Sydney Autumn 2026 Property Market Report

Sydney’s residential property market continues to demonstrate resilience, with rising prices, improved sales activity and ongoing rental demand. The Autumn 2026 Sydney Property Report highlights a market underpinned by strong population growth, constrained housing supply and steady economic fundamentals.

For buyers, investors and homeowners, Sydney real estate remains one of Australia’s most tightly held and competitive property markets.

Sales activity strengthens amid improving market conditions

Sydney recorded a higher number of residential sales over the past year, with transactions rising to 100,387, exceeding the five‑year annual average.

Sales activity increased by approximately 4% year-on-year, supported by improved buyer confidence and stabilising economic conditions.

Homes are selling faster, with average days on market falling to 31 days, reflecting strong demand for well‑priced Sydney property across both houses and apartments.

Auction activity remains a key feature of the market, with clearance rates sitting at 56.1%, signalling balanced conditions between buyers and sellers.

Supply constraints continue to shape the market

Housing supply remains limited across Sydney. While new listings increased 11.6% year-on-year, total listings declined 8.9%, tightening available stock.

Population growth of 2.0% in 2024, following a strong rebound post‑pandemic, continues to drive housing demand across the city.

At the same time, new housing construction remains below previous levels, with new home delivery down 3.1%, while building costs have risen 4.6%, creating ongoing supply pressures.

Solid price growth across Sydney property market

Sydney property prices have continued to rise, increasing 7.8% annually, bringing the median residential price to approximately $1.29 million.

Quarterly growth of 2.1% highlights ongoing momentum, with both houses and apartments contributing to overall price gains.

Looking ahead, McGrath Research forecasts price growth of 3% in 2026, followed by a further 2% increase in 2027, pointing to a period of more moderate, sustainable growth.

Rental market remains tight with upward pressure

Sydney’s rental market continues to experience undersupply, with vacancy rates at 2.2%, below the balanced level of around 3%.

Median weekly rents have reached approximately $745, increasing 2.1% year-on-year, with further growth expected.

Rents are forecast to rise 7% in 2026, driven by population growth, limited rental stock and ongoing demand from tenants.

While gross rental yields sit at 3.47%, slightly lower than investor benchmarks, strong capital growth and rental demand continue to underpin Sydney’s appeal as a long-term investment market.

Economic fundamentals supporting demand

Sydney benefits from strong underlying economic conditions, including low unemployment at 3.5% and continued national economic growth.

Interest rates remain a key driver of affordability, with the cash rate at 4.10%, influencing borrowing capacity and buyer behaviour.

Combined with population growth and infrastructure investment, these factors continue to support demand for Sydney residential property across key metropolitan markets.

Outlook for Sydney property in 2026

With persistent supply constraints, strong population growth and resilient demand, Sydney’s property market is expected to remain stable in 2026.

For buyers and investors, the market offers a balance of capital growth, long-term security and global appeal, reinforcing Sydney’s position as a leading premium real estate market in Australia.

Explore the full Sydney Autumn 2026 Property Report for deeper insights into sales trends, pricing and rental performance across Sydney’s key locations.