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May 2023 Sydney Real Estate Market Update

The Sydney CBD has always been a hotbed for real estate activity, and May 2023 is no exception. As we delve into the property market update for the city I call home, we will explore the trends, developments, and factors shaping the Sydney CBD real estate scene. From residential to commercial properties, this article will provide you with a comprehensive understanding of the current state of affairs in the heart of Sydney.


Residential Property Market:

Despite a slight dip caused by multiple factors, such as interest rate increases, the Sydney CBD and inner city real estate market continues to experience steady demand.

Apartment Market:

There is currently a limited supply of apartments, creating a favorable environment for vendors who can secure slightly better prices and terms while buyer demand remains steady.

The Sydney CBD apartment market usually attracts investors and homebuyers alike. However, in the past 12 months, we have noted that most of our purchasers are home buyers/owner-occupiers. This trend gives an insight into how vendors can prepare their apartments for owner occupier instead of investors. 

Rental Market:

The rental market in the Sydney CBD remains competitive. Despite the pandemic’s impact, the demand for rental properties has rebounded as businesses gradually return to normal operations. As a result, rental prices have shown resilience, and landlords continue to enjoy healthy returns on their investments.

The following table demonstrates the contrasting performance of the CBD and select Inner City suburbs in relation to median sales prices and median rental prices, as per

Suburb Median Price 12-month growth Median Rental Price 12-month growth
Sydney CBD (apartments) $1,130,000 Down -6.6% $800 per week Up 23.1%
Haymarket CBD (apartments) $880,000 Down -11.6% $900 per week Up 30.4%
Pyrmont (apartments) $1,130,000 Down -10.7% $760 per week Up 20.6% 
Pyrmont (houses) $2,000,000 Down -20% $850 per week Up 13.3%
Ultimo (apartments) $705,400 Down -17.4% $640 per week Up 18.5%
Ultimo (houses) $1,450,000 Down -15.6% $810 per week Up 17.4% 
Chippendale (apartments) $725,000 Down -11.6% $700 per week Up 27.3% 
Chippendale (houses) $1,460,000 Down -12.4% $897 per week Up 8.1% 
Surry Hills (apartments) $870,000 Down -5.9% $630 per week Up 14.5%
Surry Hills (houses) $1,838,800 Down -17.9% $950 per week Up 5.6%

Commercial Property Market:

The commercial market is experiencing a slight softening currently, influenced by high-interest rates and investors’ reluctance to take risks with new commercial holdings. Reports suggest that over the past 12 months, most commercial buyers have been primarily owner-occupiers, reflecting a trend similar to the residential market.

Infrastructure Developments:

Public Transport:

The Sydney CBD continues to benefit from ongoing infrastructure developments to improve connectivity. Projects such as the Sydney Metro and light rail expansions have enhanced accessibility to the city, attracting both residents and businesses. These developments have improved commuting options and increased property values in areas with improved transport links.

Progress photo for Sydney Fish Market Development

Urban Regeneration:

The CBD is witnessing a wave of urban regeneration initiatives to revitalize flagship precincts. Projects like the redevelopment of Circular Quay, Darling Harbour, and Central Station have injected new life into these areas, attracting investors and driving property values upward. Such revitalization efforts are crucial in maintaining the vibrancy and attractiveness of the Sydney CBD real estate market.

In conclusion, May 2023 has brought positive developments in the Sydney CBD property market. The demand for prime properties, ongoing infrastructure projects, and urban regeneration initiatives continue to shape the Sydney CBD’s vibrant real estate landscape. Both residential and commercial segments display resilience and adapt to changing market conditions.

Investors and homebuyers looking to capitalise on the dynamic Sydney CBD property market should closely monitor these trends and seek professional advice to make informed decisions. With its iconic skyline, thriving business environment, and cultural attractions, the Sydney CBD remains a prime location for real estate investment and an exceptional place to call home.

Progress photo on Development of Residential Towers and Sydney Harbour Park at Barangaroo

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Joseph Fairchild

Joseph is an awards winning real estate agent, local property economist and thought leader in the property industry. He is well versed in advanced property strategies (such as vendor finance, delayed settlements and back-to-back settlements for off-the-plan properties) which many other agents would place neatly in the ‘too hard’ basket.

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