Australian Property Market Trends 2025

The Australian property market in 2025 is showing signs of a steady recovery and growth. This is largely driven by improved borrowing conditions, population growth in major cities, and a tight housing supply. Houses have seen a significantly better performance compared to units, with Sydney showing the largest gap in value growth.

Key trends to watch:

• House Price Growth: Since March 2020, capital city house values have increased by nearly 34%, while unit values have only risen by just over 11%.

• Capital Cities Leading Growth: Cities like Perth, Adelaide, and Brisbane are experiencing strong growth due to their relative affordability and high demand.

• Slowing Rental Market: Rental inflation has slowed down due to affordability pressures, causing renters to spend a record-high portion of their income on rent.

Overall, the Australian property market is expected to see moderate but sustained growth through the end of 2025. The total value of residential real estate in the country is now approaching an impressive $12 trillion.