Surprise Sydney Suburbs Lead the Charge

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October 2025 Market Snapshot

The major players in Sydney’s real estate market aren’t where most people would anticipate them to be. Sydney’s unit market, particularly in the outer-west and south-west districts, saw the most price increases this quarter, according to realestate.com.au.

Key Highlights

  • Units dominate growth: 14 of the top 15 performing suburbs (July–Sept 2025) were units.

  • Top suburb: Lalor Park – up ~20% this quarter (from ~$507k to ~$608k).

  • Other fast-rising suburbs: Yagoona (+12%), Bass Hill (+10%), Miller (+11%).

  • PropTrack economist Angus Moore notes affordability is pushing buyers towards “more affordable options like units further from the city.” (Source)

Nationally, the PropTrack Home Price Index shows Australian home values rose 0.5% in September, up 6.2% annually, with Sydney up 0.7%. (Source)

TOP SYDNEY SUBURBS BY MEDIAN PRICE GROWTH

(September quarter 2025, All unit markets)
Suburb Area Median price  Quarter-on-quarter change (per cent) 
Lalor Park Sydney – Blacktown $607,807 20
Yagoona Sydney – Inner South West $710,892 12
Darling Point Sydney – Eastern Suburbs $3,070,925 12
Miller Sydney – South West $656,628 11
Norwest Sydney – Baulkham Hills and Hawkesbury $990,518 11
Ashcroft Sydney – South West $661,652 10
Bass Hill Sydney – Inner South West $860,474 10
Bligh Park Sydney – Outer West and Blue Mountains $845,005 10
South Windsor Sydney – Outer West and Blue Mountains $783,247 10
Punchbowl Sydney – Inner South West $593,175 9

Source: PropTrack

What’s Driving the Trend?

  • Affordability: With houses at record highs, units are offering the best entry point.

  • Renewed demand: Outer-ring suburbs like Blacktown, Yagoona, and Bass Hill are drawing first-home buyers and investors.

  • Tight supply: Australia is building ~62,000 fewer homes than needed yearly, keeping upward pressure on prices. (Source)

  • Rental pressure: Sydney unit rents are forecast to rise 24% by 2030, further supporting investor demand. (Source)

For Sellers

  • Timing is strong: Unit owners in growth suburbs are well-positioned to sell.

  • Presentation matters: With more listings coming online, standout marketing and realistic pricing are key.

  • Highlight location advantage: Suburbs with strong quarterly growth are seeing renewed investor confidence.

For Buyers

  • Units offer value: Growth suburbs still sit well below Sydney’s median.

  • Focus on access & amenities: Proximity to transport continues to drive buyer interest.

  • Act early: Competition is growing as affordability attracts more buyers.

First Home Guarantee Scheme

Significant modifications will be made to the Australian government’s Home Guarantee Scheme starting on October 1, 2025. These changes include increased home price caps, uncapped spots, and no income requirements. With these modifications, more first-time homebuyers will be able to buy homes with lesser down payments (down to 5%), and permanent residents will be able to take advantage of the program without having to pay Lenders Mortgage Insurance.

Regional centres in New South Wales – Illawarra, Newcastle, and Lake Macquarie

The shift towards Sydney’s unit market reflects a broader affordability and lifestyle reset. Buyers chasing value are widening their search radius, and sellers with well-located apartments are reaping the rewards.