Overview of Market Trends
Sydney’s property market continues to show resilience and refinement, particularly in the face of fluctuating economic sentiment and evolving buyer priorities. The CoreLogic Home Value Index (HVI) for June 2025 confirms a market that is holding firm in quality locations, especially in the prestige and tightly held segments.
Performance Overview
- Monthly Growth (June 2025): +0.5%
- Quarterly Growth: +1.1%
- Annual Growth: +6.3%
- Median Dwelling Value: $1,170,152
Sydney remains the most expensive capital city in the country, and with a limited supply of high-calibre stock, competition remains fierce in prestige areas.
Rental Market Trends
Rental conditions in Sydney remain exceptionally tight, with vacancy rates under pressure and rents continuing to climb. Annual growth in rents sits at a robust 7.4%, with demand far outpacing new supply.
- Gross Rental Yield: 3.0%
- Annual Change in Rents: +7.4%
The low rental vacancy rate continues to underpin investor sentiment. In high-demand inner city and harbourside locations, yields are improving as tenant competition intensifies.
Market Dynamics and Buyer Sentiment
Buyer demand remains strong, especially among high-net-worth buyers targeting blue-chip homes in the east, lower north shore, inner west, and beachside suburbs. With fewer listings, quality properties are selling quickly, often above expectations.
Key market factors influencing current conditions include:
- Recent rate cut, providing renewed momentum for buyers and investors
- The interest rate curve is now inverted, signalling expectations of future rate cuts and prompting increased buyer interest
- Limited quality stock, particularly in the $3M+ segment
- Strong overseas interest, particularly from expats and long-term investors
- Major infrastructure projects and proximity to top-performing schools continue to increase demand in key suburbs across Sydney
Looking Ahead
Sydney’s prime property market is likely to remain undersupplied throughout the second half of 2025. With affordability constraints curbing some of the middle-market movement, prestige and downsizer-driven segments continue to lead the way.
For buyers with long-term horizons and an eye for location, June’s results reaffirm the strength of well-selected Sydney assets.
Final Thoughts
At Rose & Jones, we continue to see strong demand from high-net-worth clients seeking premium properties in tightly held Sydney suburbs. June’s data reaffirms that the volatility of mid-2024 has created opportunity for those with a long-term view, with quality assets continuing to outperform in a resilient market. For individuals and families who see property as a strategic asset, now remains a compelling time to act. Whether you’re considering your next move or seeking discreet access to Sydney’s most desirable homes, our expert team is here to guide you. 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, June 2025
