Buyer confidence returns as the market steadies
As 2025 draws to a close, Sydney’s inner city market is showing signs of quiet strength. While prices in the CBD have eased slightly, buyer activity has picked up – and this time, it’s not just browsers. We’re seeing genuine, finance-approved buyers stepping forward again, a healthy mix of both owner occupiers and investors. The recent government first home buyer scheme have helped restore confidence.
Sydney CBD
- Median apartment price: $980,000
- 12-month price movement: ⬇️ -2.2%
- Average days on market: 88 days
The Sydney CBD market has found its rhythm again. After several years of pandemic recovery and a short lived boom, we’re now seeing a stabilised marketplace. Buyers are selective but serious, and investors are once again recognising the long term strength of the city’s rental demand.
Vacancy rates remain low, and rental yields are keeping investor confidence afloat, even as sales values consolidate. For sellers, presentation and timing are key – demand remains consistent for properties that offer lifestyle appeal, strong natural light, and a quality building reputation.
Haymarket
- Median apartment price: $961,500
- 12-month growth: ⬆️ +2.7%
- Average days on market: 71 days
- Gross rental yield: 5.5%
Haymarket has been one of the quiet achievers of 2025. Its proximity to universities, Chinatown, and the light rail has kept both tenants and buyers circling. The suburb has seen a lift in international buyer activity, particularly from returning students and expats, which has supported solid price growth and an impressive rental yield of 5.5%.
For investors, Haymarket continues to offer strong occupancy and minimal downtime, making it a standout performer among the CBD fringe suburbs.
Pyrmont
Houses
- Median price: $2,950,000
- 12-month growth: ⬆️ +65.7%
- Average days on market: 34 days
- Rental yield: 2.6%
Apartments
- Median price: $1,100,000
- 12-month growth: ⬇️ -4.3%
- Average days on market: 67 days
- Rental yield: 4.0%
Pyrmont’s house market has been the surprise story of the year – limited supply and increasing demand from working families have driven prices sharply upward. With a median now approaching $3 million, Pyrmont’s prestige homes are holding their own alongside inner east postcodes.
Apartments tell a more balanced story. Prices have eased slightly, offering attractive buying opportunities for investors chasing a 4% yield and the promise of capital growth once supply tightens again. Demand remains strong for one bedroom layouts with parking and water views, particularly from corporate tenants and professionals.
Surry Hills
Houses
- Median price: $2,400,000
- 12-month growth: ⬆️ +14.3%
- Average days on market: 39 days
- Rental yield: 2.7%
Apartments
- Median price: $904,000
- 12-month growth: ⬇️ -2.5%
- Average days on market: 44 days
- Rental yield: 4.3%
Surry Hills continues to hum along as one of Sydney’s most in demand city fringe suburbs. The suburb’s energy, café culture, and connectivity make it a magnet for buyers seeking convenience without compromising lifestyle.
While house prices have surged thanks to limited stock and fierce competition, apartments have seen a mild correction – not a slowdown, but a normalisation after years of strong growth. Investor interest is firm, supported by steady rental yields above 4%.
Chippendale
Houses
- Median price: $1,767,500
- Period: November 2024 – October 2025
- 12-month growth: ⬇️ -2.3%
- Average days on market: 28 days
Apartments
- Median price: $742,500
- Period: November 2024 – October 2025
- 12-month growth: ⬇️ -2.2%
- Average days on market: 92 days
Chippendale remains a tightly held pocket of the inner city where demand consistently outweighs supply. The slight price dips reflect a temporary cooling period rather than a trend – stock levels are low, and properties continue to sell quickly when well priced.
Houses in particular are turning over in under a month, highlighting the strong owner-occupier demand for this small but desirable suburb. Apartments have softened slightly, giving buyers a rare entry point into one of Sydney’s most creative, walkable precincts surrounded by universities, galleries, and Central Park amenities.
Metro Realty Insight
Despite the broader slowdown across parts of Sydney, the inner-city market remains remarkably resilient. Buyers are more discerning, but they’re also more serious — ready to act on the right property rather than waiting on the sidelines.
We’re seeing:
✅ Fewer speculative enquiries, but stronger-quality buyers
✅ Consistent rental demand with minimal vacancy gaps
✅ Renewed confidence from returning investors
Heading into 2026, the outlook for Sydney’s city and fringe markets is one of measured optimism. The fundamentals- limited supply, high rental demand, and long-term capital stability – remain firmly in place.
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