Record Highs Across the City
Sydney’s property market has surged to record-breaking levels once again, as lower interest rates and limited housing stock drive fierce competition among buyers. The latest data reveals that Sydney’s median house price has soared to an all-time high of $1.56 million, while the median unit price has also reached a peak at $860,000.
Steady Growth in a Tight Market
Over July, dwelling values across Greater Sydney grew by 0.12%, continuing a six-month upward streak. Though growth has slowed slightly compared to earlier in the year, even modest percentage increases represent significant dollar jumps in such a high-value market. As PropTrack economist Anne Flaherty explains, a 0.5% increase can equate to thousands more in costs for buyers — especially in premium areas.
Upsizers Drive Demand for Quality Homes
Upsizers are currently leading the charge, showing strong interest in turnkey properties in blue-chip and inner-city suburbs. These buyers, often with considerable equity and borrowing power, are snapping up top-tier listings and setting suburb record prices — in some cases by millions. Recent headline sales include a $13.5 million purchase in North Sydney and a $9.33 million transaction in Chatswood, both smashing previous records by wide margins.
Shortage of Listings Intensifies Competition
This surge is being driven not only by rate cuts but also by a pronounced shortage of quality listings. Many buyers are now aggressively targeting homes that require no renovations, partly due to uncertainty around soaring construction costs. As a result, properties that are move-in ready are being fought over at auction, while homes with drawbacks or renovation needs are sitting on the market longer.
Nationwide Growth and Affordability Pressures
Beyond Sydney, other capital cities are also seeing price growth. Brisbane, Adelaide, Perth, and Canberra each recorded increases between 0.6% and 0.9% in July. Nationally, dwelling values have climbed consistently since February’s initial interest rate cut, with further reductions expected in the coming months.
Housing Supply Still Falling Short
Despite an 11.9% monthly jump in new dwelling approvals — and a year-on-year increase of 27.4% — supply is still far from meeting demand. Australia approved just under 186,000 new homes over the past year, well short of the 240,000 needed annually to meet federal housing targets.
Expert Advice Is Key in a Volatile Market
Experts like Rodney McLoughlin have long emphasized the importance of understanding how macroeconomic shifts influence buyer behavior and long-term investment strategy. As affordability pressures grow and rate cuts continue, buyers are wise to remain strategic, discerning, and guided by informed advice.
With many Australians turning to property as a vehicle for wealth creation in a high-cost living environment, the Sydney market’s current trajectory reinforces the critical role of expert insights in navigating such complex conditions.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 8 August 2025.
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.
