Sydney House Prices Surge: Up to 30% Growth in a Year
Sydney’s property market has reignited with remarkable force, with prices in some suburbs rising by nearly 30 per cent over the past 12 months. The latest Domain House Price Report (September Quarter 2025) shows Sydney’s median house price climbed 3.4 per cent in just the past three months alone, reaching a new record of $1.75 million. Unit prices also rose 1.9 per cent to $840,422, marking the fastest quarterly growth in two years.
According to Domain’s Chief of Research and Economics Dr Nicola Powell, momentum has accelerated due to multiple factors including three cash rate cuts in 2025, stronger consumer confidence, constrained supply, and the government’s 5 per cent First Home Guarantee.
The report highlights that price strength is uneven across the city, with both luxury and affordable areas experiencing strong demand. Premium suburbs like Cammeray saw house prices surge by 29 per cent to a new median of $3.38 million, while Darling Point unit prices climbed 25.5 per cent to $2.95 million.
Top Sydney Suburbs – House Price Growth (Year to September 2025)
| Suburb | Median | Annual Change |
|---|---|---|
| Cammeray | $3,380,000 | 29.0% |
| Lidcombe | $1,790,000 | 24.5% |
| Mount Pritchard | $1,180,000 | 24.2% |
| Bankstown | $1,485,000 | 21.2% |
| Kingswood | $900,000 | 20.0% |
| Wyong | $815,000 | 19.0% |
| Mount Druitt | $900,000 | 18.5% |
| Cabramatta | $1,152,000 | 18.2% |
| Long Jetty | $1,180,000 | 18.0% |
| Crows Nest | $3,000,000 | 17.1% |
| Mannering Park | $815,000 | 16.4% |
| Auburn | $1,355,000 | 15.6% |
| Villawood | $1,105,000 | 15.3% |
| Halekulani | $790,000 | 15.2% |
| Birchgrove | $3,200,000 | 15.1% |
| Paddington | $3,750,000 | 15.1% |
| Bateau Bay | $1,167,500 | 15.0% |
| South Hurstville | $1,650,000 | 15.0% |
| Surry Hills | $2,415,000 | 15.0% |
| Campsie | $1,700,000 | 14.9% |
Source: Domain House Price Report, September Quarter 2025
Meanwhile, more affordable areas have also seen significant growth as first home buyers and investors seek better value. Lidcombe rose 24.5 per cent to $1.79 million, Mount Pritchard increased 24.2 per cent to $1.18 million, Bankstown grew 21.2 per cent to $1.48 million, and Kingswood jumped 20 per cent to $900,000.
For apartments, Balgowlah was up 18.6 per cent to $1.33 million, Stanmore rose 17.9 per cent to $955,000, Milsons Point climbed 17.4 per cent to $2.17 million, and Redfern increased 15.9 per cent to $1.2 million.
Top Sydney Suburbs – Unit Price Growth (Year to September 2025)
| Suburb | Median | Annual Change |
|---|---|---|
| Darling Point | $2,950,000 | 25.5% |
| Balgowlah | $1,327,500 | 18.6% |
| Stanmore | $955,000 | 17.9% |
| Milsons Point | $2,172,500 | 17.4% |
| Redfern | $1,200,000 | 15.9% |
| Greenwich | $927,500 | 15.4% |
| Maroubra | $1,112,800 | 13.6% |
| Paddington | $1,050,000 | 13.5% |
| Rose Bay | $1,850,000 | 13.5% |
| St Ives | $1,010,000 | 12.8% |
| Alexandria | $935,000 | 12.5% |
| Lakemba | $495,000 | 12.5% |
| Croydon | $888,000 | 12.2% |
| Manly Vale | $1,120,000 | 12.0% |
| Gladesville | $830,000 | 10.7% |
| Crows Nest | $1,015,000 | 10.6% |
| Freshwater | $1,280,000 | 10.1% |
| North Sydney | $1,200,000 | 9.1% |
| Northmead | $610,000 | 8.9% |
| Carlton | $800,000 | 8.8% |
Source: Domain House Price Report, September Quarter 2025
Economists suggest Sydney’s strong performance is being driven by a mix of interest rate cuts, population growth from overseas migration, a tight jobs market, and the slow pace of new housing supply. While construction activity is improving, it remains insufficient to meet growing demand, which continues to place upward pressure on prices.
Former Westpac Business Bank chief economist Besa Deda noted that despite affordability challenges, market resilience remains strong, supported by population growth and the expectation of further rate cuts next year. The government’s 5 per cent deposit scheme has also brought more buyers into the market, particularly among first home purchasers who see renewed opportunity despite the higher borrowing thresholds.
The current conditions have created a sense of urgency among buyers. With prices rising rapidly and limited stock available, many are realising that waiting could mean being priced out altogether.
For those looking to buy, preparation and knowledge are now critical. Understanding all the costs involved — including stamp duty, FIRB fees, and land tax — can make a significant difference when making fast, confident decisions.
Download the Australian Property Buyer & Investor Essential Guide today to gain the insights and strategies needed to navigate the market effectively and act before the next surge. Download Now
Source: Domain.com.au
Data: Domain House Price Report, September Quarter 2025.