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

Sydney’s housing market continued to grow through November, although momentum eased. Values rose 0.5% for the month, contributing to a 1.8% increase over the quarter and 5.1% annual growth. The median dwelling value is now $1.27 million. Growth has softened compared with mid-2025, reflecting intensifying affordability pressures and a slight improvement in supply conditions relative to other capitals. Listings sit only 2.2% below the five-year average, a noticeably smaller deficit than the national capital-city benchmark.

Market Highlights

• Home values rose 0.5% in November, contributing to 1.8% quarterly growth and 5.1% annual growth.
• Price momentum has eased since August as affordability constraints cap buyer capacity.
• Listings sit only slightly below average, which reduces upward pressure compared with other capitals.
• Auction clearance rates have softened into the low-60% range, reflecting reduced buyer depth.
• Sydney holds the lowest gross rental yield in Australia at 3.0%, despite tight rental conditions and rising investor activity.
• Growth is expected to continue through 2026, though at a slower pace due to stretched affordability and limited borrowing capacity.

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 November 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 remains in positive territory but is no longer leading national gains. Monthly growth peaked at 0.9% in August and has progressively cooled. Over the past year, prices rose 5.1%, while houses performed slightly better than units at 6.1% annual growth. Units recorded a milder 2.2% rise over the year, reflecting weaker momentum in higher-density stock. Sydney’s total annual return reached 8.2%.

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

Affordability constraints are now a defining feature of Sydney’s housing conditions. Record levels of unaffordability are limiting how far prices can rise, with serviceability pressures pushing more buyers toward lower-priced segments. Auction clearance rates have retreated to the low-60% range, indicating softer buyer depth after a stronger winter and early-spring period.

Rental conditions remain tight. Sydney holds the lowest gross rental yield in the country at just 3.0%, despite ongoing population demand and limited vacancy. Rents continue to climb, especially in the unit sector, yet not fast enough to offset value growth. Investment activity is strong, supported by expectations of medium-term price appreciation.

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

Sydney Property Market Forecast

The outlook points to continued growth through 2026, though at a slower pace. With interest rates expected to remain on hold and inflation still elevated, borrowing capacity is unlikely to improve meaningfully. Government incentives may help first-home buyers at the margins, but affordability will remain a significant brake on the city’s upper-end price momentum. Low supply in new and established stock will continue to underpin values, but rising serviceability barriers are likely to limit upside.

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 market is still expanding but is clearly constrained. Modest monthly gains, stretched affordability and subdued clearance rates signal a more tempered phase after earlier acceleration. Prices are expected to keep rising, although gradually, as the balance between low supply and tightening borrower capacity defines the city’s trajectory into 2026.