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

Sydney’s property market continues its cautious recovery, with modest quarterly gains and annual growth barely above 1%. While prices remain the highest in the nation, a shortage of listings is helping support values in the face of affordability challenges. The rental market is beginning to ease, and Western Sydney leads suburb-level gains. Interest rate cuts expected later in 2025 may provide a further boost—but buyers remain constrained by high entry costs.

Market Highlights

• Modest Growth: Sydney’s property values rose by 1.1% in Q2 2025 and 0.6% in June, with annual growth at 1.3%—reflecting a slow but steady rebound.
• High Prices: With a median dwelling value of $1.21 million, Sydney remains the most expensive capital city in Australia.
• Supply Constraints: Listings remain scarce (5.8% lower year-on-year), helping support prices despite affordability pressures.
• Rental Market Softening: Rental growth has slowed (1.3% for houses, 3.1% for units), and gross yields sit at 3.1%, among the lower rates nationally.
• Top Growth Suburbs: Leading suburbs include St Marys (8.4%), Richmond-Windsor (6.7%), and Fairfield (6.5%), all in Western Sydney.
• Forecast: Further interest rate cuts expected in 2025 could lift sentiment and buying power, though affordability remains a major challenge.

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

In the three months to June 2025, Sydney’s dwelling values rose by 1.1%, aligning with the pace in Melbourne and Adelaide. On a monthly basis, the city posted a 0.6% increase in June, while annual growth stood at 1.3%, signaling a gentle rebound.

Across the past five years, Sydney’s property values have increased by 34.4%, and over the past decade by 56.7%—a testament to its long-term growth trajectory despite shorter-term fluctuations.

Among Sydney’s top-performing suburbs, St Marys led the pack with 8.4% annual growth, followed by Richmond-Windsor at 6.7%, and Fairfield at 6.5%—all located in the more affordable western belts of Greater Sydney.

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 July 2025

Sydney Property Market Trends

The current upturn is shaped by key supply and demand dynamics:

• Supply remains tight, with advertised stock levels 5.8% lower than a year ago and 16.7% below the five-year average nationwide, contributing to competitive market conditions.
• Rental growth in Sydney is also decelerating. House rents grew by just 1.3% annually, while unit rents rose by 3.1%—among the slowest rates across the capitals.
• Gross rental yields are relatively modest at 3.1%, reflecting high capital values and limited recent rent increases.

Though investor yields are low compared to other cities, reduced new housing supply and the potential for further rate cuts are maintaining overall positive momentum.

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

Sydney Property Market Forecast

Expectations for Sydney’s housing market lean cautiously optimistic:

• Interest rates are projected to fall further, potentially reaching the low 3% or even high 2% range by the end of 2025.
• Core inflation has cooled to 2.4%, increasing the likelihood of additional rate cuts beginning July 8th, supporting affordability and sentiment.
• Ongoing supply constraints (due to low approvals and construction) are likely to support prices, even as buyer demand remains tempered.

Nevertheless, affordability remains a major headwind. With median dwelling values well over $1.2 million, borrowing capacity continues to be a limitation for many, especially in the absence of meaningful income growth.

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.

Calculate your future property value with these forecasts in mind…

Calculate your future property value with these forecasts in mind…

Enter your property details below and we will give you an estimate of the value of your home.

Property Purchase Price $1M

Average Annual Appreciation 5%

Years Since Purchase 10

CALCULATE

Future Property Value

$0

How much is my property worth?

Get Your Free Property Value Report Compare Local Agents

Conclusion for Homeowners

Sydney’s housing market in mid-2025 is defined by modest growth, restrained supply, and improving monetary conditions. While it hasn’t experienced the same rapid value surges as cities like Perth or Brisbane, the fundamentals—scarce listings, low interest rates, and economic stability—create an environment that favours continued, albeit mild, upward pressure on prices.

The year ahead is likely to bring further gradual gains for Sydney, particularly if rate cuts materialise and sentiment strengthens. However, constraints around affordability and debt servicing will likely cap the speed and scale of growth.

Make Smarter Property Decisions Today