Understand the Sydney Property Market in 2025

Disclaimer: This blog is for general information only and does not constitute financial or legal advice. Readers should conduct their own research and seek professional guidance before making any decisions.

Sydney's property market has been making headlines in 2025, with notable growth and evolving buyer-seller dynamics. One of the key questions being asked is: Are we in a buyer's market or a seller's market? In this blog, we break down current indicators and what they mean, particularly for sellers, in today's Sydney market.

What is a Buyer's vs. Seller's Market?

To understand the current landscape, it's essential to define what constitutes a buyer's market versus a seller's market:

Buyer's Market

This occurs when there is more supply than demand, giving buyers greater negotiating power. Prices tend to stabilise or decrease as sellers compete for fewer buyers.

Seller's Market

In contrast, a seller's market enables sellers to command stronger prices, allowing sellers to set higher prices and negotiate from a position of strength

Key Indicators:

Days on the Market

Shorter sale times typically point to a seller's market, while longer selling times suggest a buyer's market.

Clearance Rates

High auction clearance rates typically signal strong demand, favouring sellers

Stock Levels

A low number of listings relative to buyers indicates a seller's market, whereas an oversupply suggests a buyer's market. 

Current Sydney Property Market Snapshot (April 2025)

As of April 2025, the Sydney property market continues to show strong signs of a seller's market:

Median Prices

The median house price in Sydney is approximately $1,190,616, while units are around $851,934

Auction Clearance Rates 

Recent figures indicate high clearance rates, reflecting strong buyer competition and limited supply.

Supply vs Demand

There has been a slight increase in property listings compared to last year, but overall supply remains constrained, which is maintaining upward pressure on prices.

Investor Activity 

There is notable activity from both local and interstate investors, particularly in areas with strong rental yields.

Buyer Behaviour

While buyer demand is strong, many buyers are cautious due to affordability constraints and interest rate pressures.

Factors Influencing the Market Right Now

Interest Rates 

Interest rates play a pivotal role in buyer behaviour. The Reserve Bank of Australia (RBA) has recently cut interest rates, which is expected to boost buyer confidence and borrowing capacity. This change is likely to encourage more buyers to enter the market, especially as affordability improves.

Seasonality

Typically, Sydney experiences increased activity in the second quarter as spring approaches. This year, we're seeing an earlier-than-usual uptick with buyers becoming more active post-Easter.

Supply and Stock Levels

Currently, there is a mixed picture regarding supply. While some vendors are listing their properties confidently, others are holding off, as implied by "leading to a constrained supply."

Buyer Demand

Demand is being driven by various factors, including lifestyle choices, proximity to schools, and investment returns. First-home buyers and upsizers are particularly active in the market.

Suburb Spotlights: Mixed Market Conditions

Sydney's property market is not uniform; different suburbs are experiencing varied conditions:

Hot Market

Areas like the Inner West and Eastern Suburbs are still favouring sellers due to high demand and limited supply.

Opportunities Areas

Conversely, outer suburbs are seeing price stabilisation or slight drops, with prices stabilising, creating timely opportunities for value-driven buyers.

What This Means for Sellers

If you are considering selling in the current market, here are some tips:

Pricing Strategy 

A well-researched and strategic pricing approach is crucial based on current market conditions.

Presentation and Staging 

Professionally staged, well-presented homes continue to attract strong interest.

Working with an Experienced Local Agent: 

Collaborate with a knowledgeable agent who understands the local market dynamics. At ACPM, our team of experts is equipped with deep local market knowledge to guide you through the process.

Timing and Strategy

Sellers who time their listings well, whether to align with seasonal demand or local activity, are achieving excellent outcomes.

Expert Insights: What Our Agents are Seeing

According to our experts at ACPM, the market is showing signs of recovery, but buyers need to be strategic and informed. We are seeing a mix of cautious buyers and confident sellers. Recent open homes have reflected this balance, with well-presented, competitively priced homes continuing to perform strongly while others linger on the market.

Conclusion

As of April 2025, Sydney is clearly showing signs of a seller's market, characterised by strong demand, high auction clearance rates, and limited supply. Whether you are preparing to list or simply exploring your options, staying informed and strategic is key, as market conditions can vary significantly by suburb and property type.

Ready to make your next move in Sydney's dynamic market? For tailored, up-to-date advice or a property appraisal, contact Robin Wang at ACPM via robin@acpm.com.au for property appraisal or buying advice.