This month, Sydney’s property market has shown renewed energy as interest rate cuts and price recovery fuel buyer confidence. Forecasts predict strong growth in Sydney and Melbourne, with auction clearance rates hitting their highest point in a year. Units are now outpacing houses in value growth across capital cities, driven by affordability and lifestyle shifts. However, persistent issues around housing design and affordability continue to affect owners and renters alike. From energy inefficiency in existing homes to increasing demand for sustainable features, the landscape is evolving rapidly. Below, we summarise ten key articles that capture the mood and momentum of the market.

When Houses Earn More Than Their Owners

https://www.domain.com.au/news/the-locations-where-houses-make-more-money-than-their-owners-1384830/

In Australia’s diverging property market, Perth has outshone the rest of the country, with house prices increasing by $95,022 in the year to April 2025 — surpassing the average local salary of $81,568. By contrast, in Sydney and Melbourne, home values rose more modestly ($52,006 and $13,805 respectively), falling short of average annual incomes. This marks a reversal from earlier booms, where east coast homes — especially in affluent suburbs — often outpaced wages. Experts attribute Perth’s boom to supply constraints and post-mining boom recovery, but warn affordability challenges may soon catch up with it.

The Rocks

Construction at Nancy-Bird Walton International Airport, Badgery’s Creek, circa 2023

Energy Efficiency Becomes a Key Value Driver in Property Sales

https://www.domain.com.au/news/the-underrated-fast-track-to-boost-your-propertys-value-by-197000-1385022

Sustainability has officially gone mainstream in Australian property, with energy-efficient features adding up to $197,000 in value to homes, according to Domain’s 2025 Sustainability in Property Report. Melbourne leads the charge with the highest value uplift, while Sydney homes with green features enjoy a $180,500 premium. Features such as solar panels, heat pumps and insulation are now expected by many buyers, driven by cost-of-living concerns and environmental awareness. Retrofitting older homes is also on the rise, with buyers valuing both the financial and health benefits.

Units Overtake Houses in Capital City Price Growth

https://www.realestate.com.au/news/australias-property-shift-units-now-outperforming-houses/

A major report by Hotspotting and Nuestar has revealed that unit prices are now rising faster than house prices in most of Australia’s capital cities, signalling a shift in long-held property norms. Driven by affordability concerns, rental yields, and improved design quality, 71.4% of Sydney’s unit markets outperformed houses over the past year. Brisbane and Perth led the trend, while Melbourne remains an outlier, with buyer preference still tilted toward houses and villa units. Experts note that downsizers and investors are driving demand, though buyer caution remains around poor-quality stock.

Rental Market Stagnates as Reforms Threaten to Worsen Conditions

https://therealestateconversation.com.au/news/2025/06/11/rental-market-holding-pattern-bracing-impact-rental-reforms-reinsw/1749633765

Sydney’s rental market remains under intense pressure, with May 2025 vacancy rates holding at just 1.7%, according to the latest REINSW data. While a slight uptick was recorded, the broader trend of sub-2% availability continues, highlighting a deepening crisis for renters. Tight conditions persist across both metropolitan and regional areas, including the Illawarra, Northern Rivers and Riverina. REINSW CEO Tim McKibbin warned that newly introduced rental reforms are prompting landlords to consider exiting the market, potentially reducing already limited supply.

Architect Slashes Energy Bills with Clever Home Upgrades

https://www.domain.com.au/news/imogens-house-shouts-her-a-free-cup-of-coffee-every-day-1389831/

Architect Imogen Pullar has transformed her Melbourne home into a model of sustainable living, cutting her energy bills by over 52 per cent—equivalent to saving $7.30 a day, or one takeaway coffee. Although the house already featured efficient design elements when purchased, Pullar made additional upgrades including switching from gas to induction cooking, installing a reverse-cycle air-conditioner, and improving insulation and draft sealing. These changes enhanced both comfort and energy efficiency, aligning with growing buyer demand for homes that offer cost-saving sustainability.

Poorly Designed Homes Leave Aussies Cold and Paying the Price

https://www.realestate.com.au/news/icy-homes-why-most-aussies-are-using-their-heaters-the-wrong-way/

Despite widespread use of heaters, many Australians remain cold in winter due to longstanding design flaws in residential housing. Experts from RMIT University explain that poor insulation, open-plan layouts, and subpar energy standards mean warmth escapes rapidly, making heating inefficient and expensive. Newer homes also struggle, as regulatory assumptions often fail to reflect actual usage patterns. Compared to Europe and North America, Australian homes are significantly less energy-efficient. The article urges greater awareness, retrofitting support, and improved building standards.

Main Road Homes Offer Big Discounts – With Caveats

https://www.domain.com.au/news/are-houses-on-main-roads-cheaper-1381893

Buying on a main road can unlock significant savings—up to 40% cheaper than similar homes on nearby side streets—making it an appealing option for budget-conscious buyers. Properties on roads like Bell Street in Melbourne or Victoria Road in Sydney often deliver value, albeit with lifestyle trade-offs such as noise and traffic. Experts advise buyers to look for homes with rear access, good soundproofing, and favourable floorplans to offset the downsides. While capital growth is typically slower, these homes still appreciate in value.

Auction Market Rebounds with Best Clearance Rate Since July 2024

https://therealestateconversation.com.au/news/2025/06/23/highest-preliminary-clearance-rate-since-july-last-year-cotality/1750643824

Australia’s capital city auction market has recorded its strongest preliminary clearance rate in nearly a year, with 73.9% of homes selling last week. This is a sharp recovery from the 63.8% figure seen over the King’s Birthday weekend. Sydney achieved a clearance rate of 73.5%, its highest since February 2025, while Melbourne reached 76.6%—the city’s best result in over a year. Adelaide led the capitals at 77.5%. Though auction volumes dipped slightly to 2040, confidence appears to be returning, particularly following interest rate cuts.

Sydney and Melbourne Set to Lead Australia’s Property Price Surge

https://www.domain.com.au/news/sydney-and-melbourne-house-price-predictions-1391365/

House prices in Sydney and Melbourne are forecast to hit new records by mid-2026, with Sydney’s median expected to climb to $1.83 million and Melbourne’s to $1.11 million, according to Domain’s FY26 Forecast Report. This marks a return to dominance for the two largest capitals after years of affordability-driven growth in cities like Adelaide, Perth, and Brisbane. The predicted rise—7% in Sydney and 6% in Melbourne—is attributed to falling interest rates, rising clearance rates, and renewed buyer confidence.

Seven Reasons Australian Homes Are So Cold in Winter

https://www.domain.com.au/living/why-your-house-is-freezing-in-winter-and-how-to-warm-it-up-20180612

Despite relatively mild winters, Australian homes are often bitterly cold due to poor design and construction standards. Most were built with hot summers in mind, not winter warmth, leaving many homes draughty, under-insulated, and thermally inefficient. Air leaks, single-glazed windows, and bare floors further exacerbate heat loss, while older homes lack passive solar design to maximise winter sun. Rental properties are especially vulnerable, with limited legal obligations on landlords to provide effective heating outside Victoria.

Conclusion

The Sydney property market in June 2025 reflects a complex interplay of confidence, affordability, and evolving buyer values. From booming unit markets to the increasing impact of sustainability and design on property decisions, this month’s stories underscore the diverse pressures shaping the market. While growth is expected to continue into 2026, systemic challenges remain—particularly around affordability, energy efficiency, and housing availability. Staying informed and adaptive will be crucial for buyers, sellers, and investors alike.