VIEW Magazine | Autumn | 2025

A POSITIVE YEAR

There are already positive signs in the many property markets that make up our country and I like to believe that Australian homebuyers have reasons to be optimistic, and hopefully satisfied, in 2025. These factors quickly come to mind.

Interest rate cuts: Lower interest rates are anticipated outcomes of Reserve Bank of Australia (RBA) decisions this year, and the flow on will be easier access to financing and more buyers able to enter the market. They’ll have greater purchasing power and mortgage repayments hopefully will reduce.

Initiatives introduced: The Australian government has introduced several initiatives to support property buyers and sellers, aiming to address housing affordability and stimulate the real estate market. The Housing Australia Future Fund (HAFF) is designed to increase housing supply and provide more buyer options. There are grants and stamp duty concessions to assist first-time buyers to enter the property market, reducing initial financial barriers. Other buyer/seller initiatives include affordable housing programs and green building incentives.

Build to Rent legislation, which aims to deliver 80,000 rental homes over the next decade, is a step in the right direction. While it addresses the nation’s housing crisis by encouraging institutional investors to deliver affordable rental housing by offering tax benefits, the government needs to work smarter with the smaller private investors who will continue to be an integral part of the solution and not reduce supply from this sector.

Regional growth opportunities

Regional population growth continues to be higher than for capital cities on a percentage basis. Regional markets offer diverse housing choices that cater to different needs. They give affordable options outside major cities, offering lifestyle benefits and often better value. These markets have a track record of outperforming their city counterparts.

Stable market conditions

Stabilising prices and stable interest rates serve to increase buyer confidence and reduce risks in a healthy and dynamic, but balanced, property market. It’s a promising real estate landscape.

Steady increase in property prices: On the back of resilience, growth this year is supported by tight supply and anticipated interest rate cuts, enhancing buyer confidence and affordability.

Emerging property markets: New markets, both in metropolitan and regional areas, are gaining attention for their affordability and lifestyle appeal and can expect significant growth and a diverse buyer range. Non-capital and regional demand appear strong. Examples are Townsville, Wide Bay, Sunshine Coast and Darling Downs in Queensland, Albury/Wodonga on NSW/VIC border and Mandurah in WA, which are popular with homebuyers seeking value and quality of life.

Strength in high-end property market: The luxury market is continuing to perform well, indicating sustained demand.

Positive outlook for development: While not without its challenges, property development has a positive outlook supported by encouraging government policies and a focus on meeting housing demand driven by population growth and changing lifestyles.

Are we still ‘the lucky country’?

I like to think so. Despite the cost of living, economic performance and property price pressures, Australia is a great country. We have a lot of natural advantages, including geographical location, natural resources and weather. Our economy is diverse and resilient, we have a relatively low unemployment rate, a high standard of living and a stable democratic government.

Given many positive factors, 2025 is shaping up to be a year of opportunities for Australian homebuyers, making it a great time to invest in property.