June 2025 Property Market Insights: What's Driving Buyers, Sellers & Investors Right Now?
Q: What’s the current state of the Australian housing market?
A: House prices are still rising across most capital cities, but the pace and pattern of growth vary. Perth, Brisbane, and Adelaide are leading the charge due to affordability, population growth, and limited housing supply. Meanwhile, growth in Sydney and Melbourne’s inner and middle suburbs is more subdued.
Q: Are buyers changing their behaviour due to affordability issues?
A: Yes. Economist Cameron Kusher noted a growing shift toward outer suburbs and regional growth areas. These locations, once seen as too remote, are now drawing more interest—especially from first-home buyers and value-focused investors—thanks to improved infrastructure, lifestyle appeal, and flexible work options.
Q: What’s happening with housing supply and listings?
A: Listings are still well below the five-year average in most capital cities. Many would-be sellers are holding off, either uncertain about their next move or wary of selling in a high-interest-rate environment. This low supply is fuelling strong competition for properties that do hit the market.
Q: How are interest rates affecting the market?
A: Interest rates continue to impact buyer confidence. While a rate cut is expected later this year or early next, Kusher warned against expecting ultra-low rates again. The neutral cash rate is likely to hover around 3.5%, setting a new baseline for borrowing costs.
Q: Which areas are performing well?
A: Brisbane remains a standout for its relative affordability and population growth. Regional hotspots like the Sunshine Coast, Geelong, and parts of NSW are also seeing renewed interest due to lifestyle advantages and price appeal.
Q: What about auction activity?
A: Auction volumes have increased, and clearance rates are sitting steadily in the mid-60% to low-70% range. While not explosive, this shows buyer confidence is holding up—especially in tightly held markets.
Q: How’s the rental market tracking?
A: The rental market remains tight, with low vacancy rates and rising rents. These conditions are drawing investors back in, particularly in areas where rental yields are attractive and housing supply remains limited.
Q: Are new homes being built fast enough?
A: Unfortunately, no. Construction of new homes is being held back by high building costs, labour shortages, and slow planning approvals. Without improvement in these areas, the supply shortage will likely worsen.
Q: How are first-home buyers responding to these challenges?
A: They’re adapting. Kusher described them as pragmatic—adjusting their expectations, targeting affordable suburbs, and moving further out to secure a place in the market. They’re playing the long game.
Q: What’s the sentiment among property buyers and investors right now?
A: Buyer’s advocate Cate Bakos observed a strategic return to market. Buyers and investors aren’t rushing in out of fear, but rather making calculated moves, aware that the longer they wait, the tougher it might become to buy well.
Q: Is current price growth sustainable?
A: Yes, according to Bakos. She said the growth is underpinned by genuine demand and tight supply—not by risky lending or speculation.
Q: What advice can buyers follow when going to Auction?
A: Be prepared. Know the property's value, set your limit, and don’t feel pressure to win every auction. “You just need to win the right one.”
Q: Any emerging trends worth noting?
A: Yes. There’s growing interest from Perth investors looking to diversify into east coast markets. Some are even shifting money from shares into property, seeing real estate as a more stable investment.
Q: What’s the overall outlook for the property market?
A: The market isn’t booming, but it’s far from stagnant. Buyers are returning with more strategy, clarity, and confidence—and that’s what’s driving movement in 2025.