Sydney to record 1,500 apartment completions for the rest of the year

Completions are expected to increase further into 2027.

Apartment development in the inner precincts of Sydney is starting to show growth after a slowdown in 2022, according to a report from JLL. Year to date there have been 1,172 apartments completed in Sydney’s inner precincts, with a further 1,500 expected for completion later in the year.

“Completions have been slower to achieve after commencement, a trend that is seen nationally. Annual apartment completions are expected to rise further into 2027, yet still below pre-2020 levels,” the report said.

Here’s more from JLL:

Sydney’s median apartment sale price saw a 3.1% growth rate year-on-year to Q2 2025, and an increase on the year-on-year growth rate seen in Q1 2025 (1.3%). The increase in this growth rate has been seen throughout 2025, however is lagging the house market which saw year-on-year median sale price growth of 4.7%.

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 4.3% in Q2 2025 from 5.9% in Q1 2025.

Rental vacancy has remained at 1.5% over the quarter across Greater Sydney. Renters are increasingly staying put with the number of new apartment leases at a 10-year low. Sales volumes have increased year-on-year for apartments, however, are down on Q4 2024.

New apartment leases are down on Q2 2024; however, these are up on Q4 2024, which was a 10-year low. House rentals have followed a similar trend, now also rising from a 10-year low.

Outlook

A supply and demand imbalance will likely remain a driver for pricing growth in the short term. Reductions in the cash rate will likely further push demand levels, alleviating some of the affordability constraints. Any increased buyer activity, and upward pricing trends as a result may accelerate development activity.

The NSW Government’s Pre-Sale Finance Guarantee is also likely to accelerate housing development.