Sydney Property Market Transforms: New Policies Reshape Real Estate Landscape

The NSW Government's recent amendments to the Environmental Planning and Assessment Act have sent ripples through Sydney's property market, with many buyers and sellers waiting to see how the changes will affect the city's housing supply and prices.

These policy changes matter now because Sydney's property market is already under pressure, with a median house price of around $1.4 million and a tight supply of homes in the inner ring. The Inner West and Northern Beaches continue to command a premium, with areas like Balmain and Manly experiencing high demand and limited stock. The clearance rate for auctions in these areas has been steady, ranging from 65 to 72% in recent weeks.

In specific neighbourhoods like Marrickville and Alexandria, the effects of these policy changes are being closely watched. The City of Sydney Council's plans to increase density and mixed-use development along streets like Victoria Road and Mitchell Road are expected to bring new life to these areas, with organisations like the Urban Development Institute of Australia (UDIA) and the Sydney Business Chamber weighing in on the proposals. Meanwhile, the NSW Government's plans to redevelop the Central to Eveleigh corridor, including the construction of new apartments and commercial spaces near Redfern Station, are set to transform the area.

Market Trends and Data

According to data from CoreLogic, the median house price in Sydney has increased by 3.5% over the past 12 months, with the strongest growth seen in areas like the Eastern Suburbs, where prices have risen by as much as 10%. The NSW Valuer-General's office reports that the total value of residential properties in Sydney has surpassed $1.1 trillion, with the average land value in the city now exceeding $1,200 per square metre. As of June 2026, the rental yield for apartments in the Sydney CBD was around 3.8%, down from 4.2% in June 2025.

As the market continues to evolve, buyers, sellers, and investors will need to stay informed about the latest policy changes and planning decisions. With the NSW Government's commitment to increasing housing supply and affordability, it's likely that we'll see more developments like the proposed redevelopment of the Waterloo Estate, which promises to deliver over 3,000 new homes in the inner city. For those looking to buy or sell, it's essential to work with reputable agents and stay up-to-date on the latest market trends and data to make informed decisions.