Sydney apartment prices up 3.2% in Q3

Three-bedroom apartments saw the greatest growth.

Sydney’s median apartment sale price saw a 3.2% growth rate year-on-year to Q3 2025, with three-bed apartments experiencing the most growth at 5.9%, according to a recent JLL report.

“The increase in this growth rate has been seen throughout 2025, seemingly catching up to the house market which only saw year-on-year median sale price growth of 3.9%.”

Here’s more from JLL:

Apartment development in the inner precincts of Sydney is starting to show growth, and completions YTD have surpassed completions in 2024. Year to date there have been 2,962 apartments completed in Sydney’s inner precincts, with a further 861 units to be completed by the end of the year.

Completions have been slower to achieve after commencement, a trend that is seen nationally.

Planning policy reform and other housing initiatives from the NSW Government are likely to see an increase in supply in the medium term

The median apartment rental price in Sydney remains at its all-time peak of $720 per week, however, has remained constant at this level through 2025. With the stagnation in rental price growth, the year-on-year growth rate of the median rental price reduced to 2.9% in Q3 2025 from 4.3% in Q2 2025.

Rental vacancy has decreased to 1.4% over the quarter across Greater Sydney. The number of new leases is increasing year-on-year with just under 54,000 new leases in the 12-month period to September 2025, up from 48,500 in the same period to September 2024. This is still well below the period to September 2020, which saw over 105,000 new apartment leases. Apartment sales however have slipped year-on-year to just under 38,000 in the 12-months to September 2025, down from nearly 41,000 in the year prior.

Outlook

The ongoing supply and demand imbalance will remain a key driver for rental and sales pricing growth in the short term. Federal assistance for first-home buyers is likely to increase pricing pressures at the lower end of the market, especially with present supply constraints.

Active policy reforms and housing incentives within the NSW Government along with increased buying power will likely see an uptick in new housing supply across Sydney into the medium term.