Overview of Market Trends
Sydney’s prestige property market is showing early signs of renewed momentum. Following a phase of market recalibration, April marked the second straight month of dwelling value increases, recording a modest +0.3% rise. While the growth may appear subtle, it reflects a growing sense of confidence among high-end buyers and sellers. Historically, this is characteristic of Sydney’s luxury market, movement often begins quietly, with the most compelling opportunities emerging well before broader media or public awareness takes hold.
Premium Property Leads the Rebound
Premium properties are leading Sydney’s market rebound, with the upper quartile outperforming the broader market, rising 0.6% over the past three months. While the city’s median dwelling value sits just 1.4% below its September 2024 peak, momentum is strongest in the prestige segment. Sydney’s high-end market is regaining pace, particularly in tightly held, sought-after postcodes. Many standout transactions are occurring off-market, discreet, strategic deals that reflect renewed confidence at the top end.
Buyer Behaviour
The February rate cut marked a key psychological shift, signaling the likely end of the tightening cycle. While it hasn’t yet boosted borrowing power, it reduced opportunity costs for high-net-worth individuals with cash or equity. As a result, we’re seeing a resurgence of long-term, strategic buyers, including:
Expats returning to the market
Downsizers re-entering selectively
Intergenerational buyers acquiring assets
Trust and corporate structures being activated again
This renewed activity is being driven by patient, long-term capital focused on securing high-quality assets.
Stock Remains Tight
Stock remains tight and highly selective in Sydney, with new listings down 4.7% year-on-year in March and total supply sitting 7.9% below the five-year average. Much of what’s publicly available doesn’t meet the needs of discerning buyers, which is why off-market opportunities remain at the forefront, especially in the $4m–$15m range, where discretion and early access are key to securing the right property.
Yields and Rental Performance
The leasing market continues to underpin investment confidence in key areas, with rental returns remaining appealing for long-term strategies.
Gross yields for Sydney dwellings sit at 3.1%
Houses yield 2.7%, while units return 4.1%
Annual rental growth has eased to +2.5%, indicating post-COVID-19 stabilisation
For those pursuing asset-backed wealth strategies, from family offices to second residences, current yields and strong long-term capital growth potential offer compelling value.
Our View
Now is the time for strategic, not reactive, decision-making. We’re entering a selective accumulation phase, ideal for those with liquidity and foresight. While interest rates may not drop significantly, buyer sentiment has already shifted, creating a window of opportunity. Over the next 3–6 months, conditions are expected to remain favourable, with more accessible stock, rational competition, and negotiable terms, before the next wave of market activity begins.
Final Thoughts
Sydney remains one of the world’s most resilient and sought-after real estate markets, underpinned by limited supply, strong population growth, and enduring global appeal. At Rose & Jones, we act for individuals and families who view property as a strategic asset, not just a transaction. We’re here to guide you if you’re considering your next move or seeking discreet access to Sydney’s most desirable opportunities. At Rose & Jones, we are committed to helping clients make informed property decisions in 2025 and beyond, contact our expert team of buyer’s agents today.
Source: CoreLogic Hedonic Home Value Index, April 2025
