The Sydney property market continues to show resilience amid ongoing supply shortages and shifting buyer dynamics. As we move through the second half of 2025, a clear picture is emerging: low stock levels are colliding with sustained demand from both developers and owner-occupiers, particularly in the sought-after Eastern Suburbs. In this snapshot, we explore key market indicators, price trends, macroeconomic influences, and buyer/seller sentiment to provide a comprehensive overview of where the market stands and where it may be heading.
Market Overview & Key Indicators
Low stock meets rising demand
Listings have thinned dramatically with historically low stock levels, yet developer and owner‑occupier interest remains strong. Source
Low Tight auction market
While citywide clearance rates sit at ~64%, Eastern Suburbs outperform with 75% clearance in early July. Source:
Prices at a Glance
CoreLogic shows citywide median dwelling value at $1.21 million, up 1.3% year‑on‑year and 1.1% quarterly.
Eastern suburbs: median house prices May 2024–May 2025
Darlinghurst: +18.4% → $2.575m
Bronte: +18.4% → $6.202m
Paddington: +9.4% → $3.5m
Bondi: +8.6% → $4.125m
Source: realestate.com.au
Suburb records
Woollahra: –2.9%
Bellevue Hill: –10%
Vaucluse: –18%
Source: realestate.com.au
Apartments
Inner‑east units (e.g. Potts Point, Elizabeth Bay, Surry Hills) trade between $860K–$1.05 M, presenting a more accessible entry point per suburb.
Macro Influences
RBA dropped rates in mid‑Feb, causing immediate uptick in buyer confidence, auction activity, and mortgage inquiries.
Affordability & inequality: High-end suburbs (e.g. Point Piper, Bellevue Hill) maintain strength, while middle-income earners face pressure as property prices remain decoupled from wage growth. Source: Profitviewer and OpenAgent
Rental Market Snapshot
Vacancy remains tight at ~2.8% in June.
Rents in Eastern beachside suburbs may ease over the next 12 months as tenants shift toward more affordable areas. Source: PropertyUpdate
What It Means for You
Sellers: With clear 75% auction success, now’s a strong time to list, especially if you offer something fresh and well‑priced.
Buyers: Apartments in the eastern suburbs represent value, especially around inner-city pockets. Be prepared to act fast and competitively.
Investors: Rental tightness offers potential yield upside.
Outlook – Remainder of 2025 & Beyond
Price forecasts: Most forecasts predict modest growth through to FY2026, as supply shortages meet cautious buyer sentiment.
Growth drivers: Continued population growth, limited new build approvals, and positive interest rate conditions remain key tailwinds.
Risks: Global economic shocks or interest rate increases could cool momentum.
Final thoughts
Sydney’s real estate market remains competitive, shaped by tight supply, robust buyer interest, and evolving macroeconomic conditions. Sellers with well-presented, realistically priced homes, especially in premium areas are well-positioned to capitalise on strong auction performance. For buyers, opportunities still exist, particularly in the apartment market where relative affordability and lifestyle appeal converge. With modest growth forecast for the remainder of 2025 and supportive fundamentals such as low interest rates and strong population growth, the market outlook remains cautiously optimistic.