Five property predictions for 2025
There’s no denying it’s been an interesting few years in the property market, with Covid-19 delivering a seismic shift that’s still rippling through the market even today.
But as we turn the page on another year, what’s the next 12 months likely to deliver the real estate realm?
Here are five property predictions for 2025…
Market to slow
No-one could have predicted the past few years in real estate with some sectors of the Australian market experiencing price growth beyond their wildest expectations.
And even rising interest rates did little to quell people’s enthusiasm for property. According to the latest data from CoreLogic, Australian residential real estate is collectively valued at $11.1 Trillion, which marks a milestone high.
For those already in the property market, these ever increasing values have been a boon, but for first home buyers and those looking to get back into property, that’s made the past couple of years particularly tough.
Not only do prices keep rising, but the ability to afford a loan is also getting harder. So what’s next? Well it’s likely that price growth will slow.
It doesn’t mean prices will necessarily drop, but in many areas the increases will likely moderate and won’t rise at such a fast pace.
Multispeed market to remain
That said, Australia isn’t a market that runs at one singular speed, with different areas experiencing price growth and contraction at different rates.
For example, Queensland and WA remain standout markets in terms of price growth and that’s likely to continue, with affordable markets among the most likely to keep enjoying price growth.
More listings on the market
Up until now demand for property has outripped supply, which has been part of the reason behind those increasing house prices.
But this year, we might just see a more balanced scenario with more properties coming to market.
Perhaps one of the biggest drivers of that trend will be the cost of living, with data beginning to indicate a rise in distressed sales.
Interest rates will finally drop
Interest rates have been a topic of conversation for months, and chances are 2025 is the year we will see the Reserve Bank of Australia start to reduce the cash rate.
Three of Australia’s Big 4 banks, (NAB, ANZ and Westpac) tip we’ll see our first interest rate cut in May, while CBA believes it could be as early as February.
Rental crisis easing
And finally, after a tough couple of years for renters, there’s a glimmer of hope on the horizon.
Not only is rental price growth slowing but the vacancy rate has also risen slightly, meaning there’s more stock available on the market, and rents aren’t rising as steeply as they were previously.
This increase in supply is largely being driven by renewed investor activity.
How we can help
If you’re considering buying or selling a property and seeking to understand the current market conditions, why not chat with one of our friendly agents to understand how we can help?
Or feel free to enter your address below to get your instant property estimate.
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
