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Autumn/26
Sydney
New Build Apartments
New build apartment pipeline
Active pipeline
In Sydney, the average annual pipeline for new build apartments is trending 15% 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 39,931 new apartments across projects to be built by the end of 2029, with an average 9,983 new apartments delivered each year By the end of 2026, an estimated total of 17,108 new apartments are due for completion, this being 32% higher than what was delivered in 2025 Over the 2021-2025 timeframe, 58,629 new apartments were built, averaging 11,726 per year.
Apartment configurations
When exploring the configuration of Sydney’s new build apartment active pipeline due for completion between 2026 and 2029, 54% of apartments are proposed to be a 2-bedroom apartment, 26% are allocated as a studio or have 1-bedroom and 20% have 3-bedrooms or more, as reported by McGrath Research
Total number of new apartments Sydney, built or due to be completed
New apartments bedroom mix Sydney, due for completion 2026-2029
New build apartment prices Update
New apartment prices +9.8%
New apartment prices across Sydney rose by 9 8% in the year ending Q4/25, with 1 1% being in the past quarter The average new apartment price was $17,900/per square metre (sqm) at this time, as reported by McGrath Research This demonstrates ongoing underlying demand is outpacing the delivery of new supply Annual new apartment price growth has averaged 5.8% over the past five years.
Tracking new apartment average prices
Sydney, per square metre
Average Price per square metre
$17,900
Sydney’s inner suburbs saw the most growth in new apartment prices in the year ending Q4/25, according to McGrath Research. Prices in the inner suburbs grew 15.0% to an indicative $24,600 per sqm in this time, to range between an average of $15,500 and $40,000/sqm. Middle suburbs recorded a rise in prices by 3 7% with $13,900/sqm ($7,500 to $28,000/sqm) and the outer suburbs rose 3 6% to $8,600/per sqm, ranging from $5,500 to $13,500/sqm.
Range of new apartment average prices
Sydney, per square metre, Q4/25
Q4/25
Sydney Median price $1,291,700
Tracking median prices
Sydney residential property prices have trended higher than a year ago Prices across Sydney rose by 7 8% in the year ending Q4/25, with a 2 1% increase recorded in the most recent quarter As a result, the median residential value reached $1,291,700. Residential values shift with changes in interest rates, supply and demand, economic conditions, population trends and local infrastructure which influences market appeal and buyer capacity Annual residential price growth has averaged 7 0% over the past five years
Sydney Price outlook +3%
Forecast for median prices
Looking ahead, Sydney residential prices are likely to rise over the coming year McGrath Research forecast Sydney residential property prices to increase by 3% at the end of 2026, followed by a further 2% rise in 2027 Residential price forecasts consider interest rates, the balance of supply and demand, economic conditions, population trends and local infrastructure which shapes affordability, demand and market direction
Residential rental vacancy Sydney Vacancy 2.2%
The number of residential rental homes in Sydney is currently undersupplied Sydney rental vacancy was recorded at 2 2% at the end of Q4/25, changing 0 bps in the quarter whilst rising 30 bps over the past year according to REIA. 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, which places upwards pressure on weekly rents For the past five years, Sydney residential rental vacancy has averaged 2 1%
Gross rental yield Sydney Yield -8 bps
Sydney gross rental yields have trended lower over the past year Residential yields lifted 3 bps in the Q4/25 quarter to be 3.47% across Sydney, whilst 8 bps lower compared to a year ago A yield pushing beyond 4% is more desirable for investment properties located in capital cities, while below this, tends to show higher property values relative to rental income Sydney gross rental yields have averaged 3 24% over the past five years
from a year ago
Median weekly rent $745
Residential rents across Sydney trended above the weekly rate recorded a year ago Sydney rents rose 2 1% in Q4/25, whilst increasing 2 1% over the past year, to stand at $745 per week Rent changes are driven by rental supply, tenant demand, migration trends, economic conditions and investor activity which together impact the vacancy rate. For the past five years, Sydney rents grew an average 6 7% per annum
Tracking median weekly rents
Sydney
Sydney Rental outlook +7%
Forecast for median rents
The Sydney residential market is continuing to experience upward pressure on weekly rents McGrath Research forecast Sydney rents to rise 7% at the end of 2026, with a further 5% rise likely in 2027 Rental forecasts take into consideration new and existing supply levels, tenant demand, population changes, economic conditions and local infrastructure all which can influence vacancy rates, rental pressure and future rental growth
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 National Head of Research, McGrath Research
www.mcgrath.com.au/research
