Sydney Property Market Update: Which Suburbs Are Putting Prices Up?
The Sydney property market is experiencing a notable resurgence in 2025, with several suburbs leading the charge in price growth. After a period of relative stability, the market is now showing signs of renewed momentum, driven by a combination of economic factors, population growth, and ongoing infrastructure projects.
Fastest-Growing Suburbs in Sydney
Recent data highlights that suburbs such as Lalor Park, Yagoona, and Darling Point have seen some of the highest growth rates, with median house prices rising by up to 20% in just one quarter. These gains are not isolated; other suburbs like Randwick, Bondi, and Surry Hills are also experiencing strong activity, with minimal vendor discounts and brisk sales.
The Inner West, including Marrickville and Petersham, continues to attract young professionals and families, while boutique apartments in lifestyle hubs like Bondi, Bronte, and Coogee are in high demand, especially for those seeking proximity to the beach or city amenities.
What’s Driving the Sydney Property Market?
Several key factors are contributing to Sydney’s price surge:
Infrastructure Development: Ongoing transport upgrades, such as the new Western Sydney Airport and improved rail links, are making western and southwestern suburbs more attractive to commuters and investors.
Population Growth: Sydney’s population continues to grow, increasing demand for both rental and owner-occupied properties. Immigrants, young professionals, and families are settling in the city, further intensifying competition for housing.
Tight Supply: New dwelling approvals in NSW have fallen to decade lows, resulting in a mismatch between demand and available housing. This shortage is one of the biggest forces behind the city’s price resilience.
Interest Rates: The Reserve Bank of Australia’s rate cuts in early 2025 have decreased mortgage rates, enhancing borrowing capacity and boosting buyer confidence, particularly in major markets like Sydney.
Valuation Advice for Sydney Property Owners
If your property is in one of these high-growth suburbs, a professional market valuation is essential. Whether you’re planning to sell, refinance, or update your investment portfolio, knowing your home’s current market value helps you make informed decisions and maximise your returns.
For investors, a valuation can also help with capital gains tax (CGT) reporting, ensuring compliance and accurate financial planning.
The Sydney market is moving quickly, and property owners should ensure they are not missing out on the benefits of recent price growth. With forecasts predicting continued steady growth into 2026, staying informed and up to date on your property’s value is key to any successful investment strategy.
CGT Valuations for Investors
A CGT valuation by an independent property valuer is essential for accurately calculating your capital gain when selling an investment property, as it establishes the market value at a specific date. Often the purchase date, the date of a major renovation, or the date you first rented out your home. This ensures your cost base is correct, which directly impacts the amount of tax you pay, and helps avoid overpaying or underpaying CGT.
A professional CGT valuation by a certified property valuer is also required by the ATO for compliance, especially if you have incomplete records, are gifting or inheriting property, or have made significant improvements. It provides an independent, evidence-based assessment that supports your tax return and protects you from audit risk, ensuring your position is defensible and transparent.
Stamp Duty Valuations for Property Owners
A stamp duty valuation by a certified property valuer in Sydney is required whenever property is transferred between related parties, gifted, or transferred into a trust or superannuation fund, as the transaction price may not reflect the true market value.
State revenue offices use these valuations to ensure the correct amount of stamp duty is paid, based on the property’s fair market value at the time of transfer rather than the agreed price, which is especially important for non-arm’s-length transactions.
A professional stamp duty valuation report is prepared by a certified valuer and includes a detailed assessment of comparable sales, property condition, and location factors. This ensures compliance with state regulations and protects you from overpaying or underpaying duty, while also providing a defensible record if your transaction is reviewed.
If you want to read more about types of valuations required by investors and property owners in Sydney, check out our Services Page for more information.
For a free property valuation quote, or to discuss your independent property valuation needs, contact ValueMax Property Valuers today.
