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 recent NSW Government announcements aimed at streamlining planning and approvals, it should help us deliver more homes—faster.”
Consumer confidence is also expected to bounce back with interest rate cuts and the Federal election dust settling. “People want certainty, and if they get it, we should see an uptick in apartment presales,” he said.
And when it comes to location? It’s all about being close to the action. “Central, well-located housing within easy walking distance to restaurants, bars, parks, places of employment and, of course, transport. That’s where the demand is.”
Commercial: Mixed-use is the name of the game
“The trend toward mixed-use developments continues to grow, offering a blend of commercial, residential and retail in one location. Precincts that cater to different people at different times of the day and week are more activated, interesting and resilient” Fabrizio said.
Sustainability is no longer nice to do, it’s an expectation. “Refurb in favour of rebuild is the trend,” he said. “ Often, refurbishing and repurposing an existing building has significant environmental benefits.”
Office demand is also shifting. “Tenants are 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 skilled labour shortages are adding to the challenge. We need more skilled workers immediately.”
To stay ahead, his company doubled down on in-house capabilities. “Control over costs, timelines, resources and quality is everything. We’ve built and continue to build our business around these key themes.” 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 such as Bankstown, Bella Vista, Crows Nest, Macquarie Park and along the Sydenham to Bankstown corridor, together with Sydney Metro West station locations.”
What’s next: Interest rates and policy shifts
Federal 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 should start to see some real movement and hopefully housing supply reaching consistently high levels, meeting the pent-up demand in the market.”
With planning approvals supposedly speeding up, Fabrizio is optimistic about replenishing the development pipeline.
“For PERIFA and the broader Versatile Group of companies, we expect interest rate cuts and recent policy changes to help grow and accelerate delivery of our pipeline.” 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
