property market 2025
Market Movements
Property Market 2025: Trends, Price Movements, & Opportunities
As we move through 2025 the Australian property market is showing signs of steady recovery and cautious optimism. After several volatile years, the landscape is shifting as interest rate cuts, tight supply, and demographic shifts come together to shape what lies ahead. Here’s what to know about trends, median prices, and where opportunity is emerging.
Key Trends Shaping the Market
1. Interest Rates & Borrowing Power.
The Reserve Bank of Australia has delivered multiple rate cuts already in 2025 which are easing borrowing costs. These changes are boosting buyer confidence and improving mortgage affordability in many regions (Property Update, 2025).
2. Supply Shortages and Tight Rental Markets.
One of the strongest pressures on the market is limited housing stock. Listings remain low, and many capitals and regional areas have very tight vacancy rates. Rental markets are still under strain, pushing up rents and encouraging investors to seek high yield opportunities (Elders Real Estate, 2025).
3. Population Growth & Migration.
Domestic and international migration continues to add demand, especially in gateway cities like Sydney, Melbourne, Brisbane and Perth. Regions with strong infrastructure or commuting viability are attracting more buyers (Housing Market News, 2025).
4. Affordability Constraints
For many buyers, affordability remains a primary barrier. Even though rates are easing, property prices in major cities are high relative to incomes. First home buyers are particularly sensitive to deposit requirements and repayments (InvestSMART, 2025).
5. Regional vs Metro Divergence
Some regional markets are outperforming expectations, driven by lifestyle shifts, remote work, lower cost and infrastructure. However, not all regional areas are seeing strong demand. Metro markets are still leading, especially in suburbs with good amenities and schools (Elders Real Estate, 2025).
6. Policy & Government Support
Incentives for first home buyers, possible reforms around stamp duty, negative gearing and lending regulation are playing a role. These policies can shift market behaviour, especially for buyers managing deposits or borrowing thresholds (Property Update, 2025).
Median Price Movements
Nationally, dwelling values have risen by about 4.6% over the past 12 months as of mid 2025 (Elders Real Estate, 2025). The national median dwelling price is approximately $905,000 (Elders Real Estate, 2025).
In major capitals:
Sydney’s house prices are projected to reach around A$1.83 million by mid 2026 (InvestSMART, 2025).
Melbourne is forecast to hit about A$1.11 million (InvestSMART, 2025).
Brisbane, Adelaide, and Perth are also expected to see continued gains, although growth may moderate (Property Update, 2025).
Unit prices are generally rising faster in many cities because they offer more affordable entry points (Property Update, 2025).
Opportunities for Buyers, Investors & Mortgage Holders
The Sydney property market has challenged first home buyers.
1. First Home Buyers
This year may offer easier entry in outer suburbs or regional centres. Lower competition in some of these areas plus government concessions might make securing a home more realistic (InvestSMART, 2025).
2. Property Investors
There are chances in high-yield rental markets, especially where supply is tight. Units in growing suburbs and regional areas with infrastructure look promising (Elders Real Estate, 2025).
3. Refinancers & Upgraders
Those with existing mortgages may benefit from refinancing under better terms as rates ease. Upgraders may have more negotiating power in steady but not overheated suburbs (Property Update, 2025).
4. Timing Matters
Because rate cuts are expected to have their strongest impact in the second half of 2025, buyers who move early may benefit from less competition (Housing Market News, 2025).
5. Mortgage Strategy is Key
With price growth expected but affordability still pressured, structuring your mortgage well is important. Fixed vs variable rates, buffer for repayments, deposit size, and lender choice matter (Property Update, 2025).
Risks & Things to Watch
· If rate cuts are smaller than expected, borrowing power may not improve as much.
· Cost of living pressures could dent buyer confidence.
· Supply constraints in construction may push up prices further.
· Policy changes around tax or lending could affect returns (Property Update, 2025).
Conclusion
2025 is shaping up to be a year of measured growth and selective opportunity in Australia’s property market. For those who plan carefully, understand their finance options, and act in the right locations, there are solid chances to build value and equity. The key will be balancing ambition with caution and making mortgage decisions that are sustainable.
By Allister Smith
Director.
Genmax Capital
hello@genmaxcapital.com.au
0417 344 050
Bibliography
Elders Real Estate. (2025). Australian Property Market Half-Year 2025: Trends, Data and What’s Next. Available at: https://www.eldersrealestate.com.au/the-view/australian-property-market-half-ye ar-2025-trends-data-and-whats-next/ [Accessed 15 Sept. 2025].
Housing Market News. (2025). Australian Property Market Forecast 2025. Available at: https://housingmarketnews.co.uk/australian-property-market-forecast/ [Accessed 15 Sept. 2025].
InvestSMART. (2025). Australia Property Price Forecast 2025–2026. Available at: https://www.inve stsmart.com.au/investment-news/australia-property-price-forecast-2025-2026/154636 [Accessed 15 Sept. 2025].
Property Update. (2025). Australian Property Market Predictions 2025. Available at: https://propertyupdate.com.au/australian-property-market-predictions/ [Accessed 15 Sept. 2025].