2025 saw a slight increase in apartment completions in Sydney’s inner precincts than 2024 with just over 2,500 completions

• Sydney’s inner precincts saw just over 2,500 new apartment completions in 2025, an increase from 2,200 in 2024. This upward trend is expected to continue, with forecasts indicating that approximately 3,000 apartments will be completed in 2026 from projects already under construction.
• Sydney’s median apartment sale price has surpassed $800,000, recording year-on-year growth of 4.5%. This increase was driven largely by the three-bedroom segment, which saw its median price climb by 9.5% over the same period. This marks the strongest median year-on-year price growth for Sydney apartments since mid-2022.

Median apartment rental prices have seen their first upwards movement in almost a year through the final quarter of 2025

• In the rental market, Sydney’s median apartment rent increased during the final quarter of 2025, closing the year 3.6% higher year-on-year at $730 per week. Growth was strongest for three-bedroom apartments, which experienced a 5.6% rental increase over the year.
• The rental vacancy rate held steady at 1.4% in Q4 2025, unchanged from the previous quarter. 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 appears to be moving into a period of renewed growth and confidence in 2026

• Transactional activity is strengthening. The number of new annual apartment leases is increasing, returning to long-term trends. Similarly, apartment sales volumes picked up in the latter half of 2025, reversing the downward trend seen earlier in the year.
• This shift is likely driven by an influx of first-home buyers and recent reductions in interest rates.

Outlook

• The data suggests Sydney’s apartment market is entering a period of renewed confidence and growth in 2026. Ongoing supply-demand imbalances will remain a key driver for both rental and sales price growth in the short term.
• Looking ahead to the medium term, continued policy reforms, housing incentives, and rising prices are expected to stimulate an increase in new housing supply across Sydney.