The latest edition of its quarterly research series reveals that Sydney’s inner eastern commercial precincts recorded $1.15 billion in transaction volumes during 2025 across Alexandria, Darlinghurst, Redfern, Surry Hills and Woolloomooloo.
The findings point to sustained investor appetite for strategically located, amenity-rich commercial assets, even as broader market uncertainty and rising interest rates continue to shape acquisition activity.
The report shows that activity across the city fringe was driven by a combination of supply constraints, precinct-specific repositioning opportunities and strong demand for assets with defensive characteristics. While transaction patterns varied by precinct and sector, the overarching theme was clear: high-quality assets in tightly held, well-connected urban markets continue to attract capital.
Among the standout performers, Redfern led the city fringe with $451.1 million in total sales turnover, supported by major institutional activity in student accommodation and office assets.
Alexandria recorded $403.4 million in transactions, with industrial stock remaining tightly held despite limited supply.
Surry Hills posted $205.9 million in sales, underlining continued investor confidence in one of Sydney’s most tightly held office and mixed-use precincts.
Darlinghurst recorded $58.7 million in verified activity, while Woolloomooloo reached $28.8 million, up more than 70 per cent on the prior year.
The report also highlights significant precinct-level shifts that are reshaping the market outlook for owners, investors and occupiers.
Samuel Hadgelias, Managing Director of RWC (SC), said the report reflects the continued appeal of tightly held city fringe markets where location, accessibility and amenity remain critical to investment performance.
“The $1.15 billion in transaction volumes across Sydney’s inner eastern precincts during 2025 underscores sustained investor confidence in well-located, amenity-rich commercial assets, even as broader market uncertainty persists,” Mr Hadgelias said.
“What we are seeing across the City Fringe is a flight to quality. Investors and occupiers are backing precincts with strong fundamentals, limited supply and a clear long-term positioning story. That is particularly evident in markets such as Alexandria, Surry Hills and Redfern, where asset quality, connectivity and scarcity continue to support demand.”
He said Darlinghurst, in particular, would be closely watched as public domain works along Oxford Street begin to reshape trading conditions and improve the long-term investment case for the precinct.
“The Oxford Street revitalisation strategy is one of the most significant placemaking announcements for the area in years. For commercial property owners and occupiers, it provides clarity around the future direction of the precinct and reinforces the value of activated, pedestrian-oriented commercial environments,” he said.
Looking ahead, the report notes that the Reserve Bank of Australia’s second consecutive rate hike in March 2026, taking the cash rate to 4.10 per cent, has reintroduced a degree of caution into the investment market.
However, RWC (SC) expects well-located assets in supply-constrained markets to continue demonstrating defensive characteristics, with the higher cost of capital likely to intensify the market’s flight to quality rather than weaken it.
READ THE FULL REPORT HERE
Samuel Hadgelias available for further information and media commentary