Sydney Winter 2026 Property Market Report

Sydney’s residential property market continues to show resilience, with rising sales activity, faster selling times and strong rental demand. The Winter 2026 Sydney Residential Property Report highlights a competitive market, supported by population growth, constrained housing supply and sustained buyer interest across Greater Sydney.

For buyers, investors and owner‑occupiers, Sydney real estate continues to offer strong capital growth, competitive rental returns and long‑term investment potential despite evolving affordability conditions.

Sales activity strengthens across Sydney
Residential sales across Sydney increased 6% over the past year, reaching 101,099 transactions and exceeding the five‑year annual average.


This uplift reflects improving market activity, driven by population growth, economic factors and sustained buyer demand.


At the same time, homes are selling more quickly, with average days on market falling to 30 days, highlighting strong competition for available stock.

Supply constraints continue to shape market conditions
Housing supply across Sydney remains constrained, with new listings declining 10.4% year‑on‑year and total listings down 3.1%.


Population growth of 1.4% continues to support housing demand and place pressure on available stock.


Construction delivery declined 1.4% over the past year, contributing to ongoing supply limitations in the housing market.

Strong price growth with moderating outlook
Sydney residential property prices increased 7.7% over the past year, bringing the median residential value to approximately $1,298,800.


Quarterly price growth of 0.5% indicates continued, albeit moderating, upward momentum across the market.


Looking ahead, McGrath Research forecasts price growth of 1% in 2026, followed by a slight 3% decline in 2027, signalling a period of stabilisation.

Rental market remains undersupplied
Sydney’s rental market continues to face undersupply, with vacancy rates at 1.8%, well below the balanced benchmark of 3%.


Rents increased 4.8% year‑on‑year to a median of $765 per week, reflecting strong tenant demand and limited supply.


Rental growth is expected to continue, with rents forecast to rise 7% in 2026 and a further 5% in 2027.


Gross rental yields currently sit at 3.49%, providing stable returns in a high‑value market.

Economic fundamentals supporting demand
Sydney’s housing market is supported by steady population growth and broader economic activity, although borrowing costs remain a key factor.


The cash rate currently sits at 4.35%, influencing borrowing capacity and housing affordability.


Unemployment is recorded at 4.7%, supporting household income levels while reflecting evolving labour market conditions.

Outlook for Sydney property in 2026
With improving sales activity, constrained supply and strong rental demand, Sydney’s property market is expected to remain competitive through 2026.


For buyers and investors, the market offers a balance of growth potential, rental performance and long‑term value, particularly as supply constraints and population growth continue to shape conditions.

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