listing your Sydney property, check out our article: should I sell my house now or wait?

       

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    • Where are the top growth suburbs in Sydney?

      According to the latest CoreLogic data, more than a dozen Sydney suburbs experienced growth of more than +15 per cent in the six months to August 2022. The median house price in Austral surged by a massive +49.3 per cent, while units in Eastwood, Sans Souci and Guildford gained +30.6 per cent, +21.2 per cent and +20.4 per cent respectively. 

      Overall, Sydney units look to be outperforming houses in the latter stages of 2022. 

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