【Buying a property in Australia】Trends and key factors of the Australian property market in 2025

【Buying a property in Australia】Trends and key factors of the Australian property market in 2025

Australia’s property market in 2025 will be influenced by buyer and seller sentiment, which will have a significant impact on property listings, transactions and price trends, and play a key role in different regions. 2025 will bring both opportunities and challenges to the market with changing lifestyles, regional trends and stable interest rates.

Seller sentiment: Listing intentions decline, secondary market supply drops

In 2025, seller sentiment across Australia showed subtle changes, reflecting a sensitive market. It is worth noting that seller sentiment in Tasmania is bucking the trend and rising. The survey showed a 15 per cent increase in the number of Tasmanians who thought now was a good time to sell, helped by rising house prices in the state, which has made it stand out as other markets begin to flatten out. Meanwhile, while the Brisbane market as a whole is still seeing modest price growth, data shows signs that sellers are also reluctant to list their properties for sale.

Buyer sentiment: stable optimism and regional growth, rising demand

On the buyer side, sentiment remained consistent, with about a third of buyers saying now is a good time to buy. Victoria stood out with 40 per cent of respondents being positive about buying opportunities. Buyer sentiment in Brisbane also remained stable and optimistic, showing confidence and interest in the local market. South Australia saw a 48 per cent surge in buyer confidence, with interest rising in regional Queensland markets where affordability and lifestyle appeal are driving demand.

The role of interest rate stability

The report noted that the impact of interest rates on buyer and seller sentiment remains a key factor. Encouragingly, concerns about rising interest rates have eased, with most buyers expecting rates to remain stable or fall over the next six months. This reduction in financial concerns is also reflected in seller sentiment, with the majority of sellers confident that interest rates will remain stable or fall, further stimulating the Australian property market.

Looking ahead: Trends for 2025

The performance of the housing market in 2024 highlights its enduring resilience. States such as Queensland, Tasmania and Western Australia are expected to continue their strong performance through to 2025, with house prices continuing to rise. Markets in Queensland and South Australia are also expected to continue to grow, reflecting a growing interest in regional markets. The Brisbane market will benefit from steady growth and sustained demand, providing important impetus for regional development.

2025 will bring more opportunities to the real estate industry and lay a solid foundation for future development. Staying informed and focused on quality opportunities will be key to success in the face of ever-changing markets and sentiment. If you want to seize the opportunity in the Australian real estate market in 2025, please contact Betty from Cheong Mei Australian Property immediately.

[Buying a property in Australia] Trends and key factors of the Australian property market in 2025

According to the latest data from Domain, an authoritative real estate platform in Australia, it is expected that by 2025, the price growth of stratified units in major Australian cities will exceed that of detached houses. Nicola Powell, head of economics and research at Domain, pointed out that this trend will bring new trends to the real estate market, especially for new buyers who are interested in buying a home, because the prices of stratified units (Apartments) and garden villas (Townhouses) are still relatively attractive to buyers.

Powell noted: “Historically, former houses have generally outperformed strata units in terms of capital growth. However, nothing is absolute and by 2025, we expect strata units in Brisbane, Australia, to outperform houses, which is a rare occurrence.” According to Domain’s year-end summary report, house prices in Brisbane are expected to rise by 5% to 7%, while strata unit prices will rise by 7% to 9%. This makes Brisbane one of the only major cities where strata unit values will grow faster than houses, while strata unit and house values in other cities will grow at similar rates.

Powell analysis points out that this trend will make strata units more attractive for shopping, especially for young buyers to enter the market more convenient. For first-time homebuyers, this will provide opportunities for capital growth and help open their investment path in the real estate market. In contrast, as the price of detached houses continues to rise, the pressure on first-time homebuyers to buy detached houses is gradually increasing. Therefore, it is expected that the growth trend of strata unit values will encourage more people to consider strata units as the first choice for entering the real estate market.

In the past, the Australian real estate market preferred detached houses, reflecting the desire for traditional detached houses and land. However, with the economic pressure and changes in population structure, stratified units have gradually become the mainstream choice. In addition, some buyers have also begun to choose townhouses to replace independent houses with land. If you want to know more about the real estate market in Brisbane, Australia, please contact Betty, Changmei Australia Property, to get the latest market information!