NSW Property Market: Sydney Pushes Toward $2 Million Median
Sydney's property market continues to defy affordability concerns, with the median house price now well above $1.7 million and forecast to approach $2 million in 2026. Despite being one of the world's least affordable markets, demand remains strong.
Where Sydney Is Heading
Domain forecasts Sydney house prices to rise 7% in 2026, the strongest growth of any capital city. The median could reach $1.92 million by year end—an eye-watering figure that puts home ownership increasingly out of reach for many.
Affordable Pockets Still Exist
For those priced out of inner Sydney, opportunities remain:
- South-West Corridor: Liverpool and Leppington offer entry points under $900,000
- Canterbury-Bankstown: Lakemba, Canterbury, and Campsie near the Inner West
- Western Sydney: Blacktown and surrounding areas for first home buyers
First Home Buyer Support in NSW
NSW offers significant support:
- $10,000 First Home Owner Grant for new homes under $750,000
- Full stamp duty exemption for homes under $800,000
- Stamp duty concession for homes $800,000 to $1 million
Note: The First Home Buyer Choice (annual land tax option) has been phased out.
The Expanded 5% Deposit Scheme
The First Home Guarantee now allows purchases up to $1.5 million with a 5% deposit. Analysis suggests this could cut deposit-saving times from over 10 years to around 3 years for Sydney buyers—a game-changer for those struggling to save.
Investment in Regional NSW
Regional NSW continues to attract buyers seeking lifestyle and value. The Hunter, Central Coast, and Illawarra regions offer proximity to Sydney with significantly lower entry prices.