Sydney Property Is Back — And The Smart Money Knows It

For years, the talk has been that Sydney is too expensive, that the best time to buy has passed, and that the market will cool. Yet history shows Sydney never stays quiet for long.

After the Reserve Bank’s first interest rate cut earlier this year, buyer activity lifted and clearance rates rose above 70 per cent across multiple weekends. CoreLogic data shows Sydney values have increased more than seven per cent over the past year, with several suburbs already surpassing pre-COVID peaks.

Migration and population growth are adding to the pressure. New South Wales is projected to gain almost one million new residents over the next decade, with roughly two-thirds settling in Sydney. That means around 650,000 additional people will be looking for homes in a market already short on supply. Vacancy rates remain at record lows of 1.1 per cent across Greater Sydney, while rental prices have climbed more than twelve per cent year on year, according to Domain’s September 2025 report.

Building approvals have fallen by twenty-two per cent in the past year, and rising construction costs have slowed new completions. The gap between demand and supply is widening, creating upward pressure on both rents and prices.

Investors are returning to the market, particularly to apartments. CoreLogic data shows Sydney units have risen 5.6 per cent in the past twelve months, outperforming many outer- suburban houses. Units offer lower entry prices, strong rental yields, and minimal maintenance, making them attractive for both new and experienced investors.

Why Sydney Units Make Sense Right Now

1. Affordability and flexibility – Units often cost thirty to forty per cent less than houses in the same suburb, helping investors reduce stamp duty and diversify across more than one property.
2. Consistent rental demand – With international students and new arrivals returning, inner-city and mid-ring unit rents have increased more than fifteen per cent over the past year, according to SQM Research.
3. Limited new supply – Apartment completions are expected to remain below long- term averages until at least 2027, keeping competition tight for quality stock.
4. Strong long-term outlook – Sydney’s limited land supply, high employment, and lifestyle appeal continue to make it one of the most resilient property markets in Australia.

Where Opportunity Is Emerging

Astute investors are focusing on established suburbs with strong transport links, schools, and employment hubs. Middle-ring and lifestyle-driven areas are already seeing renewed buyer interest, while smaller units in premium postcodes are selling faster than last year.

The Takeaway

Timing matters. The best results come to those who act before the headlines confirm the trend. With interest rates easing, supply tightening, and population growth accelerating, Sydney’s next growth phase is forming.

For more than 30 years, Property Club has helped members identify and secure opportunities before the boom. To discover where Sydney’s next growth wave is building, contact Property Club at enquiries@propertyclub.com.au.