For many Sydney homeowners thinking about transitioning from a family home to apartment living, the market is beginning to shift in their favour. Several of Sydney’s most coveted downsizer suburbs have recorded notable declines in median unit prices—some dropping by more than 15% over the past year.
These shifts are unlocking new opportunities for buyers who have been waiting for the right moment to secure a premium apartment without the premium price tag.
Why Are Downsizer Hotspots Becoming Cheaper?
Experts point to a combination of factors reshaping the market, particularly in Sydney’s established, low-density suburbs.
Ongoing uncertainty around government rezoning plans and the possibility of new high-rise developments have caused hesitation among buyers, especially on the upper north shore.
Buyers’ agent Henny Rahardja noted that suburbs across the Roseville–Gordon corridor—and nearby areas like Kirribilli—are experiencing slower demand due to unclear planning outcomes. Concerns around proposed low- to mid-rise developments and major transport-oriented projects have left some homeowners uneasy about how their neighbourhoods may evolve.
For some downsizers, the question goes beyond lifestyle:
If you buy a luxury penthouse today, will it retain its value if dozens of new apartments launch nearby in the coming years?
Where Prices Are Falling the Most
Among Sydney suburbs with median unit prices above $1 million, several key markets have seen double-digit declines:
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Kirribilli – down 15.2% to a median of $1.3 million
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Double Bay – down 13% to $1.925 million
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Lindfield – down 11.6% to $1.1 million
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Killara – down 10.5% to $1.11 million
These aren’t the only areas adjusting. Price drops have also hit:
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Barangaroo – down 9.1% to $4.5 million
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Rozelle – down 8.9% to $1.28 million
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Little Bay – down 8.2% to $1.28 million
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Bondi – down 8% to $1.38 million
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Inner City – down 7.7% to $1.02 million
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St Leonards – down 7.5% to $1.115 million
Some of these declines are due to reduced high-end sales, while others reflect new apartment projects entering the market and altering median price figures.
How Transport Upgrades Are Affecting Sentiment
Major transport improvements—such as the expanded Metro network—are adding an additional layer of uncertainty.
According to Dr Nicola Powell, Domain’s Chief of Research and Economics, residents worry about temporary disruption as well as long-term impacts on traffic, density, and local character.
Another challenge:
High entry price points for downsizer suburbs mean many owners are reluctant to pour the entire value of their home sale into a smaller apartment—so they’re simply holding off.
More Listings, More Choice… and More Bargains
In premium areas like Barangaroo, the recent settlement of high-value apartments at One Sydney Harbour has skewed median prices downward as fewer top-tier units come onto the market this year.
In contrast, increased investor activity in more affordable suburbs has brought averages down due to a jump in lower-priced sales.
However, for downsizers, these trends open the door to real opportunity.
Buyers’ agent Rich Harvey believes there’s genuine value emerging:
“Existing stock represents very good value for downsizers… it’s savvy to take advantage of this blip in the market because it will be short-lived.”
With construction costs driving the prices of new developments sky-high—some reaching $35,000 to $50,000 per square metre—established apartments are now offering compelling affordability.
What This Means for Downsizers in 2025
If you’ve been considering a move into a premium apartment, this could be one of Sydney’s most favourable windows in years.
High-quality existing units in prestigious suburbs are temporarily more accessible, giving buyers the chance to secure spacious, well-located homes without competing in overheated conditions.
But experts agree:
This price dip won’t last forever.
As planning certainty improves and population growth stabilises, demand is expected to return—particularly in lifestyle-rich downsizer hotspots.
