Sydney’s property market remains one of the strongest and most complex in Australia. While house prices have levelled off in some suburbs, others continue to grow due to strong housing demand, population growth, and limited housing supply. As of 2025, the median house price is around $1.4 million, reflecting how competitive the market still is.
Property prices remain shaped by the broader economy—especially interest rates set by the Reserve Bank—and local real estate conditions such as infrastructure upgrades, buyer sentiment, and employment rates. Despite the challenges, Sydney’s housing market continues to show long-term resilience, offering opportunities for those who plan strategically.
When we talk about housing affordability, it’s not just about what a property costs—it’s whether you can manage mortgage repayments, essential living costs, and still enjoy a balanced lifestyle. For first-home buyers, affordability means achieving financial comfort, not just home ownership.
In an expensive rental market, many buyers see the shift to home ownership as a long-term way to stabilise their housing costs. If repayments remain manageable even when interest rates rise slightly, that usually signals a realistic purchase.
Saving a deposit is often the biggest challenge. Most lenders still expect a 10–20% deposit, meaning you’ll need between $140,000 and $280,000 for a typical Sydney home based on today’s median house price.
If that feels out of reach, there are still viable paths for home buyers:
Understanding these options can make a huge difference when planning your property market entry.
The NSW and Federal Governments continue to refine programs aimed at improving housing affordability and encouraging home ownership. Available schemes in 2025 include:
Meanwhile, Social Housing strategies in New South Wales are being reviewed to improve equity across the housing supply spectrum. These broader policies help ease pressure on the entire housing market, though eligibility rules for financial assistance still apply.
Affordable suburbs are still out there—you just have to look beyond the inner ring. Sydney’s western and south-western suburbs, including Blacktown, Liverpool, and Campbelltown, continue to offer more approachable property prices while benefitting from new infrastructure projects.
As house prices remain high in central areas, apartments provide a practical alternative for first-home buyers. Apartment living offers lower entry costs, easier maintenance, and access to lifestyle amenities. It also supports population growth near major employment zones, which can strengthen long-term home values.
The rental market and build-to-rent projects are another growing part of Sydney’s property scene. These developments give flexibility to renters while relieving pressure on the housing supply.
Beyond the purchase price, there are upfront and ongoing housing costs to factor in—stamp duty, conveyancing, moving expenses, and maintenance fees. A safe approach is to allocate at least 5% of your property value to cover these extras.
If you’re considering a property that needs work, be honest about your renovation budget. Owning real estate comes with responsibilities, so predictability and preparedness are key.
Your borrowing power depends on income, expenses, debts, and deposit size. With banks applying stricter lending standards, it’s smart to prepare early by cleaning up debts, improving savings, and reviewing your credit score.
The Reserve Bank and recent interest rate cuts have impacted borrowing capacity across the country. Lower rates can help boost affordability, but the housing market often responds quickly, pushing property prices higher as more buyers re-enter the market. Staying informed about potential rate movements helps you plan for long-term stability.
If you’re aiming to buy soon, consider these simple ways to improve your position:
These strategies reflect how real estate in Sydney still offers possibilities for determined home buyers.
Determining the “perfect” time is tough—even experts disagree. While some are waiting for further housing market corrections, others are moving quickly to lock in loans during periods of interest rate cuts.
Ultimately, the right time to buy depends on your personal readiness, financial stability, and long-term security. What matters most is ensuring your purchase fits comfortably within your goals and budget.