Sydney’s property game in 2025? Buckle up—it’s going to be a wild ride. But for those who play it right, the opportunities are big.
PERIFA co-founder and managing director Fabrizio Perilli is stepping onto The Urban Developer’s Sydney Property & Economic Outlook stage, ready to call it like it is. From housing crunches to commercial comebacks, here’s what he sees in store for the year ahead.
Housing: More homes, less hassle?
Affordability is still the hot topic, developers are feeling the heat.
“Housing supply is front and centre,” Fabrizio said. “The government is pushing harder than ever, and with streamlined planning and faster approvals, we can actually get more homes built—faster and cheaper.”
Consumer confidence is also expected to bounce back with interest rate cuts and election dust settling. “People want certainty, and if they get it, we’ll see more action in apartment presales,” he said.
And when it comes to location? It’s all about being close to the action. “Sydneysiders want walkability—restaurants, bars, parks, and, of course, transport. That’s where the demand is.”
Commercial: Mixed-use is the name of the game
The days of single-purpose developments are fading fast. “We’re seeing a huge push for mixed-use precincts—places where people can live, work, and play in one spot,” Fabrizio said.
“It makes sense. It creates vibrant, active spaces that thrive at all hours.”
Sustainability isn’t just a buzzword anymore—it’s an expectation. “Refurb over rebuild is the trend,” he said. “Why knock it down when you can transform it into something more sustainable?”
Office demand is also shifting. “Tenants are finally locking in their long-term plans, and sublease space is disappearing. It’s a good sign for the sector,” he said.
Cost pressures: The storm isn’t over, but it’s getting there
Construction insolvencies have been a harsh reality, with 2800-plus companies folding in 2023-2024.
“The cost hikes have been brutal,” Fabrizio said. “But the worst of the inflation seems to be behind us, and that’s giving us a bit more certainty.”
Supply chains? Still a headache. “The weak Aussie dollar isn’t doing us any favours—it’s keeping import costs high,” he said. “And don’t get me started on the labour shortage. We need more skilled workers yesterday.”
To stay ahead, his company has doubled down on in-house capabilities. “Control over costs, timelines, and quality is everything. We’ve built our business around that,” he said.
The big opportunities: Follow the infrastructure
If you’re looking for where to build, follow the transport links.
“The government’s Transport-Oriented Development push is huge,” Fabrizio said. “They’re opening up sites near major hubs—Bankstown, Bella Vista, Crows Nest, Macquarie Park.
“If you’re not paying attention to these areas, you’re missing out.”
What’s next: Interest rates and policy shifts
Election jitters and interest rate movements will shape the short term. “People get nervous around elections, but once it’s over and rates start dropping, confidence should pick up,” Fabrizio said. “That’s when we’ll see some real movement.”
With planning approvals supposedly set to speed up, Fabrizio is optimistic about replenishing the development pipeline.
“If they can actually cut through the red tape, we’ll be in a much better spot,” he said.
Want the unfiltered take?
Fabrizio will bring his insights—and his expert property knowledge—to The Urban Developer’s Sydney Property & Economic Outlook event. Don’t miss it.
Event details:
Date: Tuesday, 27 February
Time: 7.30am - 10am AEDT
Location: Sydney
Learn more: Click here
Brisbane has sold out—but Melbourne, don’t worry we’ve got you covered:
Melbourne | February 20 | Click here
