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

Sydney’s housing market has maintained steady momentum heading into spring. Dwelling values recorded a 0.8% monthly rise in September 2025, bringing the city’s median home value to $1,241,054. On a quarterly basis, prices lifted 2.1%, while annual growth reached 3.0%. Despite being slower than Brisbane or Perth, Sydney’s results highlight the continued resilience of its housing market in the face of affordability pressures.

Market Highlights

• Sydney dwelling values rose 0.8% in September, up 3.0% annually, with a median of $1.24M.
• Houses outpaced units: annual house growth 4.0% vs. units 0.3%.
• Growth supported by low listings, tight labour market, and stronger borrowing capacity.
• Affordability is stretched: Sydney’s dwelling value-to-income ratio is 9.6, among the highest nationally.
• Rental yields remain slim, with gross yields at just 2.6% for houses and 4.1% for units.
• Strong buyer demand continues despite affordability challenges, keeping selling conditions competitive.

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

Sydney values are now sitting at their peak levels, with a cumulative rise of nearly 38% over the past five years. Since the first interest rate cut in February 2025, prices have gained about 4.2%. Houses saw stronger growth than units: quarterly gains of 2.4% for houses compared with 1.3% for apartments. Over the year, house values increased by 4.0%, while units edged up just 0.3%.

Regionally within Greater Sydney, the strongest annual growth was concentrated in more affordable or family-oriented areas. Suburbs such as St Marys, Marrickville–Sydenham–Petersham, and Mount Druitt all posted annual increases of around 7.5%. This shows a clear ripple effect, with growth spreading beyond the most expensive inner suburbs.

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

Tight supply remains the central driver. Advertised listings across Sydney are well below the five-year average, while auction clearance rates have strengthened to around 70% since August. Buyers continue to compete in a market with limited choice, boosting upward pressure on prices.

Rental conditions also remain stretched. Gross rental yields for houses in Sydney sit at just 2.6%, the lowest of all capitals, reflecting high dwelling values relative to rents. Vacancy rates are at record lows, further straining tenants but also limiting yield improvements for investors.

Affordability is a major pressure point. Sydney holds one of the highest dwelling value-to-income ratios nationally, at 9.6 times household income. This continues to restrict purchasing power, particularly for first home buyers, despite government support schemes like the expanded Home Deposit Guarantee.

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

The near-term outlook suggests continued but moderate growth. Lower interest rates, higher real incomes, and a tight labour market are expected to support demand through spring and summer. First home buyer demand is also tipped to increase as new price caps under the deposit guarantee program make entry into the market more achievable.

However, affordability constraints will likely cap Sydney’s growth compared with mid-sized capitals like Brisbane or Perth, where borrowing power stretches further. Sydney’s market is expected to remain competitive but restrained, with growth clustering in the middle and lower-value tiers rather than at the very top end.

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’s housing market is navigating a fine balance between strong demand drivers and affordability pressures. Prices are at record highs, clearance rates remain buoyant, and certain pockets of Greater Sydney are still delivering robust gains. Yet, the city’s extreme price-to-income ratio signals that growth will likely remain modest relative to other capitals. For buyers, the market will stay competitive, while investors will continue to face low yields in return for long-term capital growth potential.