Overview of Market Trends
August 2025 brought a measured lift in Sydney’s housing market, reinforcing the city’s reputation for resilience and long-term capital growth, even in the face of macroeconomic uncertainty.
Market Performance Overview
According to the Cotality Hedonic Value Index (HVI), Sydney’s dwelling values rose 0.4% over August, with the annual increase now sitting at 4.4%. While modest, this marks the third consecutive monthly gain, signalling renewed confidence in the market after a softer mid-year performance.
The upper quartile of the market continues to lead the charge, driven by prestige buyers and downsizers chasing lifestyle, security, and blue-chip positioning.
Median Values & Trends
Sydney’s median dwelling value now sits at approximately $1.07 million, up from $1.06m the previous month.
- Houses: Median value at approx. $1.34 million, growth of 0.3% month-on-month
- Units: Median value at approx. $830,000, up 0.6% month-on-month
Unit growth continues to outperform detached dwellings, suggesting increased interest in more affordable and centrally located options, particularly among first-home buyers, investors, and downsizers.
Rents & Yields
Sydney’s rental market remains tight, with vacancy rates still well below 2%.
- House rents: Median weekly rent of $720
- Unit rents: Median weekly rent of $600
- Gross yields: Houses at 2.6%, units at 3.9%
Strong rental demand is fuelled by ongoing population growth, immigration, and a backlog of would-be buyers delaying purchase decisions in the current rate environment.
Broader Market Signals
- Clearance Rates: Hovering in the high 60s to low 70s, pointing to robust demand in core premium suburbs.
- Sentiment & Lending: Improvements in consumer sentiment and early signs of stabilisation in interest rate expectations are bringing more buyers back into the fold.
- Construction Pipeline: Completions are lagging well behind approvals, exacerbating the already undersupplied market in prime areas.
Final Thoughts
For high-net-worth clients, these conditions reinforce the strategic value of Sydney real estate as both a wealth preservation and capital growth vehicle. We are seeing increased off-market activity, particularly in tightly held pockets of Woollahra, Mosman, Paddington, and the Northern Beaches, where stock is thin and buyer appetite remains strong.
Our recommendation? Act decisively but selectively. The best opportunities are transacting quietly, with limited competition and long-term upside.
At Rose & Jones, we continue to observe a clear trend: astute buyers are prioritising quality, scarcity, and lifestyle. These factors are outperforming broader economic uncertainty and have positioned Sydney’s top-tier suburbs as some of the most resilient in the country.
Source: CoreLogic Hedonic Home Value Index, August 2025
