Hot Sydney suburbs to watch in 2025

Sydney is Australia's real estate standard bearer, boasting Australia's most expensive property market.

Sydney property prices grew by 3.3% during 2024 (as at December 2024). Though, home values fell in the last quarter of the year, prompting Core Logic's research director Tim Lawless to declare "August likely marked the peak of the cycle".

Sydney's median dwelling value continues to tower over that of every other capital city in Australia at $1,196,809, well above Brisbane in second-place with a median property value of $886,540.

But Sydney property is expected to cool in 2025. SQM Research forecasts prices could fall by up to 5%, depending on wider economic factors.

CoreLogic head of research Eliza Owen agrees Sydney could be pulled into a mild downturn amid affordability constraints and limited borrowing capacity - symptoms of currently high interest rate settings.

Indeed, affordability continues to be the main theme of the Sydney market, with price growth ticking upwards in more affordable sections of the market and home values stagnating or falling in higher-end suburbs.

But all bets may be off if a long-anticipated cash rate cut occurs in 2025.

Shore Financial CEO Theo Chambers flagged the "reasonable chance" of an easing in the cash rate in the first half of 2025, which should lead to improved loan serviceability and higher borrowing capacities, in turn bolstering demand.

"That is likely to put further upward pressure on prices, although this will be unevenly distributed across suburbs," he said.

Indeed, the Sydney market is a tale of many suburbs. We've consulted a wide selection of property experts to identify the suburbs they believe are poised for a robust 2025.

Median price and rent data from realestate.com.au as at December 2024.

Dulwich Hill, 2203

• Median price: $2,290,000 for houses, $930,000 for units

• Median rent: $900 pw for houses, $630 pw for units

This inner-western suburb was earmarked by not one but two top Sydney property experts, putting it at the top of the list.

Just 7.5 kilometres from the CBD, Dulwich Hill has the convenience of light rail connection and is currently undergoing an upgrade to its Sydney Metro train station.

As Australian property identity John McGrath said in his 2025 Report, when "the light rail makes it a short tram ride in the CBD, you can no longer resist the attractiveness of these little sleeper villages".

The suburb has undergone considerable gentrification - or gets "groovier and groovier" as Mr McGrath puts it - in recent years, with a proliferation of coffee shops, cafes, casual eateries, and restaurants.

Aus Property Professionals founder and winner of the 2024 Real Estate Institute of NSW buyers' agent of the year, Lloyd Edge, is also throwing his weight behind Dulwich Hill.

"In Dulwich Hill, you will find family orientated streets and a little more room in your property than neighbouring suburbs," Mr Edge told Savings.com.au.

"Despite some areas in Sydney showing sluggish growth in 2024, Dulwich Hill has reported 17.6% growth over 12 months."

Dulwich Hill is home to notable Federation and interwar-era houses as well as what looks set to be a growing stock of apartments, having been earmarked by the NSW government for increased medium-density development.

Rockdale, 2216

• Median price: $1,680,000 for houses, $700,000 for units

• Median rent: $800 pw for houses, $650 pw for units

Mr Edge also likes the southern suburb of Rockdale, located 13km south of the Sydney CBD and approximately a 20-minute commute via public transport. It's also close to Sydney Airport and a beach.

"Rockdale offers many conveniences including a main railway station, cafes, and a shopping centre with the added bonus of being only a five-minute drive away from Brighton-Le-Sands beach and the suburb's array of restaurants and eateries," he said.

"It has mix of apartments and houses as well as new developments so there is usually something to suit everyone."

The suburb is home to Rockdale Bicentennial Park which features a bike track, sports grounds, and recreation facilities.

Rockdale has seen a 12-month price growth of 12.87%, making it "a gem for investment", according to Mr Edge.

Glebe, 2037

• Median price: $2,500,000 for houses, $925,000 for units

• Median rent: $1,000 pw for houses, $690 pw for units

The annual McGrath report identifies the once-working class suburb on the fringe of Sydney's CBD as seeming "to have slipped under the radar". And he can't fathom why.

"Glebe is a five-minute stroll to the city, Sydney University, UTS, Darling Harbour and Broadway Retail," he said. "What more do you need to realise this sleeping giant is about to awaken?"

Glebe is located 1.9 kilometres south-west of the Sydney CBD and features a shopping strip known for its specialty retailers, cafes, and variety of ethnic eateries.

The suburb's Broadway Shopping Centre was built on the site of a former department story and features major retailers, specialty stores, a food court, and a 12-screen cinema complex.

Bangor, 2234

• Median price: $1,605,000 for houses, $1,182,000 for units

• Media rent: $950 pw for houses, no data for units

Situated in Sydney's Sutherland region, Bangor has been nominated as a 2025 Australian 'Suburb to Watch' by national quantity surveying company MCG Quantity Surveyors.

It analyses current data and makes its selections based on affordability, proximity to capital city CBDs, and favourable market conditions.

According to MCG's managing director Mike Mortlock, Bangor has made the cut because it's poised for further growth heading into 2025.

"The median listing price has seen an uptick to $1,518,000 from $1,550,000 just three months prior, suggesting a positive market trajectory," Mr Mortlock said.

The suburb, located 23 kilometres from the Sydney CBD, has already seen almost 15% growth in the median house price over the past 12 months and an even greater jump of 21.9% in the median price of units.

MCG data shows it's predominantly made up of families (85%) and detached houses (88%), with unit data a little unreliable owing to relative scarcity.

Bangor is known for its leafy streets, quality schools, and access to natural attractions such as the Woronora River and surrounding bush areas.

"Its strong community vibe and excellent amenities make it a standout choice for families and professionals alike," Mr Mortlock said.

Castle Hill, 2154

• Median price: $2,400,000 for houses, $950,005 for units

• Median rent: $900 pw for houses, $730 pw for units

Castle Hill, in the heart of Sydney's rapidly growing Hills District, has been nominated as one of realestate.com.au's national 'Hot 100 suburbs for 2025' by Bianca Denham, head of performance and recognition at Ray White Group.

Ms Denham likes that Castle Hill is at the centre of a wider area and offers a blend of suburban tranquillity and urban convenience.

Castle Hill is located 34 kilometres north-west of the Sydney CBD and around 10 kilometres north of Parramatta.

In recent years, it's benefited from the North West & Bankstown line of the Metro rapid transit system which connects it to the Syndey CBD in 33 minutes.

Its shopping centre is also set to undergo major redevelopment with the precinct to include residential towers, a new hotel, and a commercial office tower - the first of its type to be built in the area.

Castle Hill's median house price has risen more than 10% in the past 12 months, although its median unit value has fallen by about the same amount.

Ms Denham said its rising property values make it an appealing investment opportunity while a strong sense of community and spacious homes make it ideal for families and professionals seeking a balance of lifestyle and the potential for long-term growth.

Enmore, 2042

• Median price: $1,872,500 for houses, $875,000 for units

• Median rent: $950 pw for houses, $530 pw for units

The inner-western suburb of Enmore has been singled out as a "gem" by Adelaide University property market academic and investment consultant Peter Koulizos.

He believes Enmore has long been undervalued, likely because it's overshadowed by its larger and better-known neighbours Stanmore (median house price $2,225,000) and Newtown ($1,800,000).

The suburb's median house price has remained relatively unchanged during 2024 while the median unit price has jumped 17%.

Enmore is located around five kilometres from the Sydney CBD and features many Victorian and Federation-era buildings, both in its commercial and residential areas.

Such period homes provide great opportunity to add value through renovation and upgrading, according to Mr Koulizos.

The suburb is best-known for its Art Deco Enmore Theatre, the longest-running live theatre venue in Sydney, hosting plays, concerts, comedy, and other performances.

Enmore Road runs off the more famous King Street, Newtown. Both suburbs are home to a vibrant and eclectic mix of subcultures, as well as professionals, students, artists, and independent thinkers.

Eastlakes, 2018

• Median price: $2,009,000 for houses, $710,000 for units

• Median rent: $1,000 pw for houses, $650 pw for units

The inner-southeastern suburb, positioned between Sydney Airport and the CBD, has been earmarked as one for young families to investigate

Mr McGrath likes Eastlake's handy position, around eight kilometres from the CBD and less than four from the airport, and its "vibrant mix of multicultural groups resembling Paddington and Surry Hills in the '80s".

Around 20% of Eastlake's housing stock is public housing. It also has a concentration of medium-density affordable units and apartments, as well as a selection of one-storey standalone houses.

Mr McGrath sees that as a plus.

"It offers a mix of both affordable apartments and cottages, allowing upgraders the opportunity to buy a house for under $2 million," Mr McGrath said. "Why wouldn't you?"

One downside of the suburb is airport noise. It's likely one of the reasons Eastlakes is more affordable than other nearby eastern suburbs including neighbouring Pagewood (median house price $2,710,000) and Kingsford ($2,670,000).

Eastlakes is home to several parks and golf courses as well as a relatively newly developed shopping centre and apartment complex.

The suburb has also defied the general slowdown in Sydney property prices, with Eastlake's median house price up 6.7% over past 12 months and the median unit price gaining 9.4%.

Prestons, 2170

• Median price: $1,120,000 for houses, $793,000 for units

• Median rent: $740 pw for houses, $635 pw for units

Located around 37 kilometres southwest of the Sydney CBD in the Liverpool area, Adviseable property buyer Kate Hill has nominated Prestons as one of realestate.com.au's 'Hot 100 Suburbs' for 2025.

Ms Hill said the largely industrial suburb offers buyers the chance to be part of a long-term growth market and was already seeing direct benefit from major infrastructure investment.

Considerable work is underway in the area as part of the development of Western Sydney Airport, built to service 10 million passengers a year and due to open in 2026.

Ms Hill said the development has already created thousands of jobs and made a substantial contribution to the local economy.

Prestons is also situated on a key road junction where the M5 South Western Motorway from the city meets the Hume Motorway to Canberra and the Westlink M7 heading north.

Prestons' property prices have increased as other sections of the Sydney market have slowed or dropped in value.

Over the past 12 months, Prestons' median house price has grown 13.1% while its median unit value is up 12.9%.

Ms Hill said affordability remains the key issue in Sydney's residential property market and the suburb is attracting buyers because of its abundance of cheaper units and houses.

Springwood, 2777

• Median price: $995,000 for houses, $675,000 for units

• Median rent: $650 pw for houses, $455 pw for units

This outer-west, Blue Mountains town, 62 kilometres from the Sydney CBD, made the Savings.com.au 'Top Sydney suburbs' list last year and is one of only three NSW locations in MCG's 'Suburbs to Watch' for 2025.

It seems last year's nomination was on the money. Springwood's median house price gained 14% over the past 12 months and its median unit price rose 7.1%.

Even so, Mr Mortlock said Springwood still offers good affordability and remains within reach for many buyers.

He notes the median house price has climbed from $950,000 over the past three months while housing stock on the market has decreased, indicating steady growth.

"[Springwood has] well-established infrastructure, quality schools, and community amenities," Mr Mortlock said. "It offers the tranquillity of the Blue Mountains while maintaining reasonable access to city conveniences."

Springwood is known for its vibrant arts scene, local markets, and access to national parks, walking trails, and wilderness areas.

It's connected to Sydney CBD by train and has a generally milder climate than towns higher up in the Blue Mountains.

What the robots say

Mortgage broker Shore Financial uses machine-learning analysis for its Shore Financial State of Sydney report, dividing suburbs into five quintiles based on their current median asking price for houses. Data is crunched to get the top five listings in each.

According to CEO Theo Chambers, the 25 suburbs identified tend to have low listing volumes, inventory levels, and lower numbers of days on the market, marking them as 'hot' suburbs.

One of the key metrics is forecast median house price growth over the next six months. Here are the top suburbs for each quintile, from lowest to highest end of the market, all forecast to achieve more than 5% growth to May 2025:

• Buxton, 2571 (1st quintile - 'Heartland Sydney')

Situated 93 kilometres south-west of the Sydney CBD, Buxton is a rare Greater Sydney suburb where the median house price is below $1 million. More than 99% of the suburb's housing stock is made up of freestanding houses.

• Winston Hills, 2153 (2nd quintile - 'Suburban Sydney')

With a median house price of $1,616,000, Winston Hills is 28 kilometres west of the city centre and has seen a 9% growth in house prices over the past 12 months.

• Brighton-Le-Sands, 2216 (3rd quintile - 'Rising Sydney')

The beachside suburb has a median house price of around $2 million, having jumped 14% in the past year. It's located 13 kilometres south of the CBD with a greater mix of houses and units. Only 29.8% of Brighton-Le-Sands' housing stock is freestanding houses.

• Galston, 2159 (4th quintile - 'Professional Sydney')

The semi-rural suburb of Galston is 36 kilometres north-west of the Sydney CBD with a median house price of $1,930,000. There are a number of recently built townhouses in the suburb as well as homes on five-acre blocks.

• East Lindfield, 2070 (5th quintile - 'Affluent Sydney')

With a median house price of $4,160,000, East Lindfield on Sydney's Upper North Shore has seen a 9% jump in the median house price over the past 12 months. Around 88% of the suburb's housing stock is freestanding houses.

Mr Chambers said one theme that was consistent across most suburbs identified in its analysis was that they're becoming increasingly beyond the reach of first home buyers wanting to buy a freestanding house.

"Sydney first home buyers are increasingly purchasing houses in outlying suburbs, or opting for more affordable units, or giving up on Sydney and rentvesting into cheaper markets," he said.

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