Sydney’s House–Apartment Price Gap Hits Record High as the Property Ladder Pulls Further Apart — Sydney Auction Clearance Rate at 63%

Week’s Key Focus

Latest data shows that the price gap between Sydney houses and apartments has widened to its largest level since records began in 1993. In the September quarter of 2025, the median house price reached $1.75 million, which is 108% higher than the median apartment price of $840,400. For comparison, the premium hovered around 50% during the decade from 2011 to 2021 — meaning the price growth of houses relative to apartments has more than doubled in recent years.

KPMG urban economist Terry Rawnsley notes that as the “property ladder stretches further apart,” the traditional upgrade pathway of buying an apartment first and later moving into a house has become far more difficult. Increasing numbers of families are being forced to make new choices: staying long-term in apartments but having fewer children; relocating to far-flung suburbs in search of affordability; or leaving Sydney altogether for cheaper cities.

Over the past decade, a steady increase in apartment supply has kept unit price growth significantly weaker than that of houses — apartments rose only 18%, while houses surged 67%. Census data shows that between 2011 and 2021, the share of houses in Sydney’s dwelling stock fell from 61% to 56%, while apartments rose from 26% to 31%. This shift in the supply mix has further amplified the divergence in price performance between the two markets, intensifying buyer competition for standalone houses.

Despite weaker price growth, 63 suburbs in Sydney now have a median apartment price above $1 million. Barangaroo leads the list with a median of $4.5 million, followed by Darling Point, Milsons Point and Double Bay. This quarter also saw Crows Nest, Paddington and St Ives join the “million-dollar apartment club” for the first time.

At the other end of the spectrum, Mount Druitt remains the most affordable mainstream apartment market, with a median price of $420,000, highlighting the significant divergence within Sydney’s apartment sector.

Auction Results Last Week

Sydney:1,517 properties were scheduled for auction, with 979 results reported. A total of 613 properties were sold, giving a clearance rate of 63%. The total auction value reached AUD 678,893,333, and the median house price was AUD 1,545,000.

Melbourne:1,597 properties were scheduled for auction, with 1,155 results reported. A total of 778 properties were sold, resulting in a clearance rate of 67%. The total auction value reached AUD 642,212,473, and the median house price was AUD 1,005,000.