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Summer 25/26
Sydney Prestige
Residential
Prestige residential sales Update
Prestige sales
Sydney prestige residential sale transactions above $5 million tallied to 211 in Q3 2025, being 44% lower than the previous quarter This was shaped by a lower number of properties listed for sale across the market whilst global uncertainty continues to have an impact on decisionmaking Over the past year, the total number of prestige sales was 28% lower, reaching 1,374 sales. As a benchmark, over the past five years, the annual average was 1,381 sales
Tracking the total number of prestige sales ($5m+) each quarter
Sydney prestige
Super-prestige sales
The share of super-prestige sales (above $10 million) was recorded at 28%, after analysing the total number of prestige sales (above $5 million) across Sydney in the year ending Q3 2025. This was higher than one year ago when the proportion was 19%, and remains above the 21% share recorded five years ago Over the past year, Sydney’s super-prestige sales volume has increased by 8%, and grown by 239% over the past five years
Share of super-prestige sales ($10m+), by number
Sydney prestige
Duration +13 days
Prestige homes across Sydney averaged 82 days on market in the year ending Q3 2025, from the time they were listed to the day they went under contract This duration was 81 days a quarter ago (+1 day) and 69 days one year ago (+13 days) A lower number of days on market tends to mean homes are selling faster with more desirable properties, while a higher number of days suggests a slower market with above market values. Looking back over the five-year average, it has taken 74 days to sell a home
Tracking average days on the market
Newly advertised property listings in Sydney were 11 0% lower in the month of September 2025 than the equivalent period last year, according to Cotality This change trended below the Australian average of -10.3% but above the -11.2% across Australian capital cities
Sydney’s total number of listings in the month of September 2025 were 9.2% below the equivalent period last year, according to Cotality By comparison, the Australian average change for total listings was -13.3% and across Australian capital cities was -13 6%
Prestige residential prices
Tracking prestige prices
Sydney prestige Prestige prices
Sydney prestige property prices fell by 0 1% in the year ending Q3 2025, with a gain of 1 2% recorded in the last quarter Looking back at price growth since Q3 2020, prestige houses (27 7%) outpaced prestige apartments (19.5%) over the five years. In Q3 2025, prestige house prices were 1 9% higher and were 1 0% higher on the previous year In the same quarter, prestige apartment prices rose by 0.2% after declining 1 8% in the past year Annual residential price growth has averaged 4 5% over the past five years
price outlook
Looking ahead, McGrath Research forecasts Sydney prestige residential prices to increase by 1% by the end of 2025, followed by a further 2% rise in 2026. Factors taken into consideration include the projection of a stronger economy and business investment, a solid performing stock market, anticipated future reductions in the interest rate are likely to be deferred, as sales volume remain lowered
Forecast for prestige prices
Sydney prestige
Prestige residential rents
Prestige yield +16 bps
Residential gross rental yields rose 9 bps in the Q3 2025 quarter to be 2 68% across the Sydney prestige market, whilst being 16 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 3% tends to be considered most desirable for prestige 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 2 36% over the past five years
Tracking gross rental yield
Sydney
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
from a year ago
Prestige residential rents
Sydney prestige property rents rose by 5.7% in the year ending Q3 2025, with a rise of 3 0% recorded in the last quarter Looking back at rental growth over the five years since Q3 2020, prestige apartments (58 5%) outpaced prestige houses (34 6%) Prestige apartment rents in Q3 2025 were 1.8% above a quarter ago, and were 9.0% higher over the year In the same quarter, prestige house rents rose by 4.0% after rising 2.9% in the past year. On average, over the past five years, prestige rents grew 8 0% per year
Only a modest number of new homes have been built in Sydney, reducing the share of prestige rental homes available as the city continues to attract the ultra wealthy population As a result, McGrath Research forecast there will remain upward pressure on rents of 5% at the end of 2025, with a further 4% rental growth likely in 2026
Forecast
Definitions
Prestige property
The most desirable and most expensive property in a given location, generally defined as the top 5% of each market, by value.
Prestige sales
Sydney prestige sale transactions hold a threshold of A$5 million
Super-prestige sales
Sydney super-prestige sale transactions hold a threshold of A$10 million.
Wealthy population
A high-net-worth individual (HNWI) with a net worth of at least US$10 million.
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Michelle Ciesielski
National Head of Research, McGrath Research
www.mcgrath.com.au/research
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