Sydney Property Market Update Q1 2025: Pyrmont, CBD & Barangaroo Insights

Expert Commentary on Pyrmont, Sydney CBD and Barangaroo

As the Sydney property market moves through the first half of 2025, buyers, sellers, and investors are turning their attention to the high-performing pockets of Pyrmont, the Sydney CBD, and Barangaroo. These prestigious inner-city suburbs are proving to be some of the most resilient, lifestyle-driven, and high-yielding areas in the country.

From stabilised interest rates to new policy signals in the March Federal Budget, the broader macroeconomic landscape is providing much-needed confidence for informed decision-making in these premium precincts.

Pyrmont: Consistent Growth and Investor Confidence

Pyrmont continues to benefit from long-term demand due to its proximity to the city, strong transport links, and village atmosphere. The suburb's population now sits at around 12,800 — a 10.2% increase over five years — with the dominant demographic being professionals aged 30–39.

The median unit value is $1.175 million, while houses have a median value of $1.77 million. Apartments sit within a broad range, with the top quartile surpassing $1.8 million. This price diversity caters to both first-time investors and seasoned buyers seeking premium stock. Notably, the suburb boasts one of the longest average ownership periods in the city at 14 years, suggesting long-term satisfaction and capital stability.

Rental demand remains robust, supported by the area’s appeal to young professionals and executives. Gross rental yields in Pyrmont remain competitive, especially for one- and two-bedroom apartments in modern complexes.

Sydney CBD: High Density, High Demand

The city centre has long been the heartbeat of Sydney, and in 2025, it continues to draw strong residential interest. With a current population of 17,300 — up 20.6% over five years — Sydney CBD has established itself as a vibrant and evolving community. The median unit price sits just under $1 million, with high-quality properties in desirable buildings fetching upwards of $1.6 million.

This area is home to a predominantly professional workforce, many of whom live in couple or single-person households. Buyers value access to transport, employment hubs, and world-class dining and retail. The average length of ownership is 13 years, underlining long-term appeal and strong equity retention.

For investors, the CBD rental market remains tightly held, with one-bedroom apartments commanding over $1,000 per week. Premium amenities and building services are crucial in attracting strong tenancy profiles.

Barangaroo: Prestige Property on Sydney’s Frontline

Barangaroo is one of the most exclusive residential precincts in Australia. With a small but growing population and a strong premium apartment market, it represents a unique opportunity for ultra-high-end buyers and investors.

The suburb has experienced a staggering 74.5% population increase over the past five years, albeit from a low base. With a median unit price of $4.83 million and upper quartile figures pushing beyond $7.25 million, Barangaroo is Sydney’s answer to waterfront luxury.

The typical buyer here is a high-net-worth individual seeking absolute quality, views, and walkability. While the stock is limited, the quality is unrivalled, and rental prices reflect the exclusivity — with multi-bedroom apartments asking upwards of $2,000 per week and penthouses reaching the upper echelons of the Sydney market.

Interest Rate Pause: Market Stability Returns

After a year of aggressive tightening, the Reserve Bank of Australia held the cash rate at 4.35% in April 2025. This pause has restored buyer confidence and stabilised borrowing capacity, particularly benefiting mid-to-upper market buyers in Pyrmont, Sydney CBD, and Barangaroo.

With inflation showing signs of moderation, many analysts now predict this may be the peak in the interest rate cycle, which is encouraging buyers to re-enter the market — especially those seeking long-term investments with strong rental demand.

The Federal Budget: Subtle but Supportive

While the 2025-26 Federal Budget didn’t introduce sweeping reforms to housing taxation, it did provide several signals for the real estate sector.

Of note is the newly introduced ban on foreign investment in established residential dwellings, a move designed to prioritise housing supply for domestic buyers. While foreign investors may still purchase new developments under specific conditions, this restriction is expected to have some impact on the high-end resale market — particularly in blue-chip suburbs like Pyrmont, the Sydney CBD, and Barangaroo - however this portion of the buyer pool is quite small.

For vendors, it's a timely reminder to market properties strategically to domestic and expat buyers who remain highly active in the luxury and investor segments.

Importantly, other investor-friendly policies such as negative gearing and capital gains tax concessions remain unchanged, offering stability and predictability to those with existing portfolios or plans to enter the market.

Final Thoughts: Should You Buy, Sell or Invest Now?

Pyrmont, the Sydney CBD, and Barangaroo are three distinct yet complementary markets offering strong fundamentals. Whether you’re an investor seeking high yields, a downsizer looking for lifestyle, or a seller wanting to maximise return, the current climate presents a moment of opportunity.

Buyers should act with confidence — particularly where long-term capital growth and rental performance align. Sellers should take advantage of limited stock levels and motivated buyers. And investors should leverage this moment of policy and interest rate stability to secure premium, income-generating assets.

Looking to buy, sell or invest in Pyrmont, Sydney CBD or Barangaroo?

Reach out to our team today for a tailored strategy that aligns with your goals.