End-of-Year Wrap: What Were the Property Trends in 2025?
Introduction:
As 2025 draws to a close, the Australian property market has experienced one of its most dynamic years yet. From soaring prices to changing buyer priorities, this year has reshaped how Australians think about home ownership. Whether you’re a first-home buyer, investor, or simply curious about market trends, here’s a Q&A breakdown of what defined real estate in 2025—and what might be coming next.
Q: How did property prices perform in 2025?
A: Prices soared across the country. House prices rose by 9% nationally, while units increased by 7%. Brisbane became the nation’s second-most expensive capital, and Adelaide and Perth also climbed into higher-priced territory. Despite three interest rate cuts, rising prices offset any savings, leaving buyers feeling the pinch.
Q: What drove these changes in buyer behaviour?
A: According to Domain’s End of Year Wrap 2025 report, a major reshuffle in capital city markets shifted buyer priorities. Supply constraints remained a key pressure point, and buyers adapted by exploring more affordable and versatile housing options.
Q: Which property types gained popularity?
A: Detached houses became harder to afford, so buyers turned to townhouses, duplexes, and units. Searches for “duplex,” “dual living,” and “granny flat” surged nationwide, with “granny flat” and “dual” ranking among the top five most-searched terms.
Q: Did interstate buying remain strong?
A: Not quite. While regional markets attracted some interest, most buyers preferred to stay within their own state. For example, nearly half of regional WA and SA enquiries came from Perth and Adelaide residents. Regional NSW and Victoria saw about a quarter of searches from Sydney and Melbourne buyers. However, overall regional search activity softened as city living regained appeal and remote work declined.
Q: What lifestyle features were most in demand?
A: Premium buyers continued to chase lifestyle amenities like pools, waterfront views, and scenic outlooks. However, terms like “water view” and “beach” slipped in popularity, suggesting a slight shift in priorities. Design-focused searches grew, with “art deco” homes climbing from 12th to 6th place.
Q: What were the most popular home configurations?
A: · Detached houses: 4 bedrooms, 2 bathrooms, 2 car spaces (4/2/2) dominated searches in most capitals and regional areas.
· Units: 2 bedrooms, 1 bathroom, 1 car space.
· Townhouses: 3 bedrooms, 2 bathrooms, 2 car spaces.
Q: What’s next for the property market?
A: Price growth may slow, but significant drops aren’t expected soon. Strong population growth, low vacancy rates, and persistent undersupply—combined with high construction costs—are likely to keep prices buoyant through the first half of 2026. Steady interest rates could help cool
late-year heat, especially as investors compete with first-home buyers supported by government incentives.
Conclusion:
2025 was a year of adaptation for Australian property buyers. With affordability challenges and lifestyle shifts shaping demand, buyers embraced smaller homes, multipurpose living, and creative solutions to secure their place in the market. Looking ahead, while growth may ease, the fundamentals suggest continued strength into 2026. For anyone planning their next move, staying informed and flexible will be key to navigating this evolving landscape.