It’s out with the new and in with the old as apartment buyers in our major cities are urged to choose their purchases wisely, with warnings that cookie-cutter high-rise towers could underperform over the long term compared with older, well-located buildings.

And property experts say scarcity, strong fundamentals and smarter selections will matter more than ever in evolving city markets. (realestate.com.au)

Convergence Buyers Agents director Sky Hammer says his firm generally steers clients away from high-rise towers and new developments, instead favouring older-style apartments in smaller blocks where supply is limited.

“We look for small blocks, ideally eight to ten units or fewer,” Mr Hammer told the Sun Herald. “We avoid high-rise buildings and new developments altogether.”

Mr Hammer said part of the appeal of older stock, including Art Deco-style apartments, was scarcity.

“High-rise apartments are something we generally avoid because there’s so much supply,” he said.

The Melbourne-based buyers agent’s advice that stock selection matters as supply expands, resonates strongly in Sydney’s apartment market too, where shifting price trends, tight rental conditions and changing demand are shaping buyer strategies across the harbour city.

Sydney apartment pricing and affordability

• Sydney’s residential apartment market continues to set new price records. The median price for Sydney units reached about $844,000 late in 2025, rising around 3.2 per cent over the year,  driven in part by constrained supply and expanded government buyer support. (Domain Insight)

• Despite stronger unit price momentum, apartments remain more affordable than houses in dollar terms, although the gap is narrower than in recent years as pricing pressure builds across all dwelling types. (Apartments.com.au)

• Meanwhile, inner-Sydney precincts such as the CBD show steady activity, with median apartment prices around $980,000 in 2025, even as values consolidate and buyers become more selective. (Metro Realty)

What rents mean for buyers

• Rental demand in Sydney remains intense, with vacancy rates well below balanced market levels (around 1.4–1.7 per cent) a sign that renters still compete for limited stock. (Land Sales)

• Unit rents have also been setting record levels, with median weekly rents nearing $725–$750 for Sydney units in 2025. (Domain)

These conditions mean investors looking for rental returns will find strong fundamentals, but they also underscore why location quality and building desirability matter as poorer or poorly designed apartments can be harder to lease at competitive rates.

Supply dynamics and market outlook

• Supply pressures persist in Sydney, but completions have been rising in inner precincts — with thousands of new apartments delivered in 2025 and more expected. (JLL)

• Buyers’ agents in both cities caution against overpaying for generic over-supplied buildings with limited character or future appeal. Quality and scarcity are again key for preserving long-term value.

• Broader national indicators show some cooling in the rental growth rate and a modest easing of pressures in parts of the market, but overall demand remains strong. (ABC)

What buyers should consider

The advice for apartment buyers in both Sydney and Melbourne is the same.  

• Prioritising location quality – proximity to transport, jobs and lifestyle hubs continues to support both resale and rental demand.
• Assessing supply cycles – inner-city precincts with too many new blocks coming on sale at the same time can dilute demand for new units unless they clearly offer different appeals.
• Examining rental fundamentals – with Sydney’s vacancy rates so low, demand for well-positioned apartments should remain robust, but less-desirable stock may struggle to achieve top rents.
• Due diligence on strata – and that means professional strata reports by proven experts rather than off-the-peg documents provided by real estate agents. Excessively high levies, structural problems or strata minutes that reveal no problems of any kind, ever, should have alarm bells ringing
• Doing developer checks – The same applies to of-the-plan projects. A forensic examination of the developers, their directors and their previous schemes could pay dividends.

The traps in apartment stock, especially for buyers lured by Sydney’s specific market dynamics – from record unit pricing to tight rentals and shifting supply –  reinforce the need for careful, informed decisions. The potential rewards are strong, but so too are the risks for those who overlook fundamentals in today’s complex urban property markets.