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The first quarter of 2025 has brought a diverse mix of conditions across Australia’s property markets, according to the latest Property Investment Professionals of Australia (PIPA) National Market Update.
PIPA chair Nicola McDougall said NSW is showing early signs of recovery, helped by a recent interest rate cut, stabilising property values and increasing buyer confidence.
Quarterly, Sydney recorded a decline of 0.9 per cent to February 2025; however, these values were still up 1.1 per cent annually. Renewed buyer confidence has been signalled, particularly in the upper quartile despite prices remaining 1.6 per cent below the peaks seen in September 2024.
“The property market in Victoria is showing specific pockets of opportunities despite challenges like policy uncertainties,” McDougall added.
“Melbourne is particularly attractive due to affordable housing options, with increasing demand for well-located units in areas like Carlton.”
Queensland’s property market remains robust, though its pace of growth has eased.
“Regional areas like Mackay and Townsville lead with significant increases, while Brisbane sustains positive growth trends, especially in units and townhouses,” McDougall said.
“Population growth, limited housing supply, and rising construction costs continue to drive demand.
“Meanwhile, Adelaide remains a key market for investors due to its affordability, diverse property options, and robust economic growth fuelled by large-scale projects like the AUKUS submarine initiative.”
Perth, she said, continues to perform strongly and has recorded the highest annual growth of any Australian capital.
“Despite moderating growth, limited supply, high rental yields and affordability, compared to other states, ensure sustained demand in this market,” McDougall said.
“Canberra’s market shows early signs of balance as it adjusts to economic shifts. Investors may face regulatory challenges, yet steady demand and strong job security underpin a positive outlook for the property market.
“Tasmania’s property market is experiencing a recovery, with increased sales activity and infrastructure investments driving confidence. However, the state’s rental market faces affordability challenges, necessitating policy action to address the widening gap between supply and demand.”
Showing more diversity in the Australian property market was the latest Cotality data which found that the lower quartile of the housing market has been a key driver in capital growth over the past 12 months.
Tim Lawless, Cotality’s research director, said in spite of economic headwinds, strong capital growth has “clustered” in city outskirts where home values are “just” in reach for home buyers.
“Households are making pragmatic decisions in response to tighter borrowing capacity and higher mortgage costs,” Lawless said.
[RELATED: Fringe suburban markets outpace inner-city counterparts]
