As we step into 2025, many Australians are wondering what’s next for the property market. Will prices continue to rise? Is now a good time to buy? Whether you’re a first-home buyer, investor, or looking to refinance, staying ahead of market trends can help you make smarter property decisions.
Let’s break down what the experts are saying and what it could mean for you.
Most Agents Expect Prices to Keep Climbing
According to CoreLogic’s 2025 Real Estate Agent Survey, 65% of agents anticipate property prices will rise over the next 12 months. This aligns with ongoing momentum from late 2024, where steady interest rate pauses, tight housing supply, and continued buyer demand supported modest growth in many regions.
In particular, areas like Brisbane, Adelaide, and parts of regional NSW and Queensland are expected to see further gains, driven by migration, infrastructure projects, and housing shortages.
Interest Rates: A Stabilising Force?
The Reserve Bank of Australia (RBA) has kept the cash rate on hold in recent months, providing some predictability for borrowers. While some economists still predict one more rate hike in 2025, many agree we’re likely nearing the peak of this tightening cycle.
For buyers and refinancers, this means we could be entering a window of relative stability—offering a chance to lock in competitive rates before any further increases or before fixed-rate “cliff” repayments begin to affect household budgets en masse.
Supply Remains a Challenge
The property market remains undersupplied, particularly in capital cities. Government initiatives aimed at boosting new housing starts—such as the Federal Housing Accord and state-based planning reforms—will take time to have an impact.
Until supply catches up with demand, particularly for detached homes and family-friendly suburbs, prices are likely to remain under upward pressure.
Investor Activity on the Rise
Another trend shaping 2025 is the return of investors. With rental vacancy rates at historic lows (under 1% in many areas according to SQM Research) and rental yields improving, more investors are re-entering the market.
This adds competition for properties, especially in the affordable housing bracket, which could further push up prices in select suburbs.
What This Means for You
Whether you’re looking to buy your first home, upgrade, or refinance, the 2025 property market offers both opportunities and challenges. Price growth is expected to continue, but at a more sustainable pace than previous boom years.
If you’re unsure of your borrowing power or what your next step should be, speaking with a mortgage broker can help you navigate this evolving landscape. Brokers can assess your financial situation, compare lenders, and help you secure a competitive loan that matches your goals.
