Sydney’s inner city is experiencing a major resurgence, reversing the pandemic‑era shift toward suburban and regional living. In this month’s Get Real Podcast, Ewan Morton and long‑time CBD property specialist James Crow explore why demand has surged back into the CBD, Pyrmont and Woolloomooloo. After years of volatility, these precincts are thriving once again, fuelled by a combination of lifestyle attraction, population growth and infrastructure investment. Once industrial zones with little residential appeal, these suburbs have evolved into world‑class urban precincts thanks to decades of redevelopment. From Barangaroo and the evolving Darling Harbour to the ICC and the new Sydney Fish Market. This transformation has created vibrant, walkable communities that offer culture, connectivity and waterfront living in a way that outer suburbs simply can’t replicate.
The pair reflect on the extreme shifts triggered by COVID. During the pandemic, Sydney’s inner‑city rental market experienced unprecedented disruption: vacancy rates ballooned, rents dropped by up to 40%, and the short‑stay market collapsed overnight. Properties that once leased with ease suddenly struggled to attract tenants as international borders closed and city life paused. Yet this low point was followed by one of the quickest rebounds the market has ever seen. With borders reopening and universities resuming in‑person learning, Sydney once again became a magnet for young professionals, skilled migrants and students. In 2025, Australia recorded more than 821,000 international students, and a significant portion chose Sydney due to its universities, lifestyle and job opportunities. This demographic has been a major force behind today’s tight vacancy and rising rental demand.
Infrastructure has also reshaped the way people live and move within the city. James highlights the Sydney Metro as a complete game‑changer, reducing commute times and making inner‑city living more practical and appealing than ever. Combined with expanded light‑rail services and enhanced ferry connections around Barangaroo and Circular Quay, the inner city is now one of the most accessible parts of Sydney. With transport efficiency rising and car dependency falling, more people are choosing the convenience and energy of urban living. This shift has led to a rapid tightening of the rental market, with property managers reporting competitive run‑sheets, multiple tenant applications and faster leasing cycles, a stark contrast to the uncertainty of the pandemic years.
For investors, the inner city currently presents surprising opportunities. While houses in outer suburbs surged in value during the pandemic, apartment values in the CBD and fringe precincts grew more modestly. Now that rents have risen sharply, many of these properties offer strong rental yields and long‑term upside. Ewan Morton even cites examples of 7% gross returns in premium CBD locations, an outcome few would have predicted several years ago. Rising strata insurance costs remain a challenge, but improved rental performance is helping offset these pressures. Ultimately, the data and on‑the‑ground insights point to a clear conclusion: Sydney’s inner city is not just recovering, it’s evolving into an even more desirable and in‑demand place to live.
🎧 Click here to listen on Spotify and discover your next favourite episode.