What’s Driving Sydney Property Prices Right Now?
If you’ve been following property headlines, you might be feeling a little confused.
Interest rates are high. Cost-of-living pressures are everywhere. And yet in many parts of Sydney, property prices are not just holding steady, they’re rising.
So what’s really going on?
At The Acquiry, we speak to buyers, agents, and sellers every single day. And while there’s never just one reason prices move, there are a few key factors shaping Sydney’s current property market, and they may not be what you expect.
1. Low Supply, High Demand
Let’s start with the obvious: stock levels are tight.
There simply aren’t enough quality homes coming to market to meet demand. And when good properties do list, competition can be fierce.
This imbalance between supply and demand is keeping prices buoyant in many suburbs, even in the face of broader economic uncertainty.
In some areas, especially tightly held neighbourhoods with high owner-occupier appeal, buyers are waiting months for something suitable to hit the market. That kind of scarcity naturally puts upward pressure on price.
2. Quality is Driving the Competition
Not all properties are performing equally.
We’re seeing real price resilience in homes that are well-renovated, well-located, or offer something unique—natural light, privacy, walkability, or outdoor space. In contrast, stock that’s compromised (poor layout, awkward position, noisy street) is taking longer to move and sometimes struggles to meet expectations.
In other words, buyers are willing to stretch their budgets for quality, but they’re more cautious about compromising.
This is especially true in the premium and family home segments, where buyers are thinking long term and prioritising lifestyle over short-term savings.
3. The Return of Expats and High-Income Buyers
While first-home buyers and investors are active, one group having a growing impact is returning expats.
Many are coming home with strong foreign incomes or significant cash reserves. And because they’ve often been living in high-cost global cities like New York, London, or Singapore, Sydney prices don’t feel as intimidating to them.
We’re also seeing strong activity from high-income local buyers who are less rate-sensitive and more focused on upgrading their lifestyle or securing their “forever home.”
4. Investors Are Back, But More Selective
After sitting out parts of the past two years, investors are slowly returning to the market, particularly in suburbs where rental demand is soaring and vacancy rates are at record lows.
But today’s investors are more strategic. They’re doing deeper due diligence, focusing on long-term capital growth, and prioritising low-maintenance assets over high-yield distractions.
This new wave of investors is less speculative and more disciplined.
5. Micro-Markets Matter More Than Ever
Here’s the truth: there’s no such thing as “the Sydney market.” There are hundreds of micro-markets, each with their own dynamics.
Some suburbs are seeing strong quarterly growth. Others are flat. And a few are still adjusting to the new rate environment.
The difference often comes down to three factors:
Scarcity (how tightly held is the suburb?)
Quality of stock
Demographic demand (who wants to live there, and why?)
If you’re only looking at citywide averages, you’re missing the real story.
How to Navigate the Current Market
This isn’t a market for guesswork.
It’s a market where insight, timing, and clarity count. If you’re clear on what you want, understand the local market, and have a smart buying strategy, there are still excellent opportunities out there.
At The Acquiry, we help buyers cut through the noise and focus on what matters: value, quality, and long-term liveability.
We don’t chase trends. We build strategies.
Thinking of Buying in Sydney? Let’s Talk.
If you’re trying to make sense of the current market, or just want a clearer picture of what’s happening in the suburbs you care about, we’re here to help.
“Reach out to The Acquiry for a no-pressure consultation. Because the smartest buyers aren’t always the first, they’re the best informed.”