M:
Research
Spring/25 Sydney New Build Apartments
The Big Picture With the downward movement in interest rates, buyer confidence and borrowing capacity are poised to strengthen which is likely support ongoing price growth and activity in Sydney’s apartment market. The future active pipeline for new build apartments is trending 1% lower than the 5-year average. This has been heavily impacted by the pandemic pause and the escalation in construction costs that are forecast to subside, yet remain elevated.
New apartment prices rose 3.1% over the year to Q2 2025, with a 0.6% quarterly gain and an average price of $16,400/sqm. McGrath Research forecasts continued price growth, driven by limited stock, easing rates, and stronger buyer sentiment. Rental market remains tight, with low vacancy and steady rent growth. Yields are stable, and low supply alongside strong migration is expected to keep upward pressure on rents through 2026.