The most popular Sydney suburbs for first home buyers in 2025

Sydney house prices are entering yet another growth cycle.

With the median house price in the city approaching $1.5 million, more Sydneysiders are turning to apartments. As demand for apartments rises, so do their prices.

A brief market downturn has passed, and both housing types are now trending upward. Sydney’s median unit value currently sits at $859,000—over $600,000 less than houses—making them the more accessible option for many.

First home buyers have largely accepted that their first step onto the property ladder will likely be an apartment. Around 25% are willing to spend up to $1 million, while the majority (40%) are prepared to spend over $1 million to buy into the Harbour City.

Here’s where first home buyers are focusing their search:

Rozelle

Sydney’s Inner West has long been one of the most popular regions for first home buyers. However, a lack of new apartment supply has suppressed the market.

PERIFA is looking to change that with the launch of Rozelle Village, a landmark development breathing new life into the former Balmain Leagues Club site.

Set to deliver 59 affordable housing units within a broader mix of 227 apartments, Rozelle Village combines inner-city convenience with lifestyle perks like curated retail laneways, a community plaza, and proximity to Darling Street.

With a mix of one-, two-, and three-bedroom apartments, it’s a rare opportunity for first home buyers seeking urban appeal and community connection. Construction begins in late 2025, with completion expected in 2028.

Melrose Park

Melrose Park is one of Sydney’s most active first home buyer markets, amid a $5 billion transformation.

Two major developers—Deicorp and Sekisui House Australia—are driving the suburb’s regeneration.

Deicorp’s Melrose Central will deliver 500 apartments within a mixed-use precinct located directly in front of the future Melrose Park light rail stop. The project will feature a 30,000 sqm shopping centre anchored by Coles, offering walkable convenience and appeal for young professionals.

Sekisui’s broader masterplan includes the recently launched Dawn, comprising 368 smart apartments with rooftop gardens, smart home tech, and penthouse options. It’s located near the future Melrose Park High School and town centre.

The next stage, Aeris, will be the largest yet—468 apartments across two high-rise towers, the tallest in the precinct.

Waterloo

Waterloo has been a first home buyer hotspot for two decades. Its proximity to the CBD and relative affordability—compared to Redfern and Surry Hills—continues to attract buyers, many of whom previously rented nearby.

After a lull in new development, DASCO has launched Danks St District, a new mixed-use community set to become the suburb’s go-to lifestyle hub.

One-bedroom apartments start from $960,000. The 1.7-hectare site, bordered by Danks, McEvoy and Young Streets, will feature six residential buildings. The first stage, Bourke Street Residences, includes generous floorplans, rooftop gardens, outdoor gyms, and soundproofed music rooms—ideal for creatives and young couples.

Buyers benefit from Latent Defects Insurance, offering added peace of mind—an increasingly rare feature in new builds so close to the city.

Merrylands

First home buyer activity is booming in Western Sydney, particularly in Merrylands on the edge of Parramatta.

Mason & Main by Coronation Property has seen strong demand from first-time buyers. A handful of brand new, move-in-ready apartments are still available, including studios and two-bedders—many qualifying for stamp duty exemptions.

Residents enjoy rooftop amenities, a gym, pool, and a retail precinct with over 25 stores. Located just 350 metres from Merrylands Station, it’s an attractive option for commuters.

Nearby, Northland Group has launched Central Quarter, the first Merrylands project with 10-year Latent Defect Insurance by Resilience Insurance. The building will house 194 apartments and a rooftop communal space, with construction due for completion in early 2026.

Northland is currently locking in street-level retail tenants to enhance resident amenity.

St Leonards

Project: Waterstone

Suburbs connected to Sydney’s expanded Metro network are increasingly popular with first home buyers—none more so than St Leonards.

Sekisui House Australia recently launched Waterstone, a 230-apartment development with a strong sustainability and community focus.

The development includes a range of one-, two-, and three-bedroom options, with nearly a third of the site dedicated to green open space. A central “green spine” and swimming pool will feature prominently.

Waterstone is inspired by the Japanese philosophy of Satoyama, which promotes harmony between humans and nature. Native plantings, energy-efficient systems, and sustainable materials all form part of the design’s environmental ethos.