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

Sydney’s housing market continues to show steady upward momentum. In May 2025, dwelling values increased by 0.5% over the month and 1.1% for the quarter, bringing the annual change to 1.2%. These figures reflect a modest but stable recovery phase following earlier dips. Sydney’s median dwelling value now stands at $1,203,395, the highest among the capital cities.

Sydney Property Price Growth

Over the past five years, Sydney has seen a 32.3% increase in dwelling values, and 58.9% over the past decade. Compared to its September 2024 peak, values are down just 0.3%, highlighting the city’s relative resilience amid national fluctuations. Regionally, several parts of Greater Sydney—such as St Marys and Fairfield—rank in the top 10 nationally for annual dwelling growth, with St Marys up 8.3% and Fairfield up 7.4%.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 2nd June 2025

Sydney Property Market Trends

Sydney is one of only two capital cities (alongside Canberra) where the upper quartile is growing faster than the lower quartile, a reversal from trends in most other capitals. This suggests premium suburbs are leading the recovery. However, rental growth is cooling: house rents are up just 1.4% annually, and unit rents rose 2.6%, placing Sydney among the softest rental markets nationwide. Gross rental yields sit at 3.1%, the lowest among all capital cities.

Change in dwelling values over key time periods

Sydney Property Market Forecast

Market fundamentals are pointing to potential further growth. With interest rates likely to be cut later this year and labour market pressures expected to ease, the broader economic outlook supports modest price appreciation. Renewed political certainty and affordability schemes for first-home buyers could provide an additional boost to buyer confidence. That said, affordability constraints and tight lending policies will likely keep a lid on overly rapid acceleration in values.

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 is in a phase of measured recovery, led by strength in high-end suburbs and supported by broader macroeconomic optimism. Price growth is modest but consistent, with rental markets softening after years of pressure. While challenges like affordability remain, Sydney appears well-positioned for steady gains through the remainder of 2025.

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