Sydney Spring 2026 Property Market Report

Sydney's property market enters Spring 2026 with a mixed outlook. Sales activity has strengthened over the past year and homes are selling faster than they were 12 months ago, demonstrating continued buyer engagement despite changing economic conditions. However, rising stock levels, softer quarterly price growth and forecasts for further price correction suggest a more balanced market is emerging. Meanwhile, rental conditions remain tight, with vacancy rates holding well below a balanced market level and rents continuing to climb.

Market snapshot

Sydney recorded 96,816 residential property sales in the year to Q2 2026, representing annual growth of 2% and surpassing the five-year average. Properties are taking an average of 30 days to sell, four days faster than a year ago, reflecting resilient demand across many local markets. At the same time, new listings are down 8.2% year-on-year, although total listings have risen 12.4%, providing buyers with greater choice than this time last year.

Property prices

Sydney's median residential property value sits at $1,260,700, up 3.1% over the past 12 months. However, values declined 2.9% during the most recent quarter, highlighting changing market conditions. McGrath Research forecasts Sydney residential prices will decline by 9% by the end of 2026, followed by a further 3% reduction in 2027 as affordability constraints, interest rates and supply factors continue to influence market activity.

Rental market

Rental conditions remain undersupplied across Sydney, with vacancy rates recorded at just 1.8% at the end of Q2 2026. The shortage of available rental stock continues to place upward pressure on rents, with median weekly rents increasing 6.2% annually to $775 per week. Looking ahead, rents are forecast to rise a further 5% by the end of 2026 and 6% in 2027.

Economic drivers

A growing population, low unemployment and ongoing housing supply constraints continue to shape Sydney's property market. Population growth remained steady at 1.4% in 2025, while unemployment tracked at 4.1%, below the national average. New dwelling completions in NSW were 1.5% lower than a year earlier, despite a rise in building approvals. Construction costs also increased 4.6% during 2025, adding further pressure to new housing delivery.

Outlook for Sydney property

McGrath Research forecasts Sydney residential property prices will decline by 9% by the end of 2026 as affordability pressures, interest rates and economic uncertainty continue to weigh on buyer demand. Despite this outlook, healthy sales volumes, ongoing population growth and constrained housing supply are expected to provide underlying support for the market over the longer term. Rental market conditions are also expected to remain tight, with rents forecast to continue increasing as supply struggles to keep pace with demand.

Explore the full Sydney Spring 2026 Property Report for detailed insights into sales trends, pricing and rental performance across the city.