Sydney’s property market has shown clear signs of recovery over recent months, driven largely by improving sentiment and a gradual easing of interest rates. According to CoreLogic’s latest data for April 2025, the city’s housing market is experiencing cautious optimism.

Sydney Housing Market Update | April 2025

After experiencing a decline of 2.2% from October 2024 to January 2025, Sydney housing values have turned upwards, marking two consecutive months of growth:

  • February 2025: 0.1% increase
  • March 2025: 0.3% increase

However, despite recent improvements, Sydney’s median property price remains approximately 1.4% (or $17,300) below the peak achieved in September last year.

Sydney housing market trends

The recovery is unevenly distributed between houses and units:

Property Type Change Q1 2025
Houses +0.5%
Units -0.1%

Source: CoreLogic

Houses are leading the growth, indicating a stronger demand compared to the more modest market for units.

Sydney’s higher-priced properties are outperforming lower-priced segments for the first time in recent months:

Price Tier Growth Q1 2025
Upper Quartile +0.6%
Lower Quartile +0.3%

Source: CoreLogic

Historically, Sydney’s higher-end market responds positively to cuts in the cash rate, suggesting continued strength in this segment as interest rates ease.

Sydney house prices – the longer-term data

The overall outlook for Sydney remains cautiously positive, with modest growth expected rather than any significant surge in property prices. Key influencing factors include:

  • Gradual easing of monetary policy.
  • Continued demand outpacing constrained supply.
  • A cautious approach from lenders impacting borrowing capacity.

In summary, Sydney’s property market appears poised for steady, modest growth through 2025. While opportunities exist, especially for premium segments, significant barriers to accelerated growth remain firmly in place.

Michael Yardney
About Michael Yardney
Michael is a director of Metropole Property Strategists who create wealth for their clients through independent, unbiased property advice and advocacy. He's been voted Australia's leading property investment adviser and his opinions are regularly featured in the media.
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