Navigating Australia's Housing Market in 2025: Key Trends and Insights

Source: CoreLogic

The Australian housing market remained largely steady in January 2025, with national dwelling values dipping slightly by -0.03%, driven by capital cities experiencing declines. However, regional markets continued their upward trajectory, reflecting shifting market dynamics.

Melbourne (-0.6%), the ACT (-0.5%), and Sydney (-0.4%) saw notable declines in home values, while Hobart remained stable. Brisbane and Perth continued growing, though momentum has slowed, particularly in detached housing. Perth's quarterly growth dropped from 7.1% in June 2024 to just 1.0% in the three months to January 2025. Adelaide led capital cities with a 4.8% gain over the past six months.

Regional Australia saw home values rise by 0.4% in January, hitting new record highs. This trend is supported by:

• Affordability: Regional properties remain more accessible than capital city counterparts.

• Internal Migration: A second wave of migration is bolstering demand.

• Hybrid Work: ABS data shows 36.3% of workers still operate remotely, reinforcing regional living appeal.

Annual national home value growth slowed from 9.7% in February 2024 to 4.3% in January 2025. Melbourne (-3.3%), the ACT (-0.5%), and Hobart (-0.4%) recorded annual declines, while Sydney saw modest 1.7% growth.

The annual number of home sales peaked at nearly 535,000 in October 2024 but has since declined to 526,000 in January 2025, indicating a cooling market and potential buyer hesitation.

What This Means for Buyers and Investors

• For buyers, slower growth and potential interest rate cuts create opportunities to enter the market with less competition.

• For investors, regional markets offer promising prospects, but strategic suburb selection is crucial. With capital cities facing headwinds, high-demand rental areas should be prioritized.

The market is evolving. While short-term growth is slowing, long-term fundamentals remain solid. With interest rate cuts likely, now is the time for buyers and investors to reassess strategies and position themselves for future opportunities.

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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