Australia’s property market has closed out the 2024–25 financial year on a high, with momentum building across key regions and signs pointing to a confident rebound in the year ahead, according to the Real Estate Buyers Agents Association of Australia (REBAA).
REBAA President Melinda Jennison said from million-dollar median prices in Brisbane to unit surges in Tasmania and renewed confidence in Melbourne, REBAA’s nationwide review reveals a dynamic market fuelled by migration, infrastructure projects, and resilient buyer demand.
“NSW’s property market ends the financial year with solid gains and signs of fresh momentum, as buyer activity picks up and regional hotspots surge ahead,” Ms Jennison said.
“Easing rental pressures, resilient first-home demand, and key infrastructure investments are setting the stage for a stronger, more balanced 2025–26.”
The Melbourne property market closed out the financial year on a promising note, with renewed buyer confidence and strong rental demand signalling a fresh wave of opportunity, she said.
“With stabilising rates, increased migration, and more stock hitting the market, the city is shaping up as a prime spot for savvy investors and first-time buyers alike,” she said.
“Brisbane’s housing market has hit record highs, as strong migration and investor confidence pushed prices past the million-dollar median mark.
“With tight rental conditions, rising interstate interest, and Olympic-fuelled infrastructure on the horizon, the city’s growth streak shows no signs of slowing.”
Ms Jennison said Tasmania’s housing market is gaining serious traction in 2025, with buyer demand and competition pushing sales volumes and prices higher across much of the state.
“From surging interest in units to packed open homes and tightening supply, momentum is clearly building as we head into the second half of the year,” she said.
“Tasmania’s property market is making a strong comeback, with rising sales and solid price gains driven by buyer confidence and fierce competition across key regions.
“Surging interest in units and growing energy at open homes signal a renewed momentum heading into the second half of 2025.”
Ms Jennison said Perth’s property market hit new highs, with strong buyer demand and limited supply keeping sales activity buoyant despite a softer growth pace.
“Rising values, improved affordability, and renewed interest from upgraders and investors have reignited confidence heading into the new financial year,” she said.
“Canberra’s property market is turning a corner, with four straight months of price growth and a new wave of first-home buyers re-entering the scene. “Backed by interest rate cuts, planning reforms, and major projects like the expanding light rail, the capital is quietly setting the stage for a confident comeback.”
NEW SOUTH WALES
REBAA NSW State Representative Linda Johnson said as the 2024–25 financial year draws to a close, the New South Wales real estate market reflects a period of transition.
“After a strong start, momentum has moderated in recent months, shaped by ongoing cost-of-living pressures, interest rate anticipation, global uncertainty and a lower-than-average supply landscape – 14% below previous five-year average,” Ms Johnson said.
“Both Sydney and regional markets have followed distinct but related paths, with resilience evident across much of the state.
“In Sydney, property values experienced modest, yet positive growth overall. House prices increased by approximately three to four per cent over the year, while apartment values lifted slightly less, by around two to three per cent.
“Strong performance has also been noticed in the premium property segment, although growth across the entire market continues to be driven primarily by the more affordable end.
“While the first half of the financial year saw buyer confidence return amid expectations of interest rate cuts, those expectations were tempered in early 2025 as inflation proved more persistent than forecasted.
“Rental markets in the capital showed signs of relief. After record-tight vacancy rates in 2023, Sydney saw a gradual easing, with over a third of suburbs recording rent declines in recent months.
“Increased investor activity and a small uplift in new rental supply helped reduce pressure in key inner-city and middle-ring areas. In saying that, Cotality’s metrics show that growth is still above the pre-COVID average. We are yet to see the impact of the controversial and significant new rental reforms on the market – watch this space!
“For first home buyers, despite record figures around lack of housing and affordability, buyer numbers have remained resilient. We could see them become more active in the next financial year due to a combination of government incentives, forecasted lowering interest rates and lower mortgage costs.
“In regional NSW, growth was more stable and, in some cases, stronger than in metropolitan areas. Lifestyle-driven demand, particularly in the Hunter Valley, Illawarra and parts of the Central West, kept prices elevated. These regions benefited from relative affordability, improved infrastructure and ongoing hybrid work arrangements. Annual growth across regional housing markets ranged from three to five per cent, depending on location and property type.
“Over the course of the year, broader structural trends became more pronounced. Population movement from metro to regional areas remained significant, as buyers sought space and value. At the same time, state government planning reforms and infrastructure investment in Western Sydney and select regional hubs signalled a longer-term shift toward decentralisation.
“Looking ahead, the NSW market enters FY 2025–26 with a sense of cautious optimism. Interest rates remain a key variable, but improving rental yields and easing construction bottlenecks could support further stability.
“Overall, while price growth may remain subdued in the short term, both capital city and regional markets are well-positioned for sustainable performance in the year to come. We anticipate the second half of the next financial year to kick!”
VICTORIA
REBAA Victoria State Representative Matt Scafidi said the 2024–25 financial year has been a dynamic and transitional period for Melbourne’s property market.
“While it lacked the explosive growth seen in other states like Queensland and Western Australia, Victoria has remained a market of opportunity — particularly for discerning buyers with long-term outlooks,” Mr Scafidi said.
“Following the post-COVID surge, the early part of FY25 was marked by cautious sentiment. A series of interest rate rises, and cost-of-living pressures, tempered buyer demand and saw vendors adjusting their price expectations, creating a more balanced playing field. This period provided ideal conditions for buyers, with more negotiable terms, reduced competition, and better value available in many Melbourne suburbs.
“As the year progressed, several key trends began to emerge. Notably, migration into Victoria increased substantially, boosting demand for both rentals and entry-level homes. At the same time, tight rental vacancy rates pushed yields higher, giving investors reason to re-enter the market – particularly in the inner- and middle-ring suburbs where rents have grown significantly.
“The year also saw many investors exiting the market, driven by rising costs, stricter tenancy regulations, and increased land tax obligations. While this placed further strain on the rental market, it also led to an uptick in available stock – particularly in apartment markets – opening up excellent opportunities for both homebuyers and strategic investors.
“On the ground, we saw a growing divergence in buyer behaviour. Well-presented, well-located homes continued to attract strong interest, often selling quickly or under competitive conditions. However, properties with flaws – whether structural, location-based, or simply overpriced – sat on the market longer and sold with negotiation.
“With interest rates appearing to stabilise and buyers slowly regaining confidence, we’re now seeing momentum build into the new financial year. Importantly, Melbourne’s relative affordability compared to other capitals, particularly Sydney and Brisbane, positions it as an attractive option for both local and interstate buyers.”
“FY225-26 is shaping up to be a year of renewed opportunity, and for those ready to act, Melbourne remains a city rich in potential.”
QUEENSLAND
REBAA Queensland State Representative Joanna Boyd said Brisbane has finished the financial year on a high note, continuing to stand out among Australia’s capital cities for its robust property market performance.
“Despite the impact of inflationary pressure, interest rate uncertainty, and high cost-of-living concerns, Brisbane’s housing sector has remained remarkably resilient, driven by low supply, strong migration, and rising interest in the first home buyer and investor sectors,” Ms Boyd said.
“According to Cotality, Brisbane’s median house price crossed $1 million for the first time, settling at $1,000,422. Apartment values have also climbed significantly, with the median unit price now being $709,823. The city is now Australia’s second-most expensive capital city property market by median price, sitting behind only Sydney.
“Year on year, Brisbane’s median house price has surged by 6.2%, while the unit market saw an extraordinary increase of 11.8%. Demand for units has risen due to the difference in affordability between houses and units, with increased interest in the sub-$700,000 bracket close to the CBD by first-time buyers and investors.
“Demand remains strong for houses in the more affordable or high-growth markets, supported by a mixture of owner-occupiers and investors seeking value in a stabilising interest rate environment.
“Investor activity and enquiry levels picked up significantly when the RBA reduced the interest rate in May. New lending to investors in Queensland has reached record highs, and data from PropTrack confirms that 27% of buyer enquiries now come from interstate, many of whom are engaging buyers agents to secure properties in tightly held suburbs.
“Rental conditions remained tight throughout the year, with vacancy rates hovering at approximately one per cent. Rental markets remain tight due to a combination of low vacancy rates, strong population growth, and ongoing constraints in new housing supply.
“Brisbane’s continued rent growth reflects both population inflows and an undersupply of rental stock. This mismatch between supply and demand means rental pressures are unlikely to ease in the near future, especially in well-located, family friendly suburbs or high-demand school catchments.
“Looking forward, the key themes shaping Brisbane’s housing market are unlikely to change quickly. A persistent undersupply of homes, strong population growth, and a new wave of first-home buyers and investors are expected to keep upward pressure on prices.
“The city will also continue to benefit from infrastructure investment and the long-term pipeline associated with the 2032 Olympic Games. While some moderation may occur if interest rates fall further or supply improves, the city’s core fundamentals remain strong, positioning Brisbane once again as a standout performer going into the 2025–26 financial year.”
SOUTH AUSTRALIA
REBAA South Australia State Representative Jess Ellam said Adelaide has once again demonstrated its strength as one of Australia’s most stable and resilient property markets. “Steady population growth, tight housing supply, and consistently high rental demand have supported ongoing price growth across the city,” Ms Elam said.
“CoreLogic data shows Adelaide dwelling values rose 8.6% over the past 12 months. Unit values surged 18.5%, reflecting increasing demand from buyers seeking affordability and flexibility, while house prices climbed 15.1%, driven by low supply and strong buyer competition for well-located homes.
“The market remains highly competitive, with listing volumes well below average and a city-wide vacancy rate of just 0.7%—among the lowest in the country. As a result, rents have continued to rise, particularly in fringe and coastal suburbs. In Southern Adelaide, house rents jumped over 12%, and units rose by more than 8%, according to SQM Research.
“This has reignited investor interest. Over the past year, I’ve worked with a growing number of local and interstate investors targeting high-performing suburbs like Plympton, Glengowrie, Seaton, and areas along the southern coastline. These locations offer a strong combination of growth history, attractive yields, and future infrastructure upside.
“Despite consistent value increases, Adelaide still presents relative affordability, especially for buyers within 10-15km of the CBD. Purchasing quality property under $1 million remains a distinct advantage of our market.
“Ongoing infrastructure investment continues to support long-term confidence. Major projects such as the Torrens to Darlington (T2D) upgrade are reshaping key transport corridors and enhancing the appeal of previously underappreciated suburbs.
“Looking ahead, many economists are anticipating potential interest rate cuts from the RBA, which could bring renewed momentum from buyers. Market sentiment remains strong, and the imbalance between supply and demand suggests upward pressure on both property values and rents will persist.
“For investors, strong yields and low vacancy rates offer an attractive opportunity. For homebuyers and upgraders, timing and decisiveness will be key in an increasingly competitive environment.
“While Adelaide’s growth may not always make headlines, it remains steady and sustainable, supported by strong underlying factors. This makes it one of the most balanced markets in the country heading into FY 2025–26.”
TASMANIA
REBAA Tasmania State Representative Sam Spilsbury said the Tasmanian property market has shown a promising resurgence in the first half of 2025 with strong buyer activity and growing competition helping to drive both sales volumes and property prices upward across the state.
“Sales of residential houses increased by 3.7% across Tasmania for the quarter, representing a 5.3% lift compared to 2024,” Ms Spilsbury said. “In Launceston, house sales rose by 1.8%, reflecting steady buyer demand in the region. However, some parts of the state saw a softening in house transactions, with the North-West Centres and Hobart experiencing declines of 6.6% and 8.0% respectively.
“The statewide median house price rose by 1.6% this quarter to reach $620,000 – a 3.3% increase from the same period last year. Both Launceston and the North-West Centres recorded growth in median house prices, up 1.3% and 1.0% respectively.
“In Hobart, the overall median price declined by 1.3%, but there was growth within its subregions, with Inner Hobart rising by 3.0% and Outer Hobart increasing by 0.6%. Middle Hobart, in contrast, recorded a 3.0% fall.
“Demand for units, townhouses, and apartments — was particularly strong, with sales across Tasmania increasing by 13.9% this quarter and surging 25.3% compared to 2024. The North-West Centres led this growth with a 23.7% increase in sales, while Launceston saw a 9.1% rise. Hobart experienced a 7.0% decline, though the broader trend remains firmly positive.
“The median price for units, townhouses, and apartments statewide rose 2.9% for the quarter and 5.2% year-on-year. Hobart stood out with a 9.8% increase over the past year, while the North-West Centres followed closely with an 8.5% rise. “Launceston was the exception, recording a 6.6% decrease in the median price for other dwellings compared to last year.
“Beyond the numbers, buyer sentiment is shifting. Enquiry levels have grown significantly in recent weeks, with more attendees at open homes and increased urgency among buyers. The ongoing shortage of available properties has intensified competition, driving prices higher in several key markets.
“As a buyer’s agent on the ground, I’m seeing firsthand the renewed energy in the market. Buyer demand is high, and the limited supply of homes is creating competitive conditions that favour well-prepared and decisive buyers.”
WESTERN AUSTRALIA
REBAA Western Australia State Representative Peter Gavalas said Perth’s median house price continues to rise, although the rate of growth has slowed compared to 2024.
“Despite this, historically low levels of supply combined with strong demand have kept sales activity high,” Mr Gavalas said.
“The median house price in Perth increased by 0.6% in May and was 18% higher than the same time last year. The median unit price increased by 1.9% in May, which is 21% higher than a year ago, according to REIWA. Perth dwelling values are currently at a record high.
“There were 4,352 active listings at the end of May 2025, which is 6.6% lower than in April but 32.9% higher than a year ago. Sales activity has remained fairly consistent this year, averaging close to 900 sales per week. Listings have been trending down throughout the year, peaking at 5,138 at the end of March; current listings are 15.3% lower than that peak.
“The average number of days on market for houses in Perth is currently 13 days. While this figure has been trending downward, it is still 4 days slower than a year ago. Units are selling in a median time of 14 days, which is 3 days slower than last year.
“The rental vacancy rate at the end of May was 2.5%, up from a record low of 0.4% in March 2024. Perth’s median weekly rent was $675 at the end of May, 3.8% higher than the same time last year. The median number of days to lease a home is currently 17, just 1 day slower than the same time last year.
“New loan commitments in WA saw a 0.2% increase year-on-year. Investor activity declined by 1.0%, while owner-occupier activity rose by 0.9%. First home buyer finance fell by 0.9%, but recent changes to state government stamp duty thresholds for homes and land have sparked renewed interest in this segment of the market.
“The ongoing shortage of quality properties is maintaining upward pressure on prices, with high demand and increased competition driving values higher. The market segments showing the most strength and attracting multiple offers are typically the upgrader markets – buyers seeking to move into more aspirational suburbs, often within school catchments, closer to the city or water, or near key amenities.
“Investor activity has also increased recently. With property prices remaining robust and rental yields strong, Perth continues to be seen as an attractive investment location.
“Following disruptions earlier in the year due to State and Federal elections – as well as recent interest rate cuts – market confidence has rebounded. According to the latest REIA report, affordability has improved, and buyers appear to have shifted into higher gear with no signs of slowing down.”
ACT
REBAA ACT State Representative Claire Corby said the past financial year has been a measured one for Canberra’s housing market.
“Annual growth in Canberra remains on the softer side at –0.7% in the year to May 2025 (CoreLogic). Despite a gentle monthly uptick of 0.5% for houses, values remain roughly 6.4% below their mid-2022 peak,” Ms Corby said.
“Without a rental crisis, vacancy rates in the ACT have been hovering in the 1.5-1.8% range. Paired with rising holding costs (including land tax) and increased compliance, investors seeking strong yields have been shopping elsewhere.
“Buyer sentiment was understandably cautious, dampened by federal election uncertainty and elevated interest rates. However, the Reserve Bank’s first rate cut in February sparked renewed activity, particularly in the sub-$1m segment.
“Encouraged by both interest rate relief and ACT stamp duty concessions, first-time buyers have begun to re-engage in 2025 which has helped to drive four consecutive months of price gains.
“The financial year ahead will likely see Canberra continue in recovery mode. A renewed confidence is underpinned by stable public-sector employment and continued infrastructure rollout following the election result.
“The re-elected ACT Labor Party, now in its 24th consecutive year of power, continue to paint the town red with the light rail project. This tram line is poised to connect the Woden town centre and corridor suburbs when the next stage is complete, marking the end to a very disrupted civic centre this year as the light rail chomps its way down Commonwealth Avenue and over the lake towards Parliament House.
“On the policy front, sweeping changes to the ACT’s lowest residential zoning is making headlines. Once a final version has passed, this change in its best form could enable more ‘missing middle’ housing to transform suburban Canberra.
“Whether the ACT Government will acknowledge that prohibitively high Lease Variation Charges (LVCs) need to change will determine the level of impact of this proposed policy. As it currently stands, LVCs remain a significant cost barrier to small-to-medium density development.
“Canberra’s market remains steady as she goes.T he combination of rate cuts, first-home buyer incentives, evolving planning reforms and major infrastructure progress positions our capital for a cautious yet credible rebound.”
ENDS
For more information or to organise interviews with REBAA State Reps please contact:
Bricks & Mortar Media | media@bricksandmortarmedia.com.au
