Sydney Property Market Update November 2026
Whether you're buying, selling or investing, keeping up with the Sydney property market can feel like a full-time job. Prices shift, listings rise and fall with the seasons and auction results can change the mood of the market from one weekend to the next.
That's why we put together this monthly Sydney property market update. Each month we break down what's happening with Sydney house prices, median values, new listings, auction clearance rates and rental conditions, so you can make decisions based on real data rather than headlines.
We'll also look at what's driving the numbers, from interest rates to buyer demand and housing supply, and what it could mean for you over the coming months.
Sydney's decline continues
Sydney values fell 1.6% in October, following a revised 1.5% fall in September. Values have now fallen every month since March.
The steepest monthly fall came in July, when values dropped 1.8%. Since then, the pace of decline has eased only slightly, with monthly falls holding between 1.5% and 1.6%. That's a sharper pace than both the national market (down 1.2% in October) and the combined capitals (down 1.4%).
Meanwhile, Brisbane, Adelaide and Perth, which were previously among Australia’s strongest property markets, are now recording some of the sharpest monthly falls.
The bigger picture: the sharpest correction of any capital
Sydney values are now 10.1% below their February 2026 peak, the largest fall from peak of any capital city. What stands out is the speed: Sydney reached its record high only this year, so the full correction has played out in around eight months.
Rising interest rates have been a key driver. The RBA has raised the cash rate five times since February, taking it to 4.85% in November, the highest setting in 18 years. According to Cotality, those increases have reduced borrowing capacity for a median-income household by almost $90,000. In a market as expensive as Sydney, that hits buyers particularly hard.
The longer-term figures add useful context. Over the past decade, Sydney dwelling values have risen 34.5%. By comparison, values in Adelaide and Brisbane have roughly doubled, while Perth has risen 93.2%. Only Darwin and Melbourne have recorded weaker growth over the same period.
While it's too early to call the bottom, a sharp correction following a decade of relatively modest growth could create opportunities for well-prepared buyers once conditions stabilise.
Price declines by value segment
As is common in both downturns and upswings, the top end of the market tends to move first and furthest.
In the three months to September, values in Sydney's lowest quartile fell 2.5%, while the middle of the market fell 4.7% and the most expensive quartile fell 5.6%.
For anyone thinking about upgrading, this is good news. With premium properties falling faster than entry-level homes, the price gap between your current home and your next one has narrowed, making that step up more achievable.
For example, if you own a $1,000,000 home and have your eye on a $1,800,000 property, a 2.5% fall would take your home to $975,000, while a 5.6% fall would bring the upgrade to $1,699,200. That narrows the gap by more than $75,000.
Selling isn't the only option when you upgrade, either. If you bought your current home before 12 May 2026, you may be able to keep it as an investment property and still negatively gear it under the grandfathering provisions of the new rules. This "upgrade and retain" strategy won't be available to anyone buying an established property from here on, so it's worth looking at how your current loan is structured before making your next move.
Houses vs units
The same pattern is playing out between houses and units. In October, Sydney house values fell 1.9%, while unit values fell 0.7%.
The trend is even clearer over the past 12 months, with house values down 10.8% compared to a 5.6% fall for units.
Houses sit at the higher end of the market, so it's no surprise they're seeing larger falls, in line with the trend across price quartiles. Units, with their lower entry price, are proving more resilient as buyers focus on affordability. Sydney's median house value is now $1,438,090, compared with $857,872 for units.
For unit owners looking to make the move into a house, this is another positive sign. With house values falling faster than units, the gap between the two has narrowed, which could make now a good time to consider that next step.
While units have held their value better through this downturn, it’s worth keeping the longer term in mind. Over the past 20 years, houses have generally delivered stronger capital growth than units, largely because more of their value sits in the land, which appreciates over time while buildings depreciate. That said, a well-located unit in an area where land is scarce can still outperform a poorly located house, so the right choice depends on your goals and strategy rather than the property type alone.
Homes are taking longer to sell in Sydney
Sydney homes are spending much longer on the market. Over the three months to September 2026, the median days on market was 46 days, up from 29 days a year earlier. That's an extra 17 days, or a 59% increase, in the typical time it takes to sell.
Vendors are also having to negotiate harder. The median vendor discount in Sydney widened to 4.8%, up from 3.0% a year earlier, the equal largest of any capital.
Sales volumes have fallen too, down 9.8% in the 12 months to September 2026. That's a steeper fall than both the combined capitals (down 9.1%) and the national market (down 6.4%).
Listings: more choice for Sydney buyers
Sydney buyers have significantly more choice than they did a year ago. Total listings rose to 42,699 in October 2026, up 15.2% on October 2025.
That increase isn't coming from new sellers. New listings (those listed for less than 30 days) fell 18.9% over the year, a much sharper drop than the national fall of 1.2%. Instead, stock is building up as properties take longer to sell. Older listings, meaning properties on the market for more than 180 days, were up 41.6%, well above the national increase of 16.2%.
Auction results tell a similar story. Sydney's clearance rate has trended down from around 50% since the first rate rise in February. It hit a low of 25.6% for the week ending 25 October and came in at 28.1% for the week ending 1 November.
In other words, fewer homeowners are choosing to sell, but those already on the market are struggling to find buyers. Combined with homes taking an extra 17 days to sell, larger vendor discounts and falling sales volumes, it all points to one thing: conditions are currently firmly in buyers' favour.
For buyers, this means more properties to choose from, less competition and more room to negotiate. For sellers, it reinforces the importance of pricing realistically and presenting your home well from day one, so it stands out from the growing pool of properties already on the market.
Buyer sentiment: NSW buyers remain cautious
Housing sentiment weakened across most of the country in November, and New South Wales was no exception.
The Westpac-Melbourne Institute "time to buy a dwelling" index sits at 91 in NSW. A reading below 100 means more people think it's a bad time to buy than a good time, so NSW buyers remain cautious. By comparison, Victoria sits at 101, the only state where slightly more people think it's a good time to buy.
Price expectations also fell sharply in NSW, down 13% to 103. That's still marginally positive, meaning slightly more people expect prices to rise than fall over the next year, but well below Victoria (113). Queensland saw an even steeper fall, to 86.
For Sydney, the message is mixed. Buyers are wary of committing in the current environment, but with expectations still just above neutral, many believe the market will recover in time. That combination of caution and longer-term confidence often creates opportunities for buyers who are ready to act.
Rents and yields
Rents are still rising in Sydney, but more slowly than in most capitals. Sydney rents grew 4.4% in the 12 months to September, below the national increase of 5.5%, with only Canberra recording slower growth.
Sydney also has the lowest rental yields of any capital city, at 3.5%. Breaking it down further, houses are yielding 3.1%, while units are delivering a stronger 4.5%.
Sydney remains Australia's most expensive capital city, with a median house value of $1,438,090. That's $326,560 more than Brisbane, the next most expensive capital. For units, however, the gap is much smaller: Sydney's median unit value of $857,872 is just $46,788 above Brisbane's.
For investors, Sydney units stand out. They offer higher yields than houses, a much lower entry price and have held their value better through the downturn. With values still falling and stock building up, investors who do their research now may be well placed when the market eventually turns.
Want more expert analysis on the Sydney property market?
Tune in to our latest market update on The Property Trio podcast, where we unpack this month’s numbers, share our take on where the Sydney market is heading and cover plenty more along the way.
And if you're nterested in what’s happening beyond Melbourne, our Property Market Update covers the latest data and trends across every state and territory.
How does this affect your plans?
Whether you’re buying, selling, investing or refinancing in Sydney, the market is shifting and the right strategy matters more than ever. If you’d like to talk through your next steps, property plans or mortgage strategy, get in touch with us today.
Our team of experts is here to guide you through the complexities of the Sydney market and help you achieve your property goals.
