The cooling down of Sydney's property market looks to be heading into 2025.

After a multi-year boom in both the house and unit markets across Greater Sydney, heightened interest rates throughout 2024 gave prospective home buyers a reason to sit on their hands.

The year started off positively, so the decline in markets hasn't been extensively felt. Units across Sydney, in fact, rose 1.8 percent over 2024, reaching a new median high of $859,000. Values declined by -0.3 percent in December.

CoreLogic Research Director Tim Lawless noted that the slowdown in Sydney aligns with affordability pressures and higher advertised supply levels.

He said it wasn't a surprise to see the CoreLogic National Home Value Index show a decline for the first time in two years.

“This result represents the housing market catching up with the reality of market dynamics,” Lawless said.

“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher.”

<h2>What happened in Sydney’s off the plan apartment market in 2024?</h2>

Sydney’s off the plan apartment market saw significant activity in 2024, reflecting the shifting dynamics of the housing sector and a focus on key projects reshaping the city’s urban landscape.

It was the new development pipeline that piqued the interest of Urban readers in 2024, as well as new projects launching to the market, which have been few and far between in recent years. Data just released from the ABS showed dwellings approved in New South Wales were 42,109 over the 12 months until November 2024, 34,000 short of meeting the National Housing Accord quota for NSW.

No development application was more popular than JDH Capital's plans for the Sir Stamford Hotel in Circular Quay. JDH, fresh off completing the redevelopment of the iconic Sirius building in The Rocks, filed plans to demolish the 1988-built hotel, which will make way for a striking 150-level glass tower with commercial, retail, and luxury apartments.

The 69 apartments will be spread across 10 residential levels in the new structure. Part of the development of the 1,612 sqm site, which sits in the Macquarie Special Character area defined in the Sydney LEP 2012, will include the restoration of the heritage-listed Health Department Building that dates back to 1896.

Read more:&nbsp;First look exclusive: <a href="https://www.urban.com.au/news/nsw/first-look-exclusive-jdh-capital-plot-183-million-sir-stamford-hotel-redevelopment-on-sydneys-macquarie-street">JDH Capital plot $183 million Sir Stamford Hotel redevelopment on Sydney's Macquarie Street</a>

<img alt="Sir Stamford" data-entity-type="file" data-entity-uuid="623b494a-f8c5-4b59-bf8f-ec28e6cb0895" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-08%20at%209.39.48%E2%80%AFAM_0.png?VersionId=qBPqrLUIcxy7s0limVnw9MygsUqzqqlo" />

There was a similar level of interest in moves by builder-developer giant <a href="https://www.urban.com.au/developers/aland">ALAND</a>, who took over the Macquarie Street, Parramatta site from besieged developer Toplace,&nbsp;

The plans for the site include two 30-level towers with 425 apartments, along with significant communal, retail, and parking spaces.&nbsp;

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/first-look-exclusive-aland-take-over-second-toplace-site-plot-two-30-level-apartment-towers">First look exclusive: ALAND take over second Toplace site, plot two 30-level apartment towers</a>

ALAND has also stepped in to take over the final three buildings in the besieged Castle Hill development by Toplace.

Upon completion, the Skyview development is set to house approximately 2,500 residents across 964 apartments, with 532 units dedicated to build-to-rent.

Still in Castle Hill, a market which has proven strong for several years, custom home builder turned developer Kassis Homes submitted plans for a new suburb-shaping.

<img alt="Kassis" data-entity-type="file" data-entity-uuid="a71c263b-8e3c-4a62-84fc-f67a8b6a5983" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-08%20at%209.50.10%E2%80%AFAM_0.png?VersionId=rUCTL3RZo3zLkFLNv2HdeOxBw3yGUoj2" />

Under their new development arm Reve Group, Sam Kassis and business partner Romio Georges are planning a four-tower development on a sprawling 9,074 sqm site that cost about $80 million to amalgamate.

They're seeking to develop three residential towers, with 264 apartments, and a hotel tower.

"We've been building in the area for three decades, and we're passionate about delivering high-quality residential living to Castle Hill," Sam Kassis told Urban.

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/reve-group-file-for-new-four-tower-development-in-castle-hill">Reve Group file for new four-tower development in Castle Hill</a>

The demand for new and off the plan apartments in <a href="https://www.urban.com.au/developments/north-sydney-nsw">North Sydney</a> has meant readers have been interested in the two new projects set to hit the market in 2025.

Earlier this year Urban revealed the plans by joint venture partners <a href="https://www.urban.com.au/developers/cbus-property">Cbus</a>, <a href="https://www.urban.com.au/developers/galileo-group">Gallileo</a> and Abadeen for East Walker Street 239 apartments across three buildings designed by&nbsp;<a href="https://www.urban.com.au/architects/rothelowman">Rothelowman</a>.&nbsp;

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/first-look-exclusive-cbus-and-galileo-revise-plans-for-new-north-sydney-apartment-development-east-walker-street">First look exclusive: Cbus and Galileo revise plans for new North Sydney apartment development, East Walker Street</a>

East Walker Street will be one of two new apartment developments launching in the popular Walker Street pocket near the newly opened Sydney Metro Victoria Cross Station. Podia and its joint venture partner CASA will launch 71 apartments this year on McLaren Street, across the road from the recently completed AURA by Aqualand.

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/first-look-podia-and-casa-lodge-bates-smart-plans-for-walker-st-north-sydney-mixed-use-tower">First look: Podia and CASA lodge Bates Smart plans for Walker St, North Sydney mixed-use tower</a>

The most indemand projects for new apartments buyers have been in close proximity to the recently expanded Sydney Metro, which opened in August.

The 130 one, two and three-bedroom apartments in <a href="https://www.urban.com.au/new-apartments/elevate-hume-place-crows-nest-25-hume-street-crows-nest-nsw-2065">Elevate Hume Place</a>, which is being developed by <a href="https://www.urban.com.au/developers/thirdi-group">Third.i</a> and Phoenix Property Investors, flew off the shelves. Over half of the apartments which are located directly above the <a href="https://www.urban.com.au/developments/crows-nest-nsw-2065">Crows Nest</a> Metro Station have been snapped up in a matter of months.

Elevate is the first Transit Oriented Development (TOD) to launch. The ToD is a government program which will accelarate planning, and offer different planning controls, around Sydney's extensive transport network.

[smartcode_project:default project_id=142550 project_image_fid=297878]

Similarly strong interest was observed further along the Metro line in Castle Hill which has two metro stops, Hills Showground, and Castle Hill Metro Station.

<a href="https://www.urban.com.au/new-apartments/larool-crescent-castle-hill-2-22-larool-crescent-castle-hill-nsw-2154">Larool Crescent</a>, one of the only new developments to launch to the market in Castle Hill in 2024, is just 850m from the Castle Hill Metro Station. The low-rise project has proven popular among first home buyers who are interested in the one-bed plus study at $650,000 and the two-beds at $925,000. There's also been strong demand from downsizers who are looking at the three and four-bedroom apartments and townhouses, a rarity in the&nbsp;

[smartcode_project:default project_id=135330 project_image_fid=289121]

Larool Crescent is also the only off the plan apartment development on the market in the area with the sought-after Latent Defects Insurance by Resilience Insurance. The policy, which can only be taken out by the developer as opposed to the purchaser, protects owners from any structural defects in the building for 10 years post-completion of the building.

CoreLogic Research Director Tim Lawless noted that the slowdown in Sydney aligns with affordability pressures and higher advertised supply levels

Joel Robinson

City Beat December 2024: Sydney unit market finishes 2024 up overall, but slowdown apparent

It was 1988 the last time the Brisbane unit market saw a growth rate of over 16 per cent in a calendar year.

2024 has just broken that 36-year record, according to data commissioned by property data analytics firm CoreLogic shows. The&nbsp;0.8 per cent gain in unit values in December pushed the annual growth rate of units in the Queensland capital to 16.6 per cent, far outperfoming the unit markets in Sydney and Melbourne.

The unit market in Brisbane is proving to be more resilient than other capital cities, albeit the 0.8 per cent growth in December is down from the highs of around two per cent per month in the middle of the year.

The median apartment value in Brisbane now sits at $680,000, having started the year at $568,000.

Annual growth in the unit market in Brisbane far surpassed houses. Houses in Brisbane rose 10.2 per cent over the year, with values in December growing at half the pace of units (0.4 per cent).

CoreLogic's National Home Value Index saw a decline for the first time in two years. CoreLogic Research Director, Tim Lawless, said the decline in values is no surprise.

“This result represents the housing market catching up with the reality of market dynamics,” Lawless said.

“Growth in housing values has been consistently weakening through the second half of the year, as affordability constraints weighed on buyer demand and advertised supply levels trended higher.”

<h2>What happened in Brisbane’s off the plan apartment market in December?</h2>

December is traditionally a quiet month in the new apartment market. There were some notable movements however, the biggest in&nbsp;<a href="https://www.urban.com.au/developments/south-brisbane-qld" target="">South Brisbane</a> where&nbsp;Heidelberg Materials Australia submitted plans for a multi-tower precinct on a 1.3-hectare site along the riverfront.&nbsp;

The proposal is for three 50-level residential towers with 620 apartments, a food and beverage plaza, and a 5,400 sqm public park.&nbsp;

<img alt="Multi-tower precinct planned for South Brisbane riverfront" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202024-12-23%20at%2012.29.48%E2%80%AFPM.png?VersionId=KDcTWEPBQ4btDYLGCkMi94uoT_uaeu.u" />

This ambitious project reflects the ongoing transformation of the Kurilpa Precinct, where new planning policies encourage greater density and sustainability benchmarks.

Read more:&nbsp;<a href="https://www.urban.com.au/news/qld/multi-tower-precinct-planned-for-south-brisbane-riverfront">Multi-tower precinct planned for South Brisbane riverfront</a>

Developer <a href="https://www.urban.com.au/developers/graya">GRAYA</a> also filed for a new development, another one in&nbsp;<a href="https://www.urban.com.au/developments/new-farm-qld-4005">New Farm</a>&nbsp;where they've recently delivered <a href="https://www.urban.com.au/buildings/chalk-by-graya-228-230-moray-street-new-farm">Chalk</a> and <a href="https://www.urban.com.au/new-apartments/york-new-farm-299-bowen-terrace-new-farm-qld-4005">York</a>.

They've submitted plans for&nbsp;Ivory New Farm, just four apartments at&nbsp;17 Julius Street. The Julius Street site spans 688 sqm and has 32-metre frontage to the river. It was bought by the Gray family for $8.5 million in late 2022&nbsp;from developer Tom Dooley, who had approved plans for a luxury four-level home.

It was reported that a home at that scale, on that rare of a site, would be worth around $20 million. A mid-1990s home sits on the block currently.

&nbsp;

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<img alt="First look: GRAYA files plans for Ivory New Farm apartments" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202024-12-11%20at%201.46.45%E2%80%AFPM.png?VersionId=55h24WR43SLDbAokm7Fq2LaoiLc15QVu" />

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Popular Brisbane developer&nbsp;<a href="https://www.urban.com.au/developers/mosaic-property-group" target="">Mosaic Property Group</a> achieved a landmark pre-sales result at <a href="https://www.urban.com.au/new-apartments/the-bedford-by-mosaic-16-30-prospect-street-kangaroo-point">The Bedford</a>&nbsp;in <a href="https://www.urban.com.au/developments/kangaroo-point-qld-4169">Kangaroo Point</a>, securing $210 million in sales within two weeks.&nbsp;

Positioned on a long-vacant site, The Bedford will deliver 128 apartments and the area’s first full-service supermarket, addressing a critical gap in local amenities.&nbsp;Mosaic’s in-house construction arm is set to commence building in 2025.

Read more:&nbsp;<a href="https://www.urban.com.au/news/qld/mosaic-secure-210m-in-pre-sales-at-the-bedford-by-mosaic-in-kangaroo-point">Mosaic secure $210m in pre-sales at The Bedford by Mosaic in Kangaroo Point</a>

The median apartment value in Brisbane now sits at $680,000, having started the year at $568,000

City Beat December 2024: Brisbane unit market surges to highest annual growth since 1988

Australia’s growing ageing population will underpin the opportunity for a significant housing response, with the possibility of shaping future demand and dwelling requirements across the nation.&nbsp;

Based upon ABS population projections across Greater Sydney, Greater Melbourne, Greater Brisbane and the ACT, the population aged 55+ will increase by 4.5 million people by 2071, highlighting the ongoing requirement for new housing solutions to be delivered across the market to cater towards both this demographic and others impacted by their emergence. This population cohort (55+ years) currently represents around 1 in 4 people and is anticipated to shift to around 1 in 2.5 people by 2071 across each of the capital city markets above. &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; 
Through the medium term, Greater Melbourne is set to see the largest nominal increase of people aged 55-74 years old, followed by Greater Sydney and South-East Queensland, making it a prime location for right-sizers, however, the growth across each will support strong right sizing opportunities in each respective market.

“The right-sizer cohort is increasingly reflecting a blend of the established “Baby Boomers” and emerging “Generation X” that are ageing into this cohort,"&nbsp;Managing Director of Residential at Colliers, Diana Sarcasmo, said.

"With the recognition of changing expectations and aspirations across the generations, housing choice and requirements will need to be a dynamic consideration for the future. This increase in population will underpin the critical decisions of property developers and policymakers moving forward, as they need to cater for the ‘right-sizer’ cohort.”

As part of efforts to address Australia’s housing supply crisis, many older homeowners are opting to move out of large, underutilized homes into apartments that better suit their lifestyle needs. This trend frees up larger houses for families, making better use of existing housing stock and creating new opportunities for those seeking more space.

“While right-sizing is not a standalone solution, it highlights how individual choices can contribute to alleviating housing pressures. Combined with broader initiatives like increased construction and urban planning, this movement represents a small but meaningful step towards more sustainable housing solutions in Australia,” Sarcasmo added.

As of 2021, the number of detached homes owned outright by households over 55 in capital city markets totals 855,260, according to the ABS. In comparison, the total of current occupied apartment stock throughout the market is 939,763. This highlights the potential impact that downsizing detached homeowners may have on apartment demand, especially as the ageing population continues to grow).

Rightsizers have highlighted a reduction in dwelling size, decluttering, more manageable internal and external spaces as well as potential financial benefits being prime motivators for moving. &nbsp;Many of these benefits can be facilitated through well-designed apartment options, with right-sizers able to use funds from the sale of a detached home to support their lifestyle into retirement.&nbsp;

While historically there has been a higher representation across two-bedroom options occupied within apartments owned outright by these cohorts, it is expected this new trend will support an increasing push and opportunity for three-bedroom options, from this right-sizer cohort.

“The increasing representation of couples without children residing within apartments has the potential to support a greater demand for three-bedroom options. This trend has been observed across recent movers into apartments as well as detached houses. Three bedrooms offer increasing space for a larger ageing household with the flexibility to repurpose rooms to align with right-sizer’s lifestyles as they age,” Ms Sarcasmo said.

Historically, apartment stock has had a greater focus on one- and two-bedroom options, as apartments are increasingly required to support more permanent and diverse households. It is anticipated that three-bedroom stock will increasingly reflect the demands of these households in the future.

“To date, there has been a focus on smaller scale projects occupied by right-sizer and retiree households, however, they have also demonstrated acceptance of a diversity of project types (including medium and higher density). Developers should increasingly have these occupiers in mind when considering their project designs and product compositions with consideration for the significance of this demographic shift,” Ms Sarcasmo said.

Capital cities across the east coast will need to adapt to the surge of ‘right-sizers’, with innovative solutions required to meet growing demand.

Ageing population to drive downsizing trend and force major rethink of Australia’s housing response: Colliers

Local developer CS Collective is seeking to deliver a collection of just eight luxury apartments in Burleigh Heads.

They've had international architecture firm&nbsp;<a href="https://www.urban.com.au/architects/plus-architecture">Plus Architecture</a>&nbsp;to design Lantern Burleigh, with the triangular 834 sqm peninsula site at&nbsp;13 West Street&nbsp;also set to home a curated retail precinct&nbsp;anchored by a subterranean bathhouse that draws inspiration from ancient wellness traditions.

CS Collective Director Luke Carter said the vision was to create an iconic landmark that resonates with the local community.

"This isn't just about providing new homes – it's about delivering a destination that becomes a defining feature of Burleigh's evolving skyline while maintaining the area's cherished coastal character," Carter said.

Plus Architecture Principal Chrisney Formosa said the unusual triangular nature of the site allowed them to create something truly special for <a href="https://www.urban.com.au/developments/burleigh-heads-qld-4220">Burleigh Heads</a>.

"We've conceived the building as a lighthouse for the area – visible on approach and offering expansive views across one of Australia's most beautiful beaches. The monochromatic palette allows the sculptural nature of the development to be the hero, with an undercurrent of textural and tonal changes that reference the golden sands of Burleigh."&nbsp;

<img alt="Lantern Burleigh" data-entity-type="file" data-entity-uuid="61c53007-6a85-4779-b8d6-5c5477a6798a" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-01-08%20at%2010.33.48%E2%80%AFAM.png?VersionId=4NKN01PvfCv2tMKiOg7YoHt072wmjBJr" />

&nbsp;

Each residence has been conceived as an individual sub-penthouse, featuring double-height spaces that capture sweeping ocean views from every level. The design's distinctive elements include curved soffits, brick formations, and signature circular windows that reinforce Lantern Burleigh's lighthouse-inspired form.&nbsp;

The refined material palette weaves together tinted glass, lush landscaping, warm crazy pavers, stacked tile, profiled concrete, and aluminum battens, creating a sophisticated coastal aesthetic that balances street presence with residential privacy.

CS Collective Co-Director David Skeen said what sets Lantern Burleigh apart is its complete lifestyle offering.

"The private and communal rooftop spaces, featuring infinity pools, saunas, and steam rooms, capitalize on the site's stunning 360-degree ocean views," Skeen said.

"Combined with our premium wellness centre and carefully selected retail offerings, we're creating a new standard for beachside living."&nbsp;

The ground floor precinct will be thoughtfully curated to attract leading food and beverage operators, working in harmony with the development's bathhouse and wellness facilities.

CS Collective Co-Director David Skeen said what sets Lantern Burleigh apart is its complete lifestyle offering

First look: CS Collective file for Lantern Burleigh, luxe apartments in Burleigh Heads

The monthly dwelling approval update by the Australian Bureau of Statistics again painted a grim outlook for Australia's new-build environment.

Total dwellings approved fell 3.6 per cent in November to 14,998.

There were most positives found in Victoria and Queensland where dwelling approvals remained stable and closer to their targets, although New South Wales is tracking well behind where they're forecasted to be.

The total number of dwellings approved in NSW was 42,109 over the 12 months until November 2024, 34,000 short of meeting the National Housing Accord quota for NSW.

"Despite a range of State and Federal programs designed to promote housing supply, dwelling approvals data from the last 12 months shows a chronic trend in the wrong direction," Urban Taskforce CEO Tom Forrest says, adding the new data shows there is a "mountain to climb".

"The data for NSW shows that Premier Minns is on the right track in looking to fast-track planning through the Housing Delivery Authority and through changes to the planning laws. The key to success will be through ensuring that new housing and employment remain the focus, and that planners don’t become distracted with other portfolio imperatives."

There has been a -10 per cent annual decline in approvals across all housing typologies in New South Wales. Apartment approvals declined a massive -26 per cent in the 12 months to November.

Stuart Ayres, CEO of the Urban Development Institute of Australia (UDIA) NSW, says the&nbsp;NSW Government has a lot of work to do in 2025 to turn around the housing supply crisis that continues to inflict more pain on future homeowners. 
 
"With&nbsp;approvals&nbsp;in the detached house market sitting at a 10-year low, it is important that the Housing Delivery Authority (HDA) remains ambitious in supporting greenfield subdivisions," Ayres says. 
 
"The hope of the side at the moment is the Housing Delivery Authority. It is absolutely critical that it facilitates high demand and more feasible greenfield development and subdivisions, and not focus exclusively on less feasible infill projects."

&nbsp;

Multi-unit approvals in the three months to November 2024 climbed significantly in Western Australia (+207.5 per cent) compared to the corresponding period in the previous year. This was followed by Queensland (+16.0 per cent), Victoria (+9.4 per cent) and New South Wales (+1.6 per cent). The Northern Territory registered a flat result. Declines were recorded in Tasmania (-85.7 per cent), the Australian Capital Territory (-82.4 per cent), and South Australia (-15.1 per cent).

Apartment approvals in NSW declined a massive -26 per cent in the 12 months to November.

Cranbourne West, Victoria mortgagee home sold at auction

Staff reporter

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