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Well, the numbers are in and 2025 was another year of housing growth in Sydney – for better or worse.
Recent data released in Domain’s Quarterly House Price Report shows that median house prices in the city rose by a further 2 per cent ($34,177) in the last quarter of 2025.
The steady increase brought annual growth to 6.4 per cent, meaning that if you want to buy property in Sydney you’re now looking at a record median price of $1.76 million. Wowzers.
So your dreams of becoming a homeowner may have just slipped further out of reach as the competitive market continues to wreak havoc amid an already challenging financial climate.
RELATED READ: Yes, you can still buy by the beach: 12 NSW suburbs under $1m
One key takeaway from the report is the uptick in unit purchases – perhaps signalling a clear shift away from unattainable house prices as buyers try to squeeze their way into the market.
Data from Domain showed that units outperformed houses in the final quarter of 2025. However, the median price of a unit in Sydney jumped to $844,390, so take that all with a grain of salt.
Domain’s Chief of Research and Economics, Dr Nicola Powell, says that the growth trend in unit purchases is being felt across many of the major cities.
“We’re seeing buyers gravitate towards units in Sydney, Melbourne and Brisbane in search of relative value, while smaller capitals like Perth and Adelaide are leading the charge on house price growth,” she said.
With tight housing supply forecast to continue through 2026, let’s hope some of us can get a slice of the pie in the near future.
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