After a very brief cooling of the market, Sydney property is back doing what it does best, growing in value.

The monthly update from property data analytics firm CoreLogic showed a sharp turnaround in most capital cities over February, with their overall Home Value Index swinging from negative growth in January to positive in Feb.

Unit values in Sydney edged up 0.2 per cent, following back-to-back months of declines (-0.2 per cent in Jan and -0.3 per cent in December). The median unit value in Sydney is now $855,000.

Houses have performed in a similar pattern, up 0.3 per cent in February following declines of -0.4 per cent in January and -0.7 per cent in December. The Sydney median house value is $1.4 million, $545,000 more than the median unit value.

The interest rate change in the middle of February was enough to change the fortunes of most capital city markets. The upper quartile of the market led the growth in Sydney, aligning with CoreLogic’s past research indicating that high-value housing segments tend to respond more quickly to interest rate shifts.

Regional NSW saw stronger growth relative to the capital, with values rising 0.4 per cent over the month and one per cent over the rolling quarter.

Stock levels remained elevated in Sydney, with listing counts up 6.9 per cent compared to the previous five-year average. While the market remains in a rebalancing phase, the latest figures suggest Sydney’s downturn may have been short-lived, with further growth possible if borrowing conditions improve.

<h2>What happened in Sydney’s off the plan apartment market in February?</h2>

The off the plan apartment market in Sydney saw several significant developments in February including regulatory changes, major project approvals, and shifting market dynamics driven by anticipated interest rate cuts.

The NSW Government announced it will be reviewing off the plan contract laws to provide greater certainty for buyers and to prevent developers from unfairly profiting from contract delays or cancellations.&nbsp;

Proposed reforms include mandatory sunset clauses to ensure buyers can withdraw if key milestones are not met, restrictions on developers extending sunset dates beyond factors outside their control, and potential financial penalties for inaction.&nbsp;

The government is also considering changes to outdated land title covenants to facilitate housing development. Consultation is open until 7 March 2025, with legislation expected in 2025.

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/off-the-plan-contract-laws-under-review-to-provide-greater-certainty-to-buyers">Off the plan contract laws under review to provide greater certainty to buyers</a>

The NSW Government were again involved in the biggest planning move in February. They sign off on concept approval of the Central Barangaroo precinct by&nbsp;<a href="https://www.urban.com.au/developers/aqualand-australia" target="">Aqualand</a>.

The five-hectare development will feature residential, retail, hospitality, and community spaces, alongside a new metro station entrance and over two hectares of public open space.&nbsp;

<img alt="Central Barangaroo development takes big step with concept proposal approval" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-02-17%20at%208.55.23%E2%80%AFAM.png?VersionId=SFwWJx81d_FB3UrHwr4R.KF3vX8bVsAE" />

The project is set to generate $2.26 billion in economic activity during construction and create over 12,000 jobs.&nbsp;

Detailed development applications will follow, with construction expected to commence in late 2025 and the first stage completing around 2030.

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/central-barangaroo-development-takes-big-step-with-concept-proposal-approval">Central Barangaroo development takes big step with concept proposal approval</a>

Several notable residential projects progressed in February. <a href="https://www.urban.com.au/developers/goldfields-group">Goldfields</a>&nbsp;appointed <a href="https://www.urban.com.au/builders/ultra-building-co">ULTRA Building Co</a> as the builder for The Bryson in <a href="https://www.urban.com.au/developments/chatswood-nsw-2067">Chatswood</a>, a high-rise apartment project designed by <a href="https://www.urban.com.au/architects/make-architecture">Make Architects</a>.&nbsp;

<a href="https://www.urban.com.au/new-apartments/the-bryson-of-chatswood-871-877-pacific-highway-chatswood">The Bryson</a> will include one, two, and three-bedroom apartments, luxury penthouses, and a mix of retail and office space. Construction is scheduled for completion in Q4 2026.

[smartcode_project:default project_id=21170 project_image_fid=210270]

In <a href="https://www.urban.com.au/developments/darling-point-nsw-2027">Darling Point</a>, <a href="https://www.urban.com.au/developers/lendlease-development">Lendlease</a> and joint venture partner&nbsp;<a href="https://www.urban.com.au/developers/mitsubishi-estate-asia">Mitsubishi Estate</a>&nbsp;released preliminary plans for its significant development at <a href="https://www.urban.com.au/new-apartments/darling-point-road-apartments-darling-point-road-edgecliff">1 Darling Point Road</a>.&nbsp;

The proposed 17-level tower will include 60 apartments, with 21 designated as affordable housing. <a href="https://www.urban.com.au/architects/tzannes-architects">Tzannes Architects</a> is leading the design, with construction anticipated to begin in 2026.

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/preliminary-apartment-plans-revealed-for-landmark-darling-point-site-by-lendlease-and-mitsubishi-estate">Preliminary apartment plans revealed for landmark Darling Point site by Lendlease and Mitsubishi Estate</a>

<img alt="Preliminary apartment plans revealed for landmark Darling Point site by Lendlease and Mitsubishi Estate" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-02-05%20at%2012.37.22%E2%80%AFPM.png?VersionId=i_2JCgJfRF56VDrdjZo6FOW02I0boIVu" />

Further east, more shoptop housing is planned for&nbsp;<a href="https://www.urban.com.au/developments/bondi-beach-nsw-2026">Bondi Beach</a>’s Hall Street.

The five-level building will feature 17 apartments above several retail spaces. Designed by <a href="https://www.urban.com.au/architects/mhn-design-union">MHN Design Union</a>, the project aims to integrate with the evolving streetscape of Bondi’s commercial and residential precinct.

<img alt="First look: Hall St, Bondi Beach transformation to continue with new shoptop housing pitched" data-entity-type="" data-entity-uuid="" src="https://res.cloudinary.com/dz9xllyip/image/fetch/f_auto,c_limit,w_1440,q_auto/https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/field/image/Screenshot%202025-02-10%20at%2012.28.14%E2%80%AFPM.png?VersionId=AESrkS9BPGMPFQF7lkA4Z8DQcPVh6dY." />

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/first-look-hall-st-bondi-beach-transformation-to-continue-with-new-shoptop-housing-pitched">First look: Hall St, Bondi Beach transformation to continue with new shoptop housing pitched</a>

Before the February rate cut, CoreLogic conducted research to identify areas that could experience the highest growth from several potential rate reductions.

Their findings indicated that the <a href="https://www.urban.com.au/developments/chatswood-nsw-2067">Chatswood</a> and <a href="https://www.urban.com.au/developments/lane-cove-nsw-2066">Lane Cove</a> area would be one of the top performers, with a projected value increase of 16 per cent if the Reserve Bank were to cut the official cash rate by one percentage point.

The Eastern Suburbs could see a 13 per cent increase, while regional areas such as Dural to Wisemans Ferry and Campbelltown might experience growth of up to 18 per cent and 16 per cent.

Read more:&nbsp;<a href="https://www.urban.com.au/news/nsw/the-sydney-suburbs-that-will-see-the-biggest-uplift-in-apartment-values-after-interest-rate-cuts">The Sydney suburbs that will see the biggest uplift in apartment values after interest rate cuts</a>

Joel Robinson

City Beat February 2025: Sydney property downturn ends abruptly as rate cuts spur price growth

Joint venture partners Lendlease and Mitsubishi Estate are progressing with its recently acquired landmark site on the border of Darling Point and Edgecliff.

They've provided a sneak peak as to what they have planned for the 1,748 sqm site at 1 Darling Point Road, following the purchase from Anka Property last year.

There were approved plans in plans for a 12-level building with 40 apartments, plans that had been back and forth between the Woollahra Council given the substantial uplift they were seeking.

<a href="https://www.urban.com.au/developers/lendlease-development">Lendlease</a> and Mitsubishi Estate, the latter of whom is one of the largest real estate developers in Japan and worked with Lendlease on One Sydney Harbour and One Circular Quay, has submitted a Concept State Significant Development Application to the NSW Government for a 17-level tower (with the affordable housing uplift).

The concept, which comes before the full State Significant Development applications, will have 60 apartments, 21 of which will be designated as affordable.

Architecture firm&nbsp;<a href="https://www.urban.com.au/architects/tzannes-architects">Tzannes</a> has been called in to handle the design of the building.

<img alt="Tzannes" data-entity-type="file" data-entity-uuid="5fe43b2d-6490-4900-a084-a29ec5349def" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-02-05%20at%2012.37.27%E2%80%AFPM.png?VersionId=hQdOFK3DWauBl_e6nlCAf4f4o00op3CU" />

Tzannes, led by regarded architect Alex Tzannes, calls 1 Darling Point Road a "landmark opportunity to create architecture that is placeshaping for Edgecliff Station and community building for the greater eastern suburbs.

"With its unique topographical elevation overlooking the Harbour City and connections with existing transport infrastructure, this site is ready for urban densification," the architecture firm noted in the Architectural Design Report

"This project will contribute to Sydney's growing need for quality well-designed, and well-located, homes and amenities."

<img alt="Lendlease" data-entity-type="file" data-entity-uuid="1fdf903c-b044-4f69-8199-dad1c71c239c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202025-02-03%20at%202.25.44%E2%80%AFPM.png?VersionId=7br7HgVNsnlMJPoqFcajaBWSUjWeKgaT" />

The plan is to retain and refurbish the existing heritage building at 136 New South Road Road and also include retail space and 1,516 sqm of commercial office space located in the podium levels.

There will be 16 one-bed apartment on offer, jsut three two-bed apartments, 34 three-bedders, and eight four-bedroom apartments. A single 350 sqm-plus penthouse will crown the 16th level.

&nbsp;

The <a href="https://www.urban.com.au/developments/edgecliff-nsw-2027">Edgecliff</a> evelopment aligns with the NSW government's target of delivering 1,900 new dwellings in the Woollahra local government area by 2029.&nbsp;

&nbsp;

The project is expected to have an end value of around $500 million. Construction is anticipated to commence in 2026.

The project is expected to have an end value of around $500 million. Construction is anticipated to commence in 2026

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