Sydney apartment prices post strongest growth since 2022

The city’s median apartment sale price has surpassed $800,000 in 2025.

Sydney’s apartment market recorded its strongest annual price growth since mid-2022, with median values rising 4.5 per cent year-on-year to surpass $800,000 in 2025, according to a report from JLL.

The consultancy said the increase was largely driven by the three-bedroom segment, where median prices climbed 9.5 per cent over the same period, helping lift overall apartment values across the market.

Supply also edged higher in 2025. JLL said just over 2,500 apartments were completed across Sydney’s inner precincts during the year, up from about 2,200 in 2024. The upward trend is expected to continue, with around 3,000 completions forecast in 2026 from projects already under construction.

Rental conditions remain tight despite modest price increases. JLL reported that the median apartment rent rose to $730 per week by the end of 2025, representing annual growth of 3.6 per cent. Three-bedroom apartments again led gains, with rents increasing 5.6 per cent over the year.

Vacancy rates remain well below historical norms. According to JLL, Sydney’s apartment vacancy rate held steady at 1.4 per cent in the December quarter, significantly lower than the long-term average of 2.3 per cent, indicating ongoing pressure on rental supply.

Market activity has also begun to improve. JLL said apartment sales volumes strengthened in the second half of 2025, while new lease activity returned to long-term trends, supported by lower interest rates and increased participation from first-home buyers.

Looking ahead, JLL expects Sydney’s apartment sector to enter a period of renewed confidence and growth in 2026. Persistent supply-demand imbalances are likely to support both rental and sales price increases in the short term, while policy reforms and housing incentives could encourage a larger development pipeline over the medium term.