Sydney Property Update — What We’re Seeing in 2025

Hi there,

We wanted to share a thoughtful update on what’s happening in Sydney’s property market as we move through 2025—whether you’re a buyer, home owner, or landlord, there’s a lot to be aware of right now.

Market Recovery and Growing Confidence

Over the last few months, Sydney has shown clear signs of recovery. The interest rate cut earlier this year has helped restore buyer confidence, and while property price growth isn’t as steep as it has been in previous cycles, values are now rising steadily. In fact, Sydney prices are just 1.4% below their last peak—so it wouldn’t be surprising to see new record highs in some suburbs very soon.

Population Growth Fuelling Long-Term Demand

Sydney continues to grow at a rapid pace, with more than 650,000 new residents expected to move here by 2034. This surge is putting ongoing pressure on an already tight housing supply. Construction delays and limited new stock are pushing more buyers and renters toward established homes in sought-after areas, especially in the inner and middle rings.

Rental Market Remains Extremely Tight

According to CoreLogic’s Quarterly Rental Review for March 2025, Sydney’s rental vacancy rate stands at 1.9%, a slight increase from 1.7% in March 2024. This figure is below the 2–3% range typically considered indicative of a balanced rental market, highlighting ongoing challenges for renters in the city. This has created fierce competition for rentals, driving up weekly rents and boosting yields for investors. With more international students and skilled migrants arriving, we’re expecting demand to stay high—and the shortage of available homes to continue.

It’s Not One Market—Choose Wisely

Sydney is not a uniform market. As buyers agents in the Inner West, Inner City, and Eastern Suburbs—and as a property management team—we’re seeing firsthand how some areas are clearly outperforming others, particularly those with strong infrastructure, lifestyle appeal, and higher local incomes. A-grade homes and investment-grade apartments in the Inner West, Inner City, and gentrifying middle-ring suburbs continue to attract strong interest and deliver long-term growth.

Affordability and Strategy Still Matter

Affordability remains a challenge for many buyers, especially with borrowing capacity still tighter than before. But that’s where strategy comes in—focusing on areas where wages are higher and residents have multiple income streams means investing where there’s more resilience and less vulnerability to economic shifts.

A Window of Opportunity for Smart Buyers

You might have heard people say “Sydney’s too expensive” or “you’ve missed the boat.” But in every market cycle, there are windows of opportunity—and this is one of them. Investors and homeowners we’re working with right now are securing properties that may well look like bargains this time next year.

We’re Here to Help

We know how overwhelming the property market can feel—but you don’t have to navigate it alone. Whether you’re looking to buy your first home, upgrade, or invest in a long-term performer, we’re here to guide you with experience, insight, and care.

Feel free to reach out anytime—we’d love to hear from you. Book a free 20-minute chat about your property search or get in touch below:

Warmly,

Renae & the team at Treak Real Estate

📞 0433 156 465

📧 renae@treakrealestate.com.au

🌐 www.treakrealestate.com.au