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

Sydney’s housing market continued to grow steadily through October 2025, marking a notable recovery from the slower pace seen in late 2024. Dwelling values in the city rose 0.7% for the month, 2.3% over the quarter, and 4.0% annually, bringing the median value to $1,256,156. This reflects an ongoing upturn that began after the first rate cut in February 2025, when the national market shifted from stagnation to renewed expansion.

Market Highlights

• Home values rose 0.7% in October, up 2.3% over the quarter and 4.0% annually, taking the median to $1,256,156.
• Sydney’s housing market is at its peak, with 38.3% total growth since pre-pandemic and 5.1% growth since February 2025.
• House prices rose faster than units — 5.1% vs 1.2% over the year.
• Top growth suburbs: Mount Druitt (9.0%), Marrickville–Sydenham–Petersham (8.5%), St Marys (7.8%).
• Low advertised listings continue to fuel demand; vacancy rates near 1.4%, yields around 3.0%.
• Buyer activity strongest in lower and mid-priced segments helped by the expanded 5% deposit guarantee.
• Growth expected to moderate due to affordability pressures, inflation risk, and a likely end to the rate-cut cycle.
• Construction remains sluggish; building costs up 31% over five years, keeping supply tight.
• Overall: steady but cooling momentum, Sydney stays a high-value, high-demand market entering 2026.

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 October 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’s property market is at its peak, with cumulative growth of 38.3% since the pre-pandemic cycle began and a 5.1% rise since February 2025. House prices climbed slightly faster than unit prices over the year—5.1% for houses versus 1.2% for units—and total returns reached 7.1%, supported by both value appreciation and rental income.

Within Greater Sydney, the most robust annual growth was concentrated in more affordable and middle-tier areas. The top performers included Mount Druitt (up 9.0%), Marrickville–Sydenham–Petersham (8.5%), and St Marys (7.8%), highlighting how outer and mid-ring suburbs are driving momentum rather than the high-end coastal belt.

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

Sydney’s housing demand remains high amid persistently low supply. Advertised listings are well below average for this time of year, intensifying competition and strengthening sellers’ positions. Rental conditions are tight, with vacancy rates around 1.4% and gross rental yields sitting near 3.0%—among the lowest nationally.

Sydney’s rental growth stabilizing around 3–4% annually, as rising property values continue to outpace rent increases. Buyers in the lower and middle price brackets are benefiting most from the expanded 5% deposit guarantee scheme introduced in October, while high-end segments are seeing more modest gains.

The table outlines CoreLogic’s Home Value Index as of 3rd November 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Sydney Property Market Forecast

Cotality analysts suggest that while Sydney’s housing market remains resilient, its growth could moderate in the coming months. Factors shaping the outlook include renewed inflation pressure, affordability constraints, and the possibility that the current rate-cut cycle may have ended. Economists now expect no further cuts in 2025, which may temper the boost to borrowing capacity that fueled much of this year’s recovery.

Construction remains a weak point. New dwelling commencements and completions are both well below the decade average, with building costs now 31% higher than five years ago. This imbalance between strong demand and limited new supply is expected to sustain price pressure but may also deepen affordability challenges for first-home buyers.

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 stands on solid ground, maintaining steady, sustainable growth through late 2025. Demand is strong, driven by lower interest rates earlier in the year, limited stock, and government support for buyers. However, headwinds—such as affordability constraints, high construction costs, and a possible end to monetary easing—may cool the pace heading into 2026.

Overall, Sydney’s property landscape remains one of measured optimism: values are at a record high, competition is intense, and while growth may slow, the fundamentals of demand continue to underpin its resilience.