Beyond the property playbook: Top trends of 2025.

2025 was a year of evolution for Sydney's property market: one where economic headwinds met structural transformation, and where adaptability, resilience, and opportunity defined how Sydney buys and sells. We look at the year’s defining trends – and how they’ll shape the market in 2026.

Rate Rollercoaster: Economic Policy At The Fore.

Interest rates remained at the heart of property decisions for Sydneysiders throughout 2025. Spikes of activity following three rate cuts in February, May, and August demonstrated the underlying appetite of buyers and sellers to transact. These rate cuts however proved to be mere 'sugar hits' - delivering temporary boosts in sentiment and engagement, but lacking the substance needed to improve broad-based participation in the Sydney property market. BresicWhitney believes that more rate cuts are required to deliver a healthy and balanced property market over the long-term.

The conversation continues to evolve, with economists now forecasting rate increases over 2026, following the holding of the cash rate at 3.60% in December. While inflation has fallen since its 2022 peak, it remains above the RBA's 2-3% target range. Combined with price growth across other capital cities, national pressures are likely to weigh on the RBA's future position.

According to BresicWhitney CEO Thomas McGlynn, housing, real estate, and the economy are intricately and deeply linked – and that's not going to change anytime soon. "Interest rates and affordability will remain the most defining theme of the Sydney property market in 2026. Should interest rates rise over 2026, it would certainly put the brakes on the property decisions for many Australians and increase the existing financial pressures for mortgage holders and aspiring buyers,” he said.

Mr. McGlynn added that the role of interest rates ran deeper than financial realities – informing sentiment and how Sydneysiders relate to homeownership. "In sought-after markets like Sydney, lowering interest rates democratises who can participate in the process of buying a home. This plays a major role in shaping community sentiment and how we perceive the opportunities available to us all as individuals.

The Supply Squeeze: Unlocking Growth Across Sydney.

A key theme of 2025 has been housing supply, or the lack thereof, according to BresicWhitney. "So long as the imbalance between supply and demand continues across Metropolitan Sydney, the current market conditions and dynamics will persist to some degree. It's unrealistic to expect otherwise."

The year however did bring positive news, with the NSW Government outlining a clear mandate to increase supply across the state. It’s aiming to deliver 350,000+ dwellings by 2029, as part of the Federal Government's national housing targets. In September, the State Government revealed an overhaul of the current planning system and launched a new Housing Delivery Authority aimed at consolidating development approval pathways.

Key lifestyle precincts were earmarked for supply increases. The announcement of up to 10,000 new dwellings across Woollahra and Edgecliff in the Eastern Suburbs, alongside the delivery of the long-stalled heavy rail station, sparked robust public debate. Other areas slated for supply increases include the North Shore (Chatswood CBD) and Inner West (Parramatta Road, Wentworth Park, Burwood)

Delivering more housing across Sydney remains critical, and BresicWhitney is supportive of well-established lifestyle suburbs - those with existing strong amenity and public infrastructure – playing their part in unlocking supply. However, a long-term plan for housing supply that meets the diverse lifestyles and socio-economic needs across the state must underpin the state’s approach.

Suburb Shuffle: Sydney's Evolving Lifestyle Map.

The economic challenges grabbed the headlines but quieter transformations gained pace in 2025. The hunt for value has evolved Sydney's lifestyle map from predominantly established postcodes to now include transforming and emerging territories – and expect this to accelerate further over 2026.

Diverse buyer movement as illustrated by BresicWhitney sales, highlighted that it’s a trend occurring both within neighbouring postcodes and on a wider scale. Movement between areas like Paddington, Potts Point, and Darlinghurst reflected a desire for familiar connections among local buyers. Greater migrations across the lifestyle markets such as Rozelle to Marrickville, Redfern to Erskineville, and Woollahra to Mosman reflected the comparable value that today's savvy buyers are attuned to.

These are patterns BresicWhitney has long witnessed and proudly connect thousands of buyers and sellers every year within comparable Sydney suburbs. But it’s evolved over 2025, said Mr. McGlynn. "What appears to have shifted over 2025 is the level of strategy now embedded within these choices. It's no longer simply opportunistic and it shows the level of sophistication of current buyers and how deeply they’re thinking about their real estate decisions."

As migration continues, so will the evolution of 'sister suburbs'. This means increased interest from buyers in the neighbouring postcodes of the more established suburbs, where compelling value is on offer. Think Hunters Hill to Ryde, Mosman to Cremorne, Darlinghurst to Zetland, Marrickville to Sydenham, and Surry Hills to Chippendale and more. Sister suburbs offer comparable amenity, lifestyle, and connectivity – and they'll remain increasingly strategic alternatives rather than compromises for buyers across 2026.

Buyer Behaviour Breaks With Tradition.

Changes to when and how Sydney buys and sells property came to life across 2025, with the clearest indicator being that seasonal patterns no longer dictate decision-making. Traditionally, the start of Spring ushers in peak activity, but that failed to materialise in 2025. Not only did it not launch with the expected velocity, but it continued to subvert tradition: activity surged across quieter periods such as Winter, school holidays, and long weekends.

The day before the October long weekend recorded BresicWhitney's highest number of properties sold in a single business day, with total sales value exceeding $49 million. Homes across Paddington, Newtown, Balmain, Willoughby, and Ryde sold via various methods: prior to auction, private treaty, and off-market. While peaks were distributed across the year, momentum concentrated after the August rate cut. 40% of top days by volume for BresicWhitney occurred in Q4, with 30% in Q3, 20% in Q2, and 10% in Q1.

"In the past, it would have been unusual to see a peak before a long weekend and during the school holidays," said Mr McGlynn. "This tells us that Sydneysiders are staying closer to the property market than ever before, and that economic conditions influence decision-making more than seasonal patterns or a belief in needing to 'time the market'. By and large, that’s a positive and provides more flexibility and year-round opportunity for those looking to buy or sell.”

This shift also revealed itself in how properties changed hands. BresicWhitney expects off-market sales to gain further traction over 2026. The property group sold more than 20% of its total homes in 2025 exclusively on its website, bw.com.au. Speed, discretion, and lower advertising costs remain key benefits for sellers who choose to sell off-market. Benefits for buyers include being among the first to view properties once listed, and receiving advance notice prior to public launch.

Generational Rental Reform Takes Hold

2025 marked a turning point for Sydney's rental market too: The NSW Government prioritised legislative reform focused on tenant protections, ending 'no grounds' evictions, introducing easier pathways for pet ownership, and capping rent increases to once per year.

The reforms arrived as the rental market recalibrated after years of pressure. Rental increases and pandemic-driven migration changes shaped tenant demand and affordability. Meanwhile, it was rising interest rates and increasing ownership costs that led many investors to withdraw from the market. As these conditions stabilise, attention has shifted to what comes next. Further rental growth is expected, with Domain's expecting 4% rental growth for houses and 5% growth for units over 2026. Meanwhile, despite the interest rate-cutting cycle generating a moderate return of investors to the market, BresicWhitney expects this momentum to stall if interest rates increase next year.

Chantelle Collin, BresicWhitney’s Head of Property Management, said 2025 represented genuine progress. "The protections now in place for tenants will support a sustainable and fair rental market for years to come. It’s important that investors and owners remain central to the conversation too. Without private investment, there will not be sufficient housing supply for tenants. The focus ahead should remain on delivering balanced policy that supports market conditions for both parties - a tenant and an owner - to come together in the first place."

Outlook

As Sydney moves into 2026, these five themes will continue to shape the market. Challenges persist, yet the adaptability and ability to weather changes across 2025 suggests that Sydney's property market remains resilient and ready to navigate the road ahead.

Stay tuned for BresicWhitney’s 2026 Market Outlook, on bw.com.au.

Beyond the property playbook: Top trends of 2025.

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