Sydney Property Market – Prices, Trends, Forecast [September 2025]

Sydney’s home values continued to firm in August, rising 0.8% for the month. Values are now at peak again, with a median dwelling value around $1.224m. Momentum since the February rate cut is positive but measured, as affordability and tight credit keep a lid on the pace of gains.

Market Highlights

• Values up 0.8% in August, back at peak; median around $1.224m.
• Past 3 months +1.7%; annual growth remains modest (low single digits).
• Since Feb rate cut: +3.2%; five-year change: +36.7%.
• Rental pulse soft: house rents ~2.6% y/y; unit rents ~3.1% y/y.
• Gross dwelling yields ~3.0% (lean for investors, owner-occupier led).
• Standout pockets (12-month growth): Bankstown (~7.4%), Strathfield–Burwood–Ashfield (~7.1%), Richmond–Windsor (~6.9%).
• Outlook: gentle gains likely through spring as demand outpaces tight stock; affordability and lending settings should keep the tempo measured.

Housing Metrics Overview

See how Sydney’s property values have performed across houses and units over various timeframes, along with returns, yields, and median prices.

Watch CoreLogic’s September 2025 Housing Market Update for expert commentary on national and capital city housing trends, price movements, and key market drivers across Sydney.

Sydney Property Price Growth

Over the latest periods, Sydney shows steady—not runaway—appreciation: up 0.8% month-on-month and about 1.7% over three months. Annual growth is in the low single digits (roughly ~2%), while values have climbed ~3.2% since the February rate cut and ~36% across five years. Taken together, Sydney is growing again but below the hotter mid-sized capitals.

View the latest property value movements across Australia’s capital cities. Use the filters to explore monthly, quarterly, and annual changes by dwelling type and region. Data sourced from CoreLogic.

Sydney Property Market Trends

Sydney’s housing market is being shaped by several key trends:

• Listings remain tight and the usual spring uplift is starting from a low base, which supports prices when demand pulses. Auction competition is improving alongside stronger buyer confidence.
• Sydney’s rental upswing has been comparatively soft versus other capitals, and gross dwelling yields sit near 3.0%, underscoring a market still led by owner-occupiers rather than high-yield investors.
• Within Greater Sydney, the best 12-month performers include Bankstown (~7.4%), Strathfield–Burwood–Ashfield (~7.1%) and Richmond–Windsor (~6.9%), indicating outperformance across select middle-ring and outer-metro pockets.

The table outlines CoreLogic’s Home Value Index as of 1st September 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Sydney Property Market Forecast

Into spring, the balance of evidence points to modest further gains as buyer demand outpaces available stock. However, affordability constraints and prudent lending settings are likely to cap growth below past cyclical peaks. Expect a continuation of gentle, broad-based increases rather than a sharp surge, with rental growth slowly re-accelerating from a low base.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

Conclusion

Sydney has re-established an up-trend: prices are at new highs, growth is steady, and competition is improving as spring listings return. The near-term outlook is one of incremental appreciation rather than boom-time acceleration, with investor yields still lean and performance varying by suburb cluster.