M:
Research
Spring/25 Sydney Residential
The Big Picture Another interest rate reduction is expected to boost buyer confidence and borrowing capacity, likely supporting further price growth and increased activity in Sydney’s residential property market. Sydney’s property market softened in Q2 2025, with fewer sales and longer selling times, reflecting cautious lending conditions and expectations of rate cuts. Listing activity also declined, pointing to a slower, more selective market environment.
Residential property prices rose 3.9% over the year to Q2 2025, with a steady quarterly gain and a median value now at $1.33 million. McGrath Research forecasts continued growth, driven by limited supply, easing rates, and stronger buyer confidence. Rental market remains tight, with low vacancy and steady rent growth. Yields are stable, and limited supply alongside strong migration is expected to keep upward pressure on rents through 2026.