Overview of Market Trends
Sydney’s property market has started to turn a corner in early 2025, with March recording a 0.3% increase in home values after three months of minor declines. While it’s not a booming market by any means, the latest data from CoreLogic suggests renewed buyer confidence, particularly in Sydney’s high-end property segment.
Price Trends and Market Performance
Sydney’s median home value now sits at $1,186,459, marking an annual growth rate of 1.1%. The top-end of the market is leading the recovery, reflecting historic trends where premium suburbs tend to bounce back the fastest when economic sentiment improves. However, on a quarterly basis, values are still down 0.9%, highlighting the fragility of the recovery.
Listings and Buyer Activity
A significant factor shaping the market is low stock levels. Over the past month:
New listings were 4.7% lower than the same time last year.
Total advertised stock remains 7.9% below the five-year average.
The return of auction clearance rates to long-term averages is another indicator that buyers are re-engaging with the market, albeit cautiously. This is particularly evident in established suburbs where quality homes remain in strong demand.
Rental Market Analysis
Sydney’s rental market, which has been notoriously competitive in recent years, is showing signs of stabilisation. Unit rents increased by 2.7% annually, significantly lower than the 17.9% peak in 2023, suggesting that the worst of the rental crisis may be behind us. However, vacancy rates remain low, and affordability pressures persist, particularly for tenants in inner-city areas.
Challenges and Opportunities
- Economic Uncertainty: With interest rates still relatively high, some buyers remain cautious about entering the market.
- Low Stock Levels: The persistent shortage of housing stock is likely to keep prices supported, even if buyer demand remains subdued.
- Luxury Market Strength: The high-end property market is showing renewed strength, making this a potential window for premium investors and upgraders.
Final Thoughts
Sydney’s property market is regaining stability after a challenging period, with modest price growth and renewed optimism. While affordability remains an issue, strong demand, limited new supply, and Sydney’s economic appeal continue to underpin property values.
For those considering entering the market, timing will be crucial. If sentiment continues to improve and interest rates ease later in the year, we could see increased competition and stronger price growth in the months ahead. Navigating this dynamic landscape requires strategic insight, and 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, March 2025
