There were 1,300 new apartment completion in the first quarter of 2026

• Sydney saw just over 1,300 new apartment completions to March 2026, with a further 5,900 set to be complete this year. There are a further 14,000 units under construction and 34,000 in planning. However, these are still largely tentative, with construction cost pressures and rising interest rates continuing to strain feasibilities.
• Sydney’s median apartment sale price continues to steadily grow, reaching $822,800 and recording year-on-year growth of 5.5%. This growth has been driven by three-bedroom apartments, seeing 11.3% year-on-year growth, continuing to outpace the other typologies.

Median apartment sale prices are continuing to track upwards after a slow period of growth

• In the rental market, Sydney’s median apartment rent has remained at $730 per week since the end of last year and saw 1.4% year-on-year growth. Three-bedroom apartments saw the largest year-on-year growth at 5.6%, with rents now sitting at $950 per week.
• The rental vacancy rate decreased to 1.3% from 1.8% in December 2025. This rate is well below the long-term average of 2.3%, suggesting that pressure on existing rental stock remains high.

Sydney’s apartment market is entering into a new stage of renewed growth and confidence in 2026

• Transactional activity has seen a slight decrease through the first quarter of 2026. Apartment sales have decreased 11% from the previous year. New apartment leases have also slowed, down 17.6% in the same period.
• This shift is likely driven by increases in the cash rate because of sticky inflationary pressures with buyers and renters alike hesitant to enter or move within the market.

Outlook

• Sydney seemed to be entering a period of renewed confidence, with growth rates finally picking up again, but more recent uncertainties may dampen this through 2026. Despite this, ongoing supply-demand imbalances will remain a key driver for both rental and sales price growth in the short term.
• In the medium term, if new development can get out of the ground, we are likely to see some excess demand pressure come out of some parts of the market. However, if this is not achieved unmet demand will continue to see sale price and rental growth across the apartment market.