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

Sydney’s housing market showed renewed momentum in early 2025, reversing part of the decline experienced in late 2024. Following a -2.2% drop from September 2024 to January 2025, values have now risen for two consecutive months, bringing the market to just -1.4% below its record high. This suggests an encouraging, albeit cautious, market recovery.

Sydney Property Price Growth

In March 2025, Sydney dwelling values increased by 0.3%, following a 0.4% quarterly gain and a 0.9% annual rise. The median dwelling value now sits at $1,190,616, with houses showing slightly stronger momentum than units. Notably, higher-end properties (upper quartile) led recent growth with a 0.6% rise over three months, double the rate seen in the lower quartile.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st April 2025

Sydney Property Market Trends

The city’s rebound aligns with broader improvements in sentiment, driven by the February interest rate cut and marginally better borrowing capacity. Although affordability remains tight, Sydney is responding more strongly than other capitals—especially in its prestige segments, consistent with past trends during rate cuts. However, gross rental yields in Sydney remain the lowest among capitals at 1.9%, which could temper investor interest.

Change in dwelling values over key time periods

Sydney Property Market Forecast

Looking ahead, the rate-cutting cycle is expected to be slow, limiting the potential for a sustained upswing. While conditions such as a tight labour market, cost-of-living relief, and easing inflation could support growth, affordability constraints and normalised population growth are expected to cap market acceleration. The supply shortage will remain a critical factor, potentially putting upward pressure on prices over the medium term.

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 is recovering steadily but cautiously. The city’s high prices and low rental yields reflect a premium, owner-occupier-led market rather than an investor-driven one. Though momentum is building, significant headwinds mean a material growth surge is unlikely without more substantial easing in affordability or financing conditions.

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