Sydney’s property market is facing a new kind of pressure—this time from above, as housing density becomes the city’s next frontier.
📍 Suburbs Like Eastgardens, Zetland & Rhodes Are Going Vertical
According to new urban planning data, Sydney suburbs such as Eastgardens, Zetland, and Rhodes are leading the national push for greater housing density. These areas are transforming former industrial sites into high-density residential hubs—driven by proximity to public transport and significant rezoning activity.
The result? A rapid pipeline of apartments, terraces, and duplexes is emerging, offering potential entry points into Sydney’s rising market.
Rodney McLoughlin notes that while this density shift increases stock, it doesn’t automatically translate to affordability. Supply remains slow to materialise, often lagging far behind approvals due to funding delays, infrastructure constraints, and red tape.
🏘️ “Gentle Density” Is the New Blueprint
Medium-density housing such as terraces, townhomes and duplexes is becoming the state’s focus. NSW is pioneering a national model with its new pre-approved housing design scheme, designed to speed up approvals and reduce development costs.
This opens the door for smaller developers and landowners to act quickly—but it also puts pressure on established suburbs to adapt.
📉 Caution Behind the Clearance Rates
While Sydney’s auction clearance rate hovers above 70%, signaling a warm market, buyer sentiment remains cautious. Three rate cuts have improved borrowing capacity and driven urgency, but only well-priced homes are selling. Buyers today are value-conscious and strategic.
Rodney McLoughlin highlights that buyers are moving quickly in competitive areas, especially where transport and rezoning align. But he warns that unrealistic price guides are still met with buyer resistance.
📈 Prices Rise, But Not Everywhere
Despite strong fundamentals, not all suburbs are benefiting equally. Affluent areas such as Milsons Point and Kirribilli have seen value declines this year—driven by weaker unit demand and buyers growing wary of overvalued off-the-plan purchases.
Meanwhile, city-fringe suburbs with better transport access and medium-density growth potential are attracting younger buyers and investors looking for value and future uplift.
🔑 What This Means for You
- If you’re a buyer: Target transport-connected, medium-density zones.
- If you’re a seller: Presentation and pricing remain everything.
- If you’re an investor: Watch rezoning trends and early-stage densification suburbs.
Rodney McLoughlin continues to guide clients through Sydney’s evolving landscape with proven insight and clear strategies.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 17 October 2025.
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.
