M:
The Big Picture
Spring/25
Sydney New Build Apartments
New Build Apartment Pipeline Update
Total Number of New Apartments
Sydney, built or due to be completed
The average annual pipeline for new build apartments is trending 1% lower than the 5-year average, according to McGrath Research Considering the time taken for development approval, marketing and construction for projects with 6+ apartments and 3+ storeys, Sydney could potentially count a total of 52,504 new apartments across projects to be built by the end of 2028, with an average 13,126 new apartments delivered each year Throughout 2025, there will likely be a total of 18,148 new apartments completed, this being the most delivered since 2020 Over the 2020-2024 timeframe, 52,504 new apartments were built, averaging 13,216 per year.
Apartment Configurations
When exploring the configuration of Sydney’s new build apartment active pipeline due for completion between 2025 and 2028, 54% of apartments are proposed to be a 2-bedroom apartment, 27% are allocated as a studio or have 1-bedroom and 19% have 3-bedrooms or more, as reported by McGrath Research
New Apartments Bedroom Mix
Sydney, due for completion 2025-2028
New Build Apartment Prices Update
New Build Apartment Price Change +0.6%
New build apartment prices across Sydney rose by 3 1% in the year ending Q2 2025, with 0 6% being in the past quarter The average new build apartment price was $16,400/per square metre (sqm) at this time, as per McGrath Research. This demonstrates ongoing underlying demand, and improving market confidence, is outpacing the delivery of new supply. Annual new apartment price growth has averaged 3 7% over the past five years
Change in New Build Apartment Average Price
Sydney, per square metre
Average Price per square metre
$16,400
Range in New Build Apartment Average Price Sydney, per square metre, Q2 2025
Sydney’s outer suburbs saw the most growth in new build apartment prices in the year ending Q2 2025, according to McGrath Research. Prices in the outer suburbs grew 6.1% to an indicative $8,700 per sqm in this time, to range between an average of $5,500 and $13,500/sqm. Middle suburbs recorded a rise in prices by 2 3% with $13,600/sqm ($7,500 to $30,000/sqm) and the inner suburbs rose 3 4% to $21,200/per sqm, ranging from $13,000 to $36,000/sqm.
Q2/25
Established Residential Prices Update
Change in Median Prices Sydney Median Price $1,333,500
Established residential property prices across Sydney rose by 3 9% in the year ending Q2 2025, with a 2 3% increase recorded in the most recent quarter This brought the median residential value to $1,333,500, reflecting a steady upward trajectory in housing demand and growing resilience in the market Annual residential price growth has averaged 6.8% over the past five years.
+6%
Forecast for Median Prices
Sydney Price Outlook
Looking ahead, McGrath Research forecasts Sydney established residential property prices to increase by 6% by the end of 2025, followed by a stronger 8% rise in 2026. These projections reflect ongoing demand from limited housing supply, lowered interest rates and improving consumer confidence
Residential Rents Update
Change in Residential Rental Vacancy Sydney Vacancy 1.1%
Sydney residential rental vacancy was recorded at 1 1% in Q2 2025, rising 20 bps in the quarter but fell 10 bps over the past year according to APM Generally, around 3% vacancy is considered a balanced market between rental supply and demand Below this equilibrium is considered to be an undersupplied pool of rental homes. Over the past five years, rental vacancy has averaged 1 5% per year
Change in Gross Rental Yield Sydney Yield +3 bps
Residential gross rental yields rose 3 bps in the Q2 2025 quarter to be 3 77% across Sydney, while being 1 bp more than a year ago. Gross rental yields are a good initial measure of comparing the return of a property investment before expenses are deducted. A range of 4.00% to 5.00% is considered good for many properties located in capital cities, while below this, may indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 3 50% over the past five years
from a year ago
Residential Rents
Change in Median Weekly Rents
Sydney Median Weekly Rent
Sydney residential rents rose 0.7% in Q2 2025, while increasing 2 7% over the past year, to stand at $760 per week Low vacancy and high migration are keeping rents elevated, albeit now rising at a slower pace the previous years On average, over the past five years, rents grew 8 3% per year.
Sydney Rental Outlook +3%
Forecast for Median Rents
As Sydney continues to experience solid population growth, tight rental supply and delayed new housing completions, McGrath Research forecast sustained upward pressure on rents of 3% at the end of 2025, with a further 3% rental growth likely in 2026.
Definitions
New Build Apartments
New apartments are defined as being within a 3+ storey building and with 6+ apartments as defined by McGrath Research.
Sydney
Sydney refers to the Greater Capital City Statistical Area or ‘Greater Sydney’ as defined by the Australian Bureau of Statistics
Inner Suburbs
The inner suburbs are considered to be within the 0-10km ring from the Sydney CBD as defined by McGrath Research.
Middle Suburbs
The middle suburbs are considered to be within the 10-25km ring from the Sydney CBD as defined by McGrath Research
Outer Suburbs
The outer suburbs are considered to be outside the 25km ring from the Sydney CBD as defined by McGrath Research.
Guiding you home
Michelle Ciesielski
Head of Research, McGrath Research
michelleciesielski@mcgrath com au +61 414 694 220
www mcgrath com au