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Summer 25/26
Sydney
New Build Apartments
New build apartment pipeline Update
Active pipeline
The average annual pipeline for new build apartments is trending 7% 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 49,972 new apartments across projects to be built by the end of 2028, with an average 12,493 new apartments delivered each year By the end of 2025, an estimated total of 12,926 new apartments are due for completion, this being 12% lower than what was delivered in 2024 Over the 2020-2024 timeframe, 67,225 new apartments were built, averaging 13,445 per year.
Tracking the total number of new apartments Sydney, built or due to be completed
Apartment configurations 54%
New apartments bedroom mix Sydney, due for completion 2025-2028
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, 26% are allocated as a studio or have 1-bedroom and 20% have 3-bedrooms or more, as reported by McGrath Research
New build apartment prices Update
New apartment prices +4.1%
New apartment prices across Sydney rose by 10 6% in the year ending Q3 2025, with 4 1% being in the past quarter The average new apartment price was $17,700/per square metre (sqm) at this time, as per McGrath Research This demonstrates ongoing underlying demand is well outpacing the delivery of new supply Annual new apartment price growth has averaged 5.6% over the past five years.
Tracking new apartment average prices Sydney, per square metre
Average Price per square metre $17,700
Range in new apartment average prices Sydney, per square metre, Q3/25
Sydney’s inner suburbs saw the most growth in new apartment prices in the year ending Q3 2025, according to McGrath Research. Prices in the inner suburbs grew 17.4% to an indicative $24,300 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 4 5% with $13,800/sqm ($7,500 to $28,000/sqm) and the outer suburbs rose 2 4% to $8,500/per sqm, ranging from $5,500 to $13,500/sqm.
Q3/25
Tracking median prices Sydney Median price
$1,352,500
Residential property prices across Sydney rose by 5 3% in the year ending Q3 2025, with a 3 0% increase recorded in the most recent quarter This brought the median residential value to $1,352,500, reflecting a steady upward trajectory in housing demand and underlying resilience in the market. Annual residential price growth has averaged 7 1% over the past five years.
Sydney Price outlook +6%
Forecast for median prices
Looking ahead, McGrath Research forecasts Sydney residential property prices to increase by 6% by the end of 2025, followed by a similar 6% rise in 2026. These projections reflect a mix of ongoing demand from limited housing supply, a longer average number of days on market and a lowered number of sales transactions
Sydney Vacancy 2.2%
Tracking residential rental vacancy
Sydney residential rental vacancy was recorded at 2 2% in Q3 2025, rising 50 bps in the quarter and 50 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. Over the past five years, rental vacancy has averaged 2 0% per year
Sydney Yield +7 bps
Tracking gross rental yield
Residential gross rental yields tightened 4 bps in the Q3 2025 quarter to be 3 74% across Sydney, whilst being 7 bps 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 yield greater than 4% tends to be considered most desirable for properties located in capital cities, while below this, tends to indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 3 45% over the past five years
from a year ago
Sydney Median weekly rent $765
Tracking median weekly rents
Sydney residential rents rose 0.7% in Q3 2025, while increasing 2 7% over the past year, to stand at $765 per week Low vacancy and high migration have kept rents elevated, albeit now rising at a slower pace than previous years On average, over the past five years, rents grew 8 1% per year.
Sydney Rental outlook +4%
Forecast for median rents
While Sydney continues to experience tight rental supply and delayed delivery of new homes, McGrath Research forecast sustained upward pressure on rents of 5% at the end of 2025, with a further 4% 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 National Head of Research, McGrath Research
www.mcgrath.com.au/research
