By 2030, Sydney’s property market is expected to be characterised by significantly higher prices, intensified demand driven by population growth, major infrastructure developments, and a dramatic shift towards sustainability and higher-density living. As buyers’ agents, we anticipate these trends will reshape how property is purchased, valued, and experienced throughout the city. Knowing what lies ahead can help property buyers make more informed property buying decisions today.
Projected Price Growth
According to PropTrack research, the median house price in Sydney (which sat at $1,521,611 in July, 2025) is projected to reach approximately $2.4 million by 2030, representing an estimated increase of around 60 percent from current values. Apartment (unit) prices are expected to rise from a median of $697,000 in July, 2025 to $880,000 by the end of the decade. This continued upward trajectory is a function of consistent population influx, wage growth, and exceedingly high demand for well-located housing.
Key Drivers of Change
Population Growth and Demand
Sydney will maintain its position as Australia’s pre-eminent financial and commercial hub, and its population is forecast to increase substantially through 2030. According to the latest NSW population projections, NSW will have nearly 1 million more people by 2034, with more than 650,000 of them living in Sydney. Strong migration, both international and interstate, will underpin the need for additional housing, while higher disposable incomes among the knowledge-worker demographic are also anticipated to support sustained price pressure in sought-after locations such as the Inner West.
Infrastructure Expansion
Major infrastructure projects already underway including the Sydney Metro expansion, West Harbour Tunnel, Western Sydney Airport, and new light rail systems are anticipated to unlock new precincts, improve connectivity, and make fringe and emerging suburbs increasingly desirable to buyers. These projects are poised to foster new employment hubs beyond the CBD, thereby redistributing property demand more broadly across greater Sydney. For example, By 2032, Metro West is slated to double rail capacity between Greater Parramatta and the CBD, reinforcing the value of station‑adjacent precincts and transit-oriented development that can compound capital growth over the long term.
Housing Supply Challenges
Despite state and federal housing targets such as the commitment to build 1.2 million homes nationally by 2029 with plans for an additional 172,900 homes in Sydney by 2029, supply constraints are expected to persist. Planning delays, construction capacity limits, and ongoing affordability barriers will likely moderate the rate at which projected dwelling numbers are achieved.
The Shape of Sydney’s Property in 2030
High-Density and Sustainable Living
Sustainable, higher-density residential developments, particularly in central and well-connected locations, will become increasingly common. The City of Sydney’s “Sustainable Sydney 2030” vision calls for environmentally responsible buildings, more communal green spaces, a target of 7.5 percent of all dwellings being affordable rental accommodation and an additional 7.5 percent being social housing by 2030. Buyers should expect a greater prevalence of carbon-neutral, energy-efficient buildings and the integration of smart home features.
Suburban Diversification
Property price increases are projected to be sharper in select inner and middle suburbs with superior access to infrastructure, employment, and amenities such as public transport and schools, hospitals and universities. However, affordability pressures will likely make outer suburbs and growth corridors more attractive to both investors and owner-occupiers. Infrastructure expansion may produce new hotspots in western and south-western Sydney, broadening investment interest beyond traditional blue-chip areas.
Ongoing Affordability Issues
Although there will be incremental increases in affordable and social housing supply, these are not forecast to keep pace with the rapid rise in property values, meaning home ownership and even rental accommodation will be out of reach for a growing proportion of residents. We anticipate a continued increase in first home buyers relying on government incentives, shared equity schemes, and innovative financial products to enter the market.
Lending settings and affordability
APRA has confirmed the mortgage serviceability buffer remains at three percentage points in 2025, a setting that moderates borrowing capacity and can temper demand impulses from any rate cuts, particularly for first-home buyers and highly leveraged cohorts. Unless macroprudential conditions ease, borrowing power will continue to be a gating factor, amplifying the relative appeal of smaller dwellings, shared equity, or build‑to‑rent as stepping stones into preferred locations.
Build-to-rent and tenure diversification
Policy support and planning incentives are accelerating build‑to‑rent (BTR) and co‑living, with the City of Sydney advancing additional floor space incentives to increase rental supply in Central Sydney and a pipeline nearing 5,000 dwellings in that LGA alone either delivered or in the system. Large BTR schemes such as the proposed Timberyards precinct in Marrickville (Inner West) signal a structural shift in tenure mix, adding scale rental options, affordable quotas, and institutional management standards to Inner West submarkets.
Implications for Property Buyers
- Intensified Competition: Buyers will face a highly competitive environment, requiring expeditious decision-making and robust financial preparation.
- Greater Reliance on Buyers’ Agents: As the market becomes more complex, the expertise of buyers’ agents in sourcing, negotiating, and securing property will continue to grow in demand.
- Focus on Liveability and Sustainability: Purchasers will increasingly prioritise features such as energy efficiency, public transport proximity, and access to green spaces as these factors become more central to both value and lifestyle appeal.
- Diversified Property Portfolios: Investors are likely to diversify across sectors (houses, units, townhouses) and locations (emerging suburbs as well as established markets) to mitigate risk and maximise capital growth.
Conclusion
By 2030, the Sydney property market will be defined by elevated prices, strong demand, world-class infrastructure, and a decisive pivot towards sustainable, high-density urban living. To navigate these shifts, buyers’ agents are uniquely positioned to deliver the insight and advocacy required to secure optimal outcomes for property buyers. We recommend that any prospective buyer seeking to enter, upgrade, or invest in Sydney property over the coming years engage with experienced professionals who can navigate the challenges and seize the opportunities of this evolving landscape.
