Sydney’s property market is now back in a phase we’d describe as “normal”.
The craziness and intensity of the pandemic property boom has well-and-truly calmed down. But, at the same time, we’re not seeing prices slide like they did in many suburbs over 2022 and 2023. Instead, Sydney buyers and sellers are behaving as we’d typically expect them to behave.
That said, it’s been so long since we’ve seen a “normal” market that I think a lot of people have forgotten what that looks like.
Why today’s property market is “normal”
Before we get too far into our analysis, it’s important to note that “normal” doesn’t mean depressed – far from it. The property market is strong right now – something we can plainly see through rising prices. Cotality’s annual “Best of the Best” Report shows that, across Australia, year-to-date growth in dwelling prices is 7.7% – well above the 20-year average of 5.1% growth.
Cotality’s Home Value Index also shows Sydney’s median home value rose 0.5% in November 2025, 1.8% over the previous quarter, and a solid 5.1% in the last 12 months, so that it now stands at a record $1,269,659.
We wrote about what’s driving the local market in our November Market Update, and these factors are still fundamental as we end 2025.
There’s also plenty of good news for local property owners. According to Cotality, nine of Sydney’s top 10 performing suburbs for houses (highest median value) were in the Eastern Suburbs: Point Piper, Bellevue Hill, Vaucluse, Darling Point, Double Bay, Rose Bay, Dover Heights, Tamarama and Bronte. When it came to apartments, Point Piper, Darling Point and Tamarama also featured in the top 10.
The difference between what buyers and sellers want
An interesting trend that is playing out in the market right now is a gap between what sellers list for, and the price points at which buyers search. This was the subject of Domain’s recent Matching Demand Report.
While a gap between buyer and seller expectations exists across the city – sellers want more than buyers are willing to pay – the biggest difference of all is in Sydney’s “eastern suburbs-north”, which includes suburbs from Bellevue Hill to Bondi Beach and Point Piper. In this part of the eastern suburbs, there is a massive $2 million difference between what buyers wanted to pay ($3.5 million) and sellers wanted to receive ($5.5 million) for houses.
In part, the mismatch can be attributed to rising property prices, with realestate.com.au data showing that prices in the Eastern Suburbs have risen faster than anywhere else in the city (up 4.49% in the last three months).
But perhaps the gap is also down to many home buyers expecting – or at least wanting – to pay less than the price sellers are asking. We’d also argue that many sellers are expecting too much right now.
If a property is properly priced, marketed effective and presented well it does attract strong demand. We’ve already sold an incredible $236,886,000 worth of property this year. Every property that sold quickly met the above criteria and often sold for far in excess of initial expectations.
However, it’s a different story for properties that need work or are priced too high. While these properties may eventually sell, they tend to linger on the market for some time, with vendors often having to meet the market by taking a sale price below initial expectations. Very often that means accepting an offer that would be less than would have been achieved if they pivoted earlier in the campaign or managed their price, presentation and promotion better.
What do buyers and sellers need to know as we move into 2026?
Towards the end of 2025 we saw stock levels increase and we still have a lot of good properties ready to launch in the new year.
For buyers, more properties might mean more choice, but the reality is that quality property will attract others, too. That means you will need to be both prepared and proactive.
For sellers, we can’t stress enough how important it is to be careful with pricing, presentation and marketing right from the start of the campaign to attract interest and competition.
Our highlight sales for 2025
Below are some of the properties we’ve sold over the past year.
5/42 Macleay St Potts Point: This three-bedroom apartment in the iconic “Manar” sold within seven days for $9,500,000, proving that good properties don’t last long and buyers need to be prepared to move fast.
3a/77 Macleay St Potts Point: A luxurious three-bedroom apartment in the heart of Potts Point with expansive interiors designed by acclaimed designer/architect Sue Carr, this gem sold off market for $11,000,000.
502/14 Macleay St Potts Point: This three-bedroom apartment in the pet-friendly Pomeroy Building sold off-market for $9,550,000 in just 7 days, showing the strong demand for this type of property and the popularity of the building.
63/17 Wylde St, Potts Point: Spectacular harbour views meet classic Modernist design with this gorgeous two-bedroom apartment in a prized, heritage-listed security block that sold at auction for $2,150,000. This far exceeds the $1,510,000 median value of a two-bedroom Potts Point apartment.
48/8 Greenknowe Ave, Elizabeth Bay: This two bedroom apartment sold for $3,900,000 – or more than double the $1.6 million suburb median apartment median value.
81/95 Elizabeth Bay Rd, Elizabeth Bay: This four-bedroom, 275sqm apartment on the 8th floor of the prestigious ‘Toft Monks’ building boasts panoramic, north-facing views. It sold off market for $11,500,000, per square metre record for an unrenovated apartment in the building.
5/28 Billyard Ave, Elizabeth Bay: This four-bedroom, 497sqm garden apartment, sold off market in just 21 days. The $28 million sale price was a record per square metre rate for non-development stock in the area.
21 Chambers Ave, Bondi: This stunning three-bedroom family cottage offered a quintessential beachside lifestyle. It sold for $5,060,000.
24 Douglas St Clovelly: An incredible opportunity in Clovelly, this freestanding three-bedroom family home with renovation potential sold at auction for $5,300,000. The sale demonstrated the continued strength of the beaches, with Clovelly’s median house price rising 19.2% over the last year to $5,485,000.
Want more?
If you’re considering buying or selling in Sydney’s East, contact my team for expert guidance.
