Sydney Housing Market Update [video] | May 2025

Sydney’s housing market continues to recover, albeit at a moderating pace. After a promising boost from the February rate cut, momentum has slightly softened, influenced by broader economic uncertainty.

Sydney property prices have demonstrated moderate but consistent gains:

• April 2025: +0.2% increase
• Quarterly Growth (February–April 2025): +1.0%, marking the strongest three-month gain since August 2024

Despite these positive signs, Sydney housing values remain 1.1% (approximately $13,700) below their September 2024 peak.

Sydney housing market trends

Source: Cotality Australia

Recent recovery has been notably stronger in Sydney’s premium property segments:

Source: Cotality Australia

This reverses a recent trend where lower-priced properties led market growth.

Sydney rents have seen moderate growth:

• April 2025 rental increase: +0.7% (up from +0.6% in previous months)
• Annual rental growth rate: 1.9%, the lowest annual increase in four years

Sydney’s housing affordability remains strained:

• Median Dwelling Value: Significantly higher than other capitals, placing substantial pressure on buyers
• Years to Save 20% Deposit (Median Household Income): Approximately 10.6 years
• Percentage of Median Income Required for Rent: A record-high 53%

Sydney house prices – the longer-term data

The short-term outlook for Sydney remains cautiously positive, underpinned by:

• Gradual interest rate reductions
• Government-backed stimulus targeting first-home buyers
• Continued demand pressures from housing undersupply

However, the pace of growth is expected to remain modest due to affordability constraints and ongoing economic uncertainty.

In summary, Sydney’s housing market presents opportunities tempered by caution, suggesting steady but moderated growth moving forward.