After closing 2024 on a subdued note, Australia’s largest property market has started 2025 uncertain. Sydney has experienced tremendous growth over the last 10 years, but following a large increase in supply in the backend of 2024, this has tapered off, much to the relief of prospective buyers.
Sydney’s property forecast for 2025 can give buyers insights into where the market is expected to go, which suburbs are likely to appreciate the most, and the sentiment amongst other buyers and vendors. With the help of a buyer’s agent, buyers can make an informed decision to secure the best possible value with their property purchase.
We’ll summarise Sydney’s property market in 2024, explore Sydney property trends for the year ahead, and share how this information can help you successfully navigate any changes that might arise.
Sydney Property Predictions For 2025
Various factors in place will shape Sydney’s property market in 2025, including infrastructure, gentrification, and population growth. Infrastructure development will continue to be a major driver of Sydney property growth rate, with suburbs benefiting from improved transport links that will make them more desirable for commuters. Gentrification will also play a role, as suburbs are refreshed and transformed, attracting new residents and businesses, and offering strong capital growth potential. Additionally, ongoing population growth will increase housing demand in both rental and owner-occupied properties, with immigrants, young professionals, and families settling in Sydney.
2025 Market Dynamics Predictions
After slowing in the back half of 2024, home prices are projected to rise in 2025, with forecasts ranging from 1% to 6%, however, the exact figure varies amongst major banks and analysts. Sydney property growth is expected to gain momentum as the anticipation of interest rate cuts in 2025 is expected to boost buyer confidence and market activity, especially in the latter half of the year, and depending on how soon these cuts occur will influence the strength of growth. Steady interest rates have challenged the ceiling of growth, and without a catalyst, we’re unlikely to see a surge. Until rate cuts occur, affordability will likely remain a concern for buyers.
2025 Investment Predictions
For those who are looking to invest in 2025, several options remain high in demand. Well-positioned family homes on the Lower North Shore or in Sydney’s Northern Beaches in particular offer consistent long-term capital growth, even if yields aren’t the strongest. Townhouses in Sydney’s Inner West remain in demand with young professionals and families who are looking for urban living, with Marrickville, Petersham and Dulwich Hill being highly desirable. Additionally, boutique apartments in lifestyle hubs such as Bondi, Bronte and Coogee are excellent investments, particularly if they have ocean views or are near the beach.
2025 Market State
As the market stands currently, the property landscape has been notably influenced by the first interest rate cut since 2020, implemented by the Reserve Bank of Australia (RBA). The direction of rates in this cycle is unclear, but so far these reductions have decreased mortgage rates, enhancing borrowing capacity and boosting buyer confidence, particularly in major markets like Sydney. This surge in demand has contributed to rising property prices, making affordability a persistent challenge for first-time homebuyers. Additionally, individuals renting their primary residence while investing in rental properties has gained traction, further intensifying competition in the housing market. When interest rates drop, the housing market typically experiences increased sales and rising property prices, which can be particularly challenging for some demographics.
Get in touch for help with navigating the changing 2025 property market.
2024 In Summary
In 2024, the markets exhibited resilience amidst economic fluctuations, but in the second half of 2024, growth slowed towards the end of the year. In our July report, we observed a 0.6% increase in property values over the month prior, contributing to an annual growth rate of 4.5%. In August, dwellings continued to increase, with Sydney’s property growth rate increasing by 0.8% in the previous month, contributing to an annual growth rate of 5.2%.
In September, Sydney property growth in the previous month fell to 0.3%, with an annual growth rate of 5.0%. As Q4 started, these numbers fell even further, with the previous month recording an increase of just 0.2%, bringing the annual growth rate to 4.5%. In November, the previous month saw properties drop by 0.1%, the first time decrease since early 2023. The year ended at a low, with our December report showing a decline in dwelling values by 0.2%, bringing the quarterly drop to 0.5%.
Using The Latest Sydney Property Trends To Guide Your Purchase
Leveraging the the latest insights and Sydney’s property forecast for 2025 can support your property-buying journey, and aid in negotiations.
Understanding Sydney property growth, past sales data, market trends, and the overall sentiment of the Sydney property market in 2025 is crucial in navigating your search. While much of this information is readily available online, being able to find the right information and apply it can be challenging. Analysing factors such as the Sydney property growth rate and how different suburbs are performing requires expertise, which is where buyers agents come in. The best buyers agents in Sydney are market experts, with knowledge on both a macro and micro scale, and can synergise readily available market data with observations drawn from the real world. An example of this is when a vendor lists a property that is above fair market value, and a buyers agent, with in-depth knowledge, is not only able to counter but to provide valid reasons for the offers they extend.
Sydney Property Market Insights
Discover the latest Sydney property market insights to fuel your search.
January Sydney Property Insights
In 2025, Randwick and Bondi have shown strong activity with minimal vendor discounts, whereas Coogee offers buyers the most negotiation opportunities. In Surry Hills and Randwick, investors will find ample rental demand, whereas in Queens Park and Bronte, the markets are tighter and present fewer opportunities.
February Sydney Property Insights
In February, Sydney’s property market remained active, with areas like Randwick and Bondi continuing to see strong demand and minimal vendor discounts. Coogee, however, presents more opportunities for buyers to negotiate. Investors will find healthy rental demand in both Surry Hills and Randwick, while Queens Park and Bronte have tighter markets with fewer options available.
Read the full February Sydney property insights report here.
About Rose & Jones Buyers Agents
Since 1998, Rose & Jones has been assisting clients in finding and purchasing properties across Sydney, South East Queensland, and the Northern Rivers region of New South Wales. Renowned in the residential, commercial, and industrial property sectors, our property experts adhere to the highest standards, ensuring you never have to compromise yours. With access to an extensive network of off-market properties, our team can help you find the perfect property. We also offer property management services and investment advice, making Rose & Jones your premier choice for property in New South Wales and Queensland.
