Sydney apartment prices continue upward trend in 2026

Annual price growth reached 5.5% in Q1.

Sydney's apartment market continued to record steady price growth in the first quarter of 2026, supported by ongoing supply-demand imbalances, according to JLL.

The city recorded just over 1,300 apartment completions during the quarter, with a further 5,900 units expected to be delivered during the remainder of the year. Around 14,000 apartments are currently under construction and approximately 34,000 more are in planning.

JLL noted that much of the future pipeline remains uncertain due to ongoing construction cost pressures and higher interest rates affecting project feasibility.

The median apartment sale price reached AUD822,800, representing annual growth of 5.5%. Three-bedroom apartments continued to outperform the broader market, posting annual price growth of 11.3%.

Rental conditions remained tight. Median apartment rents held at AUD730 per week, up 1.4% year-on-year, while three-bedroom apartment rents increased 5.6% to AUD950 per week.

Sydney's rental vacancy rate fell to 1.3% from 1.8% at the end of 2025, remaining well below the long-term average of 2.3%.

Despite improving pricing fundamentals, market activity softened during the quarter. Apartment sales declined 11% year-on-year, while new apartment leases fell 17.6%, reflecting caution among buyers and renters amid higher borrowing costs and persistent inflation pressures.

JLL said Sydney appeared to be entering a new phase of growth and confidence, although near-term uncertainty could moderate momentum through 2026. The consultancy expects supply constraints to remain a key driver of both rental and sales price growth in the short term.