Sydney is still known as one of Australia’s hottest and most expensive markets in 2025. Recent information about home loans and properties shows that loans are getting bigger, buyers are fighting for homes, and prices are going up even though the economy as a whole is not doing well. Whether you’re looking for a family home or planning an investment, it’s important to know the most recent numbers.
The average loan for a home owner-occupier in Sydney is now $816,000 for the June 2025 quarter. This is $43,000 more than last year. Investor loans are higher, at $834,000, which shows that Sydney is still a great place to invest in real estate because it costs a lot to get in.
| State | Owner-occupier | Investor loan |
|---|---|---|
| NSW (Sydney) | $816,000 | $834,000 |
| VIC | $639,000 | $598,000 |
| QLD | $662,000 | $639,000 |
| SA | $597,000 | $599,000 |
| WA | $620,000 | $583,000 |
| TAS | $481,000 | $472,000 |
| NT | $484,000 | $421,000 |
| ACT | $635,000 | $668,000 |
These numbers come from reports from ABS and lenders. Sydney is ahead of all other regions because it has the highest demand.
Sydney’s average loan size increased by more than 5% annually due to high demand, high incomes, and a shortage of supply. Sydney remains the most expensive city in Australia for buyers and borrowers, despite Queensland and Western Australia experiencing larger percentage increases.
Even though interest rates have been high in the past, mortgage rates are still rising. This is because property prices are still high, more people are moving than ever before, and households are changing. New home loans are growing at about the same rate for both those living in the home and those looking to invest. This means that the same things are driving the market.
Explore Australian mortgage trends by state.
The average price of a home in Sydney in mid-2025 is about $1,228,000. Prices are going up 1.8% every three months and 1.6% every year, which shows that prices are still going up even though they are hard to afford.
Banks expect moderate growth to continue throughout the year, with Sydney home values expected to rise by “2.7% to 5%” depending on the suburb and lending situation. Recent cuts to interest rates could make prices go up even more, especially in neighborhoods where demand is high.
Track market forecasts at Domain House Price Report.
As of June 2025, the average home loan for a new owner-occupier in Australia was $678,000.
Average first monthly payment: $3,961 for a 30-year term.
The interest rate for those who live in their homes is 5.76% per year, but for investors the rate is a little higher.
The average rate for fixed-rate loans (1–3 years) in June 2025 was 5.41% per year.
About 33,000 Australians switch lenders every month, and about 20% of new loans are still interest-only.
First-time homebuyers in Sydney usually borrow less than refinancers or investors, but they still borrow about $554,000 on new loans. High deposits are common, with an average of $159,000.
There are a number of reasons why this cycle of record-high prices and bigger home loans keeps going:
A lot of people are moving to other countries.
There are fewer people living in each house (smaller households).
There are limits on new supply because of construction problems.
Higher average incomes, especially for buyers
Demand is going up because of investors and owner-occupiers.
Despite previously increased interest rates, Sydney property values have risen rapidly, surpassing previous highs.
Buyers in Sydney need to plan for bigger deposits and big monthly payments because loan rates are high and prices are going up. On the other hand, investors benefit from rising property values and high rental yields. Getting the best result can be a lot easier with strategic refinancing, government incentives, and help from a knowledgeable broker.
The home loan and property price data for Sydney in 2025 show that it is still Australia’s most valuable and dynamic system. If first-time home buyers and investors do their homework on the market, save up, and get expert advice, they can use the city’s trends to make smart property decisions.
