Sydney residential sale transactions tallied to 21,156 in the second quarter of 2025, a downward movement of 7% from the previous quarter In the past year, the total number was 11% lower, reaching 102,322 sales This was influenced by the tight lending environment with a focus on serviceability and the market anticipating further interest rates reductions As a benchmark, over the past five years, the quarter tally averaged 27,671 sales and the annual average was 112,263 sales
Total Number of Sales
Sydney
Auctions
In the last week of June 2025, 771 residential auctions were held across Sydney. According to Cotality, 67.2% of the homes were sold under the hammer Clearance rates above 70% suggest strong demand and a seller’s market, while a rate below 60% indicates weaker demand and a buyer’s market This result was higher than one quarter ago at 59 2%, when 1,110 auctions were held By comparison, the same quarter last year saw 63 0% sold, from 766 auctions
Sydney 771
Auction Clearance Rate
67.2%
Residential Sales Update
Duration
Sydney homes took an average 69 days on market - from the time they were listed to the day they went under contract - in Q2 2025 This duration was 68 days the quarter before and 58 days one year ago A lower number of days on market mean homes are selling fast with more desirable properties, while a higher number of days suggests a slower market with above market values Looking back, the fiveyear average has taken 61 days to sell a home.
Average Days on the Market
New Listings
Newly advertised property listings in Sydney were 14 1% lower in the month of June 2025 than the equivalent period last year, according to Cotality This trended below the Australian average of -11.7% and below the -12.9% across Australian capital cities
Listings
Sydney’s total number of listings in the month of June 2025 were 0.4% below the equivalent period last year, according to Cotality By comparison, the Australian average for total listings was -5.8% and across Australian capital cities was -4 4%
Change from a year ago
Median Price $1,333,500
Residential property prices across Sydney rose by 3 9% in the year ending Q2 2025, with a 2 3% increase recorded in the most recent quarter This brought the median residential value to $1,333,500, reflecting a steady upward trajectory in housing demand and growing resilience in the market. Annual residential price growth has averaged 6 8% over the past five years.
Change in Median Prices
Sydney
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 stronger 8% rise in 2026. These projections reflect ongoing demand from limited housing supply, lowered interest rates and improving consumer confidence
Residential Rents Update
Change in Residential Rental Vacancy Sydney Vacancy 1.1%
Sydney residential rental vacancy was recorded at 1 1% in Q2 2025, rising 20 bps in the quarter but fell 10 bps over the past year according to APM 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 1 5% per year
Change in Gross Rental Yield Sydney Yield +3 bps
Residential gross rental yields rose 3 bps in the Q2 2025 quarter to be 3 77% across Sydney, while being 1 bp 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 range of 4.00% to 5.00% is considered good for many properties located in capital cities, while below this, may indicate high property prices relative to rent, or low rental demand Gross rental yields have averaged 3 50% over the past five years
from a year ago
Residential Rents
Change in Median Weekly Rents
Sydney Median Weekly Rent
Sydney residential rents rose 0.7% in Q2 2025, while increasing 2 7% over the past year, to stand at $760 per week Low vacancy and high migration are keeping rents elevated, albeit now rising at a slower pace the previous years On average, over the past five years, rents grew 8 3% per year.
Sydney Rental Outlook +3%
Forecast for Median Rents
As Sydney continues to experience solid population growth, tight rental supply and delayed new housing completions, McGrath Research forecast sustained upward pressure on rents of 3% at the end of 2025, with a further 3% rental growth likely in 2026.
Sydney
Sydney refers to the Greater Capital City Statistical Area or ‘Greater Sydney’ as defined by the Australian Bureau of Statistics.
Guiding you home
Michelle Ciesielski
Head of Residential Research, McGrath Research michelleciesielski@mcgrath com au +61 414 694 220
