Blue Mountains Property Market Update 2nd Half 2025
The Blue Mountains is a stunning picturesque area about 60 kilometres west of Sydney CBD, New South Wales. Known for its dramatic cliffs, it is a haven for outdoor enthusiasts. With modern amenities and transport options to Sydney CBD, the area is an ideal family location.
Property Trends
In Q2 2025, Blue Mountains recorded a median house price of $1,000,000 and a median strata property price of $745,000. This is an annual (Q2 2024 – Q2 2025) price growth of 12.4% for houses and 0.7% for strata properties. Comparing Q2 2024 and Q2 2025, sales declined by -13.5% (to 334 sales in Q2 2025) for houses and -3.6% (27 sales in Q2 2025) for strata properties. There is an undersupplied market, particularly for houses, which created a buffer despite higher interest rates – which explains median price growth. This suggests that now is an ideal time for owners to capitalise on their investments. Further, looking into planned new housing stock, there is very little in the 2025 pipeline. Buyers must act fast before there is further price growth.
Project Development
Blue Mountains will see approx. $127.7M of new projects commencing construction in 2025. There are several mixed-use and commercial projects planned, which improves liveability and create more jobs. With only limited ready-to-go stock planned for 2025, most of which are units (29) and land lots (48), the undersupply in houses will continue. This will push prices up, not only for houses but also for other stock types.
Rental Market & Growth
House rental yields in Springwood (postcode 2777) were 3.0% as of June 2025, slightly above the Blue Mountains LGA (2.9%) and the Sydney Metro (2.7%). Further, median house rental price increased by 6.6% in the past 12 months to Q2 2025, at $650 per week. At the same time the number of houses rented decreased, by -15.0% (to 193 houses) in Q2 2025, indicating an undersupply. There is a highly demanded house rental market in Blue Mountains, which is beneficial to investors.
Vacancy Rates & Property Investment
Springwood (postcode 2777) recorded a vacancy rate of 0.4% in June 2025, well below the Blue Mountains LGA average (1.0%) and Sydney Metro’s (1.6%). Vacancy rates have fluctuated on a month-by-month basis in the past 12 months, but overall remained steady, indicating the rental market has remained tight. Furthermore, a 0.4% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental properties in Springwood. This is conducive for investors, even with a higher sale/entry price in the past 12 months to Q2 2025.
