Overview of Market Trends
Sydney’s prestige property market continues to show strength and composure amidst a complex economic backdrop. While national trends reveal pockets of moderation, Sydney’s blue-chip enclaves maintain robust fundamentals, supported by limited stock, high demand, and a recalibrated interest rate environment.
In a surprising move on July 8, the Reserve Bank of Australia decided to keep the cash rate steady at 3.85%, defying expectations of a cut, this was despite inflation easing. For buyers, the market remains competitive and affordability is a challenge. At Rose & Jones, we’ll help you stay ahead of the game.
Performance Overview
- Monthly Growth (July 2025): +0.7%
- Annual Growth: +6.6%
- Median Dwelling Value: $1.138 million
In July, Sydney home values climbed a further 0.7%, bringing the annual growth figure to 6.6% outpacing the combined capital city average of 6.3%. This marks the 20th consecutive month of value growth and continues to reaffirm Sydney’s primacy in the national market hierarchy. The city’s median dwelling value now stands at approximately $1.138 million, reinforcing its reputation as Australia’s most aspirational urban market.
House vs. Unit Dynamics
The upward movement in values is largely being driven by Sydney’s unit market, which rose 1.0% in July, its strongest monthly result since October 2023. While houses still command premium prices, affordability constraints and demand from downsizers and younger professionals have seen units outperform in both volume and pace of growth in key suburbs like Darlinghurst, Potts Point and Crows Nest.
Listing Activity & Buyer Behaviour
While national listing volumes increased by 7.6% in July, Sydney remains supply constrained. Total advertised stock is still 21.5% below the five-year average. This scarcity has intensified competition, particularly in prestige pockets such as Woollahra, Bellevue Hill, and Mosman, where buyers are acting decisively when quality homes come to market.
Days on Market (DOM) for Sydney sits at 26 days, vendor discounting has also narrowed to 2.7%, reflecting continued strength in seller sentiment.
Rental Markets & Investment Conditions
The rental market in Sydney remains historically tight. Gross rental yields are holding steady at 3.3%, aided by constrained rental stock and sustained population growth. Inner-ring suburbs like Elizabeth Bay and Paddington are witnessing strong rental demand from professionals and international returnees, contributing to ongoing investor interest.
Interstate Migration & Infrastructure Outlook
Sydney continues to attract high-income professionals and business leaders returning from global markets. This is bolstered by significant infrastructure projects, including the Sydney Metro West and the revitalisation of Tech Central both of which will create ripple effects across adjacent residential precincts.
Looking Ahead: Prestige & Patience
Looking forward, we anticipate steady value growth across Sydney’s prestige segments. Interest rates are now broadly expected to remain on hold through the remainder of 2025, providing a stable environment for long-term buyers. Limited listings, demographic tailwinds, and sustained demand from high net-worth individuals are expected to further entrench value in the city’s prime postcodes.
Final Thoughts
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.
For buyers with long-term horizons and an eye for location, June’s results reaffirm the strength of well-selected Sydney assets. Contact us today for expert help on your next move.
Source: CoreLogic Hedonic Home Value Index, July 2025
