Sydney Market Update — October 2025

Summary: Sydney home values were broadly flat in October, edging down slightly while rental conditions stayed tight. With the RBA holding the cash rate at 3.60% and markets debating a late-year cut, buyers faced mixed signals as listings improved only modestly.

  • Location: Sydney, NSW
  • Period: October 2025
  • Audience: Buyers & Renters

Key Stats (at a glance)

Metric Value Period Source
Home values (m/m) -0.1% Oct 2025 CoreLogic HVI (reported)
Vacancy rate (national) 1.2% Sep 2025 SQM Research
RBA cash rate 3.60% (held) Sep–Oct 2025 Reserve Bank of Australia
National home prices (context) +0.8% m/m Sep 2025 Reuters (national context)

Note: Sydney-specific October rental metrics publish in early November; national vacancy is shown for market tightness context.

What changed and why

  • Prices: Early October readings show Sydney slightly negative month-on-month (-0.1%), while Brisbane/Perth outperformed, keeping Sydney’s spring softer than other capitals.
  • Rates: The RBA held at 3.60%, keeping a data-dependent stance into late 2025 as inflation prints guide expectations.
  • Rentals: National vacancy at 1.2% underscores tight leasing conditions heading into late spring; Sydney remains among the tighter capitals by city norms.

For buyers

  • Budget buffers: Serviceability improves only if a further RBA cut materialises. Arrange pre-approval and compare suburb-level comps before bidding.
  • Stock mix: With top-quartile houses softer, mid-priced townhouses/units may offer better near-term value.

For renters

  • Apply early: With low vacancy, prepare ID, payslips, and references; consider 12-month terms to reduce mid-year rent shock.
  • Suburb trade-offs: Watch fringe-metro pockets where weekly medians lag inner-east/north shore levels.

Risks & caveats

  • Data timing: Some October metrics publish in early November; figures blend timely indicators with September context.
  • Intra-city dispersion: Suburb medians can diverge from the city headline due to stock type and price-quartile mix.

Sources

  • CoreLogic – Hedonic Home Value Index (October snapshot)
  • SQM Research – National Vacancy Rate (September 2025)
  • Reserve Bank of Australia – Monetary Policy Decisions 2025
  • Reuters – National home price context (September 2025)

 

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