Despite broader market uncertainty and rising interest rates shaping investor activity, new research reveals Sydney’s city fringe recorded $1.15 billion in commercial transaction volumes during 2025.
The activity was concentrated across five key inner‑eastern commercial precincts – Alexandria, Darlinghurst, Redfern, Surry Hills and Woolloomooloo.
The findings are detailed in exclusively released The Commercial Edge: Sydney City Fringe Market report, the latest edition of Ray White Commercial (SC) quarterly research series.
Sydney’s inner eastern commercial precincts recorded $1.15 billion in transaction volumes during 2025
Despite current economic pressure and market headwinds, the transactions point to sustained investor appetite for strategically located, amenity-rich commercial assets.
The activity across the city fringe was reportedly driven by a combination of supply constraints, precinct-specific repositioning opportunities and strong demand for assets with defensive characteristics.
Although transaction patterns varied by precinct and sector, there was an overarching trend for high-quality assets in tightly held, well-connected urban markets to attract capital.
Redfern led the city fringe performance with $451.1m in total sales, dominated by activity in student accommodation and office assets.
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Source: RWC
This was followed by Alexandria recording $403.4m in transactions, with industrial stock remaining tightly held despite limited supply.
Surry Hills turnover of $205.9m in sales revealed underlining continued investor confidence in one of Sydney’s most tightly held office and mixed-use precincts.
Darlinghurst followed with $58.7m in verified activity, while Woolloomooloo reached $28.8m, up more than 70 per cent from the year prior.
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Source: RCA
Samuel Hadgelias, managing director of Ray White Commercial (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.”
According to Mr Hadgelias, 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.
Source: RCA
Mr Hadgelias said Darlinghurst in particular would be closely watched as public domain works along Oxford St begin to reshape trading conditions and improve the long-term investment case for the precinct.
“The Oxford St revitalisation strategy is one of the most significant placemaking announcements for the area in years,” he said.
“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.”
While RBA’s second consecutive rate hike in March has reintroduced a degree of caution into the investment market, Ray White Commercial (SC) expects well-located assets in supply-constrained markets will continue to perform.