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W HAT WILL HAPPEN TO PROPERTY AFTER FREEDOM DAY?
h OUSING DOWNTU r N r EVE r SES IN FEB r U arY, WIT h MELBOU r NE & h OBar T LE a DING
T h E WaY
BY CORELOGIC
CoreLogic’s national Home Value Index posted a 0.3% rise in February, breaking the short and shallow downturn that lasted just three months and dragging the national measure of home values -0.4% lower.
The February rise was subtle, but broad based, with every capital and ‘rest-of-state region except Darwin (-0.1%) and Regional Victoria (flat) recording a monthly rise in values.
The month also marked the start of what could be an inflection in growth trends:
• Melbourne and Hobart led monthly gains. The largest month-on-month change across the capitals was recorded in Melbourne and Hobart (both up +0.4%) where home values have previously been among the weakest. For Melbourne, the lift breaks a streak of ten consecutive months of falling home values.
• Conversely, the mid-sized capitals of Brisbane, Perth and Adelaide have lost their mantle as the strongest growth markets.
With a monthly change of 0.2% to 0.3%, the mid-sized capitals were outpaced by Melbourne and Hobart. Adelaide and Brisbane are still leading rolling quarterly growth trends, up 1.2% and 0.9% respectively, but Perth’s value growth has slowed more sharply with downward revisions over recent months dragging the quarterly change to just 0.3%.
• The return to growth across Sydney and Melbourne is being driven by the more expensive end of the market , with upper quartile house values leading the monthly gains in both cities after high-value markets recorded the sharpest declines. This stronger performance is in line with earlier research from CoreLogic, which highlighted that premium housing markets in Sydney and
Melbourne have historically been the most sensitive to rate cuts.
CoreLogic’s research director, Tim Lawless, said the improved housing conditions have more to do with improved sentiment than any immediate improvement in borrowing capacity.
“Expectations of lower interest rates, which solidified in February, look to be flowing through to improved buyer sentiment.
“Along with the modest rise in values, we have also seen an improvement in auction clearance rates, which have risen back to around long-run average levels across the major auction markets.”
Regional housing conditions continued to show a stronger growth trend relative to the capital
city counterparts in February, with values across the combined regionals index rising 0.4% over the month and 1.0% over the rolling quarter – compared to the 0.3% monthly rise and -0.4% quarterly fall seen in capital city values. However, there has been some diversity in these trends, with the monthly change favouring Sydney, Melbourne and Hobart over their regional counterparts.
Improved market conditions may also be supported by a slowdown in the flow of freshly advertised ‘for sale’ listings. Counts of new listings coming to market across the combined capitals were tracking -4.7% lower than a year ago over the four weeks to February 23, and -1.5% below the previous five-year average.
“Although total advertised supply levels are almost 1% higher than
a year ago, listings remain -7.9% below the previous five-year average and the reduced flow of fresh stock to market could be supporting some upward pressure on prices, especially if buyers are becoming more active amid higher sentiment and lower rates,” Mr Lawless said.
VIEW OF THE CENTURY
W haT’S STOPPING YOU
T h IS YE ar ?
BY CHRIS GRAY, CEO, YOUR EMPIRE
The pain of making a poor financial decision often outweighs the pleasure of making a positive one, which is why most people sit on the fence, waiting for the perfect environment before deciding to buy or sell property.
To be fair, in the last few years, we have had a number of national and global events that have created more uncertainty than normal. Uncertainty can be an excuse for some, but for others, it leads to opportunity.
Just in case the past few years have distorted your memory, we’ve seen:
• Rising interest rates
• Falling property prices
• A banking Royal Commission
• A global pandemic
• A property market recovery
• A strong rental market
• A federal election
• Interest rates peaking
• Interest rates now dropping
That’s exactly the point – there is never a "perfect" time to buy property. I've been investing for over 30 years, and I have never seen a time where everything aligns
perfectly. If you wait for certainty, you will likely never take action.
Now, we are shifting from a cycle of rising interest rates to interest rates on hold, and now, decreasing interest rates over the next few years. The recent rate drop has already started stimulating the market, as it reduces the cost of ownership and improves borrowers' serviceability, meaning they can afford to buy a more expensive home or investment property.
Many people use an election as an excuse to delay purchasing until they know who will be in government. The last time this happened, Labour suggested they might remove negative gearing, which should have encouraged buyers to act before the election since existing negative gearing benefits would have been grandfathered. However, most people ignored logic, waited, and would have lost out had the
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policy changed. This highlights an important lesson: most people don’t make decisions based on logic, and that’s why most don’t accumulate enough wealth for retirement. Those who think contrarian to the crowd and take action are the winners over the long term.
While the market remains strong, here are three simple rules I always follow for buying property:
1. Buy when you can secure a mortgage from the bank.
2. Buy the right property for a reasonable price.
3. Ensure you have a cash buffer to cover any short-term emergencies.
Often, the real upswing in the market happens in the New Year. People have taken a break, reassessed their goals, and are ready to take action. We've seen it before: the market picks up after an election, then really takes off in January and February.
The key lesson? Property is a long-term game. Historically, prices rise over time if you can hold on long enough. I’ve spoken to hundreds, if not thousands, of people who regret not taking action earlier. The only way to get ahead is to be in the market. So, what type of buyer are you?
ABOUT THE CONTRIBUTOR
Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney
W haT T h E L aTEST h OME BUILDING DATA TELLS US
BY VIVIEN TOPALOVIC, REALESTATE.COM.AU
The latest building approvals show more new homes are getting the green light, with new apartments driving the highest level of approvals since December 2022.
According to data from the Australia Bureau of Statistics, a total of 16,580 residential dwellings were approved in January 2025, a 6.3% increase from December 2024.
In the three months leading to January, approvals were 14% higher than the same period the previous year.
“Approvals for private dwellings excluding houses, drove the overall rise, up 12.7%, to the highest level since December 2022,” ABS head of construction statistics Daniel Rossi said.
“Private sector house approvals were also up 1.1%.”
Housing Industry Association economist Maurice Tapang said the increase in approvals signal “positive momentum” for new homes.
“New housing approvals had been strengthening on the back of low levels of unemployment, recovering real wages and ongoing strong population growth, even before the first interest rate cut was delivered,” Mr Tapang said.
“The rise in home building activity will be more evident in states and regions with lower land costs and lower taxes on new homes, while those with higher tax imposts will remain weak.”
According to the data, a large number of apartment buildings approved in NSW drove a majority of the growth.
Property Council Group executive policy and advocacy Matthew Kandelaars said while this was positive news, more needs to be done as the figures still fall short of their historic high.
“We are approving thousands of fewer apartments now than a decade ago. Regulations, opportunistic taxes and low productivity are hurting our ability to build the homes Australians need,” Mr Kandelaars said.
“Apartments take nearly three years from approval to completion and face many hurdles from high construction costs, labour shortages and tax policies that deter investment and put project feasibility under pressure.”
Urban Development Institute Australia NSW CEO Stuart Ayres echoed similar sentiments, noting that “it’s too early to say” if the state has turned the corner in the apartment market.
Approvals for detached houses rose by 6.1% compared to the previous year, with Western Australia, South Australia and Queensland leading the charge with 29.2%, 27.5% and 13.9% respectively.
Whereas NSW and Victoria saw declines by 9.5% and 0.9%.
“We need more of all types of homes, going up in one type and backwards in another is not what NSW needs,” Mr Ayres said.
Master Builders Australia chief economist Shane Garrett said while private dwellings, excluding houses, numbers were positive, more work is needed to meet National Housing Accord targets.
“Under the National Housing Accord, an average of 240,000 new homes are required per year. We are still far short of this,” Mr Garrett said.
ALL EYES ON THE FEDERAL ELECTION
In the lead up to the federal election set to take place sometime before May 17, Master Builders Australia launched its federal election platform, which outlines specific policies to address the housing crisis.
These include focusing on critical infrastructure, improving skills among workers and investing in future building technologies and sustainability.
The building and construction association has targeted 40 seats across the country with a high share of building and construction businesses.
It also plans to release a weekly scorecard on how major parties are performing against their housing solutions checklist.
“Policies must be supply focused by bringing down construction costs, boosting productivity and ensuring land is shovel ready,” Master Builders Australia CEO Denita Wawn said.
“Housing is not a political football to be passed around from local, state and federal governments. It requires a coordinated approach with the federal government leading the way.”
Click here to read the full article
W haT T h E L aTEST a UST ra LI a N P r OPE r TY
M
ar KET T r ENDS ME a N
FO r YOU
What’s Happening in the Market? The Australian property market never sits still. Interest rates, buyer demand, and lifestyle shifts continue to shape property prices and investment opportunities. Whether you’re buying, selling, or investing, keeping up with these trends can help you make smarter decisions.
INTEREST RATES AND
HOUSING
AFFORDABILITY
The Reserve Bank of Australia (RBA) recently cut the cash rate to 4.10%, the first reduction since 2020. While this has made borrowing a little cheaper, it hasn’t completely solved affordability challenges. Even with lower rates, many Australians still struggle to save for a deposit, and the cost of housing remains a major hurdle.
The impact of this rate cut depends on where you’re looking to buy. In Sydney and Melbourne, property prices have steadied, with Melbourne even recording a 0.4% price increase in February 2025 after ten months of decline. Meanwhile, smaller capital cities and regional areas are seeing continued price growth – Adelaide and Brisbane, for example, posted quarterly increases of 1.2% and 0.9%, respectively.
The rate cut has also boosted consumer confidence by 4w%, but experts caution that while
borrowing may be slightly easier, it’s not a silver bullet for affordability. Supply shortages and long-term economic trends will continue to shape the market.
THE SHIFT TO REGIONAL AND COASTAL LIVING
Australians are still looking beyond big cities for better value. More people are moving to regional and coastal areas, chasing lifestyle benefits, work-from-home flexibility, and more affordable housing. As a result, property prices in these areas continue to climb, with some outperforming metro markets.
INVESTORS ARE BACK
With rents at record highs and vacancy rates at historic lows, investors are making a comeback. High-yield suburbs, where rental demand far outstrips supply, are drawing strong interest. Investors are focusing on areas with solid rental returns and long-term growth potential, capitalising on strong demand from tenants.
THE RISE OF GREEN HOMES
Energy efficiency is no longer a ‘nice-to-have’ – it’s becoming a priority. Buyers are actively seeking sustainable homes with solar panels, smart energy systems, and eco-friendly materials to cut long-term costs. With rising energy prices, properties that offer lower running costs are gaining a competitive edge in the market.
WHAT DOES THIS MEAN FOR YOU?
The market is shifting, but the fundamentals remain the same – the right knowledge leads to better decisions. Whether you’re buying, selling, or investing, understanding market trends can give you a competitive advantage.
If you want tailored insights or expert advice, chat with a Century 21 agent today. With deep local knowledge and a finger on the pulse of market changes, they can help you plan your next move with confidence. Visit C21.com.au/your-local-c21
