Australia’s Property Market in 2025: Why Experts Predict Prices Will Keep Rising

Source: Corelogic

As 2025 unfolds, optimism is high in Australia’s real estate sector. CoreLogic’s annual report, Decoding 2025, reveals that 65% of industry professionals anticipate rising house prices, with Queensland standing out as a prime market for growth. But what’s fueling this momentum, and how will it shape opportunities for buyers, investors, and industry professionals?

Despite some early-year softness, experts predict a strong rebound later in 2025. Key drivers of this upward trend include:

1. Affordability Adjustments – While housing affordability remains a challenge, easing property prices in some cities and rising incomes are creating new opportunities for buyers.

2. Interest Rate Cuts on the Horizon – With economic recovery setting the stage, potential interest rate cuts in 2025 could make borrowing more attractive.

3. Migration Boost – Queensland is experiencing strong internal migration, with 70% of surveyed professionals expecting price growth in the state.

   

Melbourne’s median dwelling value currently sits 6.4% below its 2022 peak, but many industry insiders foresee a comeback. Affordability improvements and renewed buyer demand could drive a market recovery in the city by late 2025.

Eliza Owen, CoreLogic’s Head of Research, explains:

“Despite some softening in early 2025, conditions are expected to improve later in the year alongside lower interest rates, higher real income growth, and improved affordability.”

While property values are expected to rise, the pace of increase may be slower than the 4.9% growth recorded in 2024.

Beyond market trends, real estate professionals are sharpening their business strategies to stay competitive. According to the Decoding 2025 survey:

• 84% prioritize nurturing client relationships to drive long-term success.

• 83% focus on converting website traffic into listings for business growth.

• 80% emphasize strengthening their prospecting culture to win more deals.

• Digital transformation is key – leveraging AI, data analytics, and social media is now a top priority for agents seeking a competitive edge.

Josh Symons, CoreLogic’s Head of Real Estate Solutions, highlights the role of technology:

“By understanding client behaviours and leveraging AI tools, agents can deliver personalised, timely outreach that builds trust and drives results.”

While 2025 presents affordability challenges and supply constraints, the overall outlook remains positive. With potential interest rate cuts, income growth, and digital innovations shaping the industry, the real estate sector is poised for an eventful year.

If you have any questions or need any information about Australian property, buying Australian property, selling property or looking for property management, you can leave a message or WhatsApp +61 481 988 806 to contact real estate expert, Entre Shield Property, we have the most professional sales consultants to answer any related questions for you!

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