Sydney property prices to fall 1-5% in 2025: SQM Research [Video]

Sydney home prices are expected to fall by $20,000-$80,000 next year as affordability challenges and delays in widely anticipated interest rate cuts drag the property market.

SQM Research’s latest Housing Boom and Bust report, which has a track record of correctly forecasting price movements, indicated city prices were on course to fall between 1-5 per cent over 2025.

This kind of drop would scrub as much as $80,000 from the average value of houses given prices were already at extreme highs, with the median value of houses currently at about $1.65m.

SQM Research’s forecast is based on an expectation of slowing inflation, below trend economic growth and interest rate cuts of between 0.25-0.50 per cent.

It comes as two of Australia’s big four banks last week changed their forecasts of when they tipped the Reserve Bank to finally adjust rates, moving the expected date from February to May.

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