Sydney Property Market
Updated November 2025
The Sydney property market began 2025 with strong momentum, driven by a surge in listings through January and February. It's approaching the year end with the latest Cotality figures for October recording the fastest rise in monthly rises in home values since June 2023.
Auction clearance rates have remained consistently solid throughout the year, typically sitting between the high-60s and mid-70s. However, performance continues to vary depending on suburb, property type, and presentation.
In tightly held, high-demand areas, well-presented homes can draw intense competition, with many achieving sale prices well above their quoted ranges. Persistent underquoting by agents remains a source of buyer frustration.
Meanwhile, the old adage “buy the worst house in the best street” has lost some of its appeal as renovation costs and builder shortages make improvements more challenging. Buyers are increasingly willing to pay a premium for fully renovated properties that offer immediate appeal and minimal future costs. Having said this, knock-down rebuilds remain a strong trend in many suburbs.
Properties with drawbacks such as high-traffic positions, awkward layouts, or less-favoured locations are attracting more measured interest and often face limited bidding momentum come auction day.
It’s still early days, but the Federal Government’s new Home Guarantee Scheme, which commenced on 1 October, appears to be adding some upward pressure to prices, particularly in the entry-level segment. The October figures from Cotality back this up.
Sydney’s housing market remains underpinned by solid fundamentals — strong population growth, chronic undersupply, government stimulus and the tailwinds of a gradually easing monetary policy environment.
As a result, significant price softening appears unlikely in the short to medium term.
Sydney property market statistics
Growth figures
According to the CoreLogic RP Data Daily Home Value Index as of 31 October 2025, Sydney dwelling values have recorded the following growth:
Overall Dwellings:
Annual: +4.0%
Quarterly: +2.3%
October 2025: +0.7%
Houses:
Annual: +5.1%
Quarterly: +2.5%
October 2025: +0.6%
Units:
Annual: 1.2%
Quarterly: +1.8%
October2025: +0.8%
National Comparison (Annual): Sydney’s growth lags behind top performers like Darwin (+15.4%) and Brisbane (+10.8%), but it outperforms weaker markets such as Hobart (2.4%) and Canberra (-3.2%).
Sydney Median Prices
Houses: $1,575,646
Units: $886,379
The rate of growth of both houses and units is accellerating, which represents the fastest monthly gain since June 2023.
Auction clearance rates
In 2025, Sydney’s auction clearance rates have remained relatively stable, generally ranging from the mid-60s to early-70s. More recently, however, results have firmed, with clearance rates consistently holding in the mid-70s. This shift points to a strengthening market dynamic, tilting conditions further in favour of sellers.
Whether this momentum continues will hinge on key factors such as upcoming listing volumes, interest rate movements, and broader economic conditions.
Clearance rates provide a useful snapshot of market activity, but it’s important to recognise that the figure is an average across all Sydney suburbs. It does not capture the often significant variation between locations. Premium or highly desired suburbs typically achieve higher clearance rates, driven by strong demand and limited supply, while less sought-after areas may record weaker results.
Auction Clearance Rates 2023 - 2025
Interest rates
Between May 2022 and November 2023, the Reserve Bank of Australia (RBA) delivered a staggering thirteen consecutive rate hikes, lifting the cash rate from a historic low of 0.10% to 4.35%. With inflation showing signs of easing, the RBA has since shifted course, cutting rates by 0.25% in February, May, and again on August 12, 2025. These reductions have brought the cash rate down to 3.60%.
The RBA in it's direction change has reiterated that it remains vigilant as reflected in the latest Media Release - 12 August 2025:
"With underlying inflation continuing to decline back towards the midpoint of the 2–3 per cent range and labour market conditions easing slightly, as expected, the Board judged that a further easing of monetary policy was appropriate. This takes the decline in the cash rate since the beginning of the year to 75 basis points. The Board nevertheless remains cautious about the outlook, particularly given the heightened level of uncertainty about both aggregate demand and potential supply. It noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia.
The Board will be attentive to the data and the evolving assessment of risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. The Board is focused on its mandate to deliver price stability and full employment and will do what it considers necessary to achieve that outcome".
You can read the RBA Press Release for 12 August 2025 here.
The remaining RBA meetings for 2025 are scheduled as follows:
- November 3–4
- December 8–9
Reserve Bank Cash Rates 2019 - 2025
Rental vacancy rates
According to the most recent REINSW rental vacancy survey for June 2025, Sydney residential vacancy rates remain stable at 1.7%.
While this is welcome for tenants, it is far from a balanced market (which is typically around 3.0%–3.5%), with demand still significantly outpacing supply. A substantial increase in rental stock is needed to achieve balance.
Sydney Property Market Observations
Supply
- Early 2025 Surge: The year began with a higher-than-usual supply of houses and units, particularly in key areas.
- Spring Outlook: With the start of spring stock levels are still relatively low however, an increase in listings is expected consistent with seasonal trends. This should boost supply and provide buyers with more options.
- Property Quality: High-quality properties in desirable locations continue to attract strong interest, while compromised properties (e.g., on main roads or with poor floorplans) face more challenges.
Home Guarantee Scheme
The Home Guarantee Scheme, a Federal Government initiative designed to help first-home buyers enter the property market, will launch in its expanded format on 1 October 2025. The Scheme aims to overcome one of the biggest hurdles for new buyers—saving for a deposit.
In Sydney, the changes are expected to drive demand for properties priced up to $1.5 million, potentially fuelling further price growth in an already heated market segment. However, while it may assist buyers with deposits, the Scheme does not address the underlying challenge of limited housing supply.
More information on the Scheme can be found here.
Confidence
Buyer confidence remains robust, bolstered by the three recent RBA rate cuts, including the latest in August 2025. This positive sentiment, combined with the anticipated increase in spring listings, is expected to drive a strong sales season.
Underquoting
Underquoting remains a persistent feature of the Sydney property market and continues to frustrate buyers. In response, NSW Fair Trading introduced compulsory training on the issue as part of the 2024/25 Continuing Professional Development (CPD) program for agents. The real test, however, will be whether this initiative is supported by meaningful enforcement. To date, penalties have been limited and inconsistently applied.
Immigration
High immigration levels are expected to persist into the foreseeable future placing further pressure on an already undersupplied property market and driving demand for both housing and rental accommodation. Without a meaningful increase in new housing supply, strong competition is likely to persist, sustaining upward pressure on prices.
Rezoning
To ease supply pressures, the NSW Government has announced widespread rezoning across Sydney, particularly around major transport hubs, to facilitate the delivery of a substantial number of new dwellings, predominantly apartments. The objective is to alleviate the region’s housing shortage by shifting large tracts of land from low-density to medium- and high-density use.
Unsurprisingly, the proposals have generated concern and uncertainty within affected communities, with many awaiting clarity as the finer details of the rezoning process are finalised.
Where to from here?
In recent years, the Sydney property market has consistently defied predictions, shaped by a complex mix of global and domestic forces. COVID-19 lockdowns, inflationary pressures, and rapid interest rate rises were all expected to cool demand, yet the market has remained remarkably resilient. More recently, international political uncertainties, including the ongoing conflicts in Ukraine and the Middle East, as well as shifts in US leadership and policy, have added further layers of complexity, making reliable forecasting even more challenging.
Yet despite these uncertainties, the core fundamentals of the Sydney market remain intact—most notably, the persistent imbalance between supply and demand. Combined with recent interest rate reductions and continued high levels of immigration, these factors are expected to provide underlying support for the market through 2025 and beyond.
For buyers, however, strategy is more important than ever. Avoiding overpayment requires rigorous due diligence, a clear understanding of fair market value, and disciplined negotiation. It is also critical to stay across the NSW Government’s planning reforms and rezoning initiatives, as these changes may reshape neighbourhood density, drive new development, and influence property values over the medium to long term. Factoring these considerations into purchasing decisions will be key to securing both value and future growth.
This Week's Sydney Auction Results
Each week, we take a look at Sydney’s latest auction clearance rates to give you a snapshot of market activity and buyer demand. These figures are a key indicator of confidence in the property market—helping both buyers and sellers understand how properties are performing right now.
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