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

Sydney continued its recovery in July 2025 with dwelling values rising 0.6% for the month, aligning with the national average. This brought quarterly growth to 1.8%, and the annual growth rate to 4.0%. The city has now recouped losses from earlier downturns and is officially back above its previous price peak. Sydney’s median dwelling value stands at $1,228,435, the highest of all capital cities.

The performance reflects a resilient market bolstered by low inventory levels and steady buyer demand despite affordability pressures and high interest rates.

Market Highlights

• Dwelling values rose 0.6% in July, with 1.8% quarterly growth and 1.6% annual increase.
• Median value is $1,228,435, the highest of all capitals.
• Rental growth remained modest: 1.8% for houses, 2.6% for units; gross yields at just 3.0%, the lowest nationally.
• Top growth suburbs include St Marys (7.4%), Fairfield (7.0%), and Liverpool (6.8%).
• Outlook is steady, with limited supply and rate cut expectations likely to support moderate growth through 2025.

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 monthly 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’s property market continued to display strong growth momentum. Over the past 12 months, house prices rose by 8.5%, while unit prices saw a more moderate but positive growth of 4.4%. The standout growth came from the Inner West and Northern Beaches, where premium homes remain in high demand. Notably, houses in the Upper North Shore grew 11.2% year-on-year, demonstrating resilience and buyer confidence in established lifestyle regions.

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.

CoreLogic Home Value Index, Released on 1st August 2025

Sydney Property Market Trends

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

• Premium segment strength: The upper end of the market remains buoyant, particularly in suburbs like Mosman, Randwick, and Wahroonga, where buyer demand outpaces supply.
• Tight listings: Stock remains constrained, which is contributing to upward pressure on prices, especially for detached homes.
• Investor return: Investor activity has picked up across Sydney’s middle-ring suburbs, driven by stable rental yields and improving sentiment.
• Affordability push: First-home buyers are gravitating toward western and southwestern suburbs where units remain more affordable.

Moreover, interstate migration and returning expats continue to support demand across the city.

Dwelling value growth over the past 5 and 10 years, including combined capital and regional market performance.

Sydney Property Market Forecast

Sydney’s market is expected to maintain its trajectory through the end of 2025, though the pace of growth may moderate:

• Detached houses are forecast to see annualised growth of 6%–8%, driven by ongoing demand and limited new supply.
• Units are likely to grow at a slower rate, approximately 2%–4%, with outer-ring developments facing more subdued price pressure.
• Some cooling in monthly gains is anticipated in late 2025 due to possible interest rate adjustments, though no major downturn is forecast.

This outlook is underpinned by robust population growth, sustained rental demand, and a still-tight labour market.

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.

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Conclusion for Homeowners

Sydney’s housing market continues its recovery with moderate and consistent value growth supported by low supply and resilient demand. While yields remain low and affordability is stretched, strong subregional performances and stable price increases paint an encouraging picture. Provided interest rates ease as anticipated, Sydney is likely to experience modest but steady growth in the months ahead.

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