2025 Australian Property Forecast
The Australian property market is thriving. Population growth, a housing shortage, and strong investor interest are driving demand.
As of October 2024, residential real estate was valued at a staggering $11 trillion, according to CoreLogic! This growth offers opportunities for buyers and investors alike in the Australian property market.
australian Property Trends by State
Property markets in Australia vary across states. While Sydney and Melbourne remain key players, cities like Brisbane, Adelaide, and Perth are showing impressive growth.
South Australia / Adelaide
- Median house price: $856,856 (+14.4% annual change)
- Median unit price: $564,854 (+17.2% annual change)
- Regional house price: $446,337 (+10.8% annual change)
- Regional unit price: $298,151 (+7.1% annual change)
Adelaide is growing fast. Median house and unit prices increased by 14.4% and 17.2% in 2024. Prices are still affordable compared to Sydney and Melbourne. Regional South Australia also saw strong growth.
Victoria / Melbourne
- Median house price: $925,762 (-1.3% annual change)
- Median unit price: $612,215 (-1.6% annual change)
- Regional house price: $594,591 (-1.4% annual change)
- Regional unit price: $403,993 (-2.2% annual change)
Melbourne saw a drop in 2024. But the city’s population is set to double. Plans for 42,000 new homes aim to meet future demand and stabilise the market.
Queensland / Brisbane
- Median house price: $973,534 (+13.5% annual change)
- Median unit price: $661,925 (+19.4% annual change)
- Regional house price: $675,321 (+12.1% annual change)
- Regional unit price: $661,792 (+11.2% annual change)
Brisbane’s property market is booming. Dwelling prices rose 14.5% in 2024. Its affordability and population growth make it a top choice for investors.
Western Australia / Perth
- Median house price: $830,965 (+24.0% annual change)
- Median unit price: $572,007 (+25.2% annual change)
- Regional house price: $547,602 (+19.4% annual change)
- Regional unit price: $354,055 (+15.5% annual change)
Perth led Australia’s property market in 2024. House prices rose 24%, while unit prices increased by 25.2%. Limited supply and high demand are driving prices to record highs.
New South Wales / Sydney
- Median house price: $1,473,775 (+4.9% annual change)
- Median unit price: $860,849 (+3.5% annual change)
- Regional house price: $769,593 (+3.5% annual change)
- Regional unit price: $610,461 (+3.9% annual change)
Sydney prices have risen steadily in 2024. Growth slowed in the last quarter, with a 0.5% dip in Q4. A low vacancy rate of 1.7% and high demand keep prices strong.
2025 Australian propery Market Forecast
The property market is set to grow in 2025. Domain www.domain.com.au forecasts house prices will rise 4-10% across Australia. Interest rate cuts, expected by major banks, could boost buyer confidence and market activity.
Investment Opportunities for 2025
In 2025, smart investors will look beyond their local markets. Diversifying across states and cities can reduce risks and maximise returns. Engaging a Qualified Property Investment Advisor (QPIA) agent can help identify high-growth areas.
Population growth, new infrastructure, and strong rental demand will shape the market. By focusing on these factors, investors can make informed decisions and succeed in Australia’s property market.
For some more detailed advice on where to buy an investment property, have a look at our article https://www.prospaproperty.com.au/2021/where-to-invest-in-property/
