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2025 Property Market Insights & Equity Opportunities for Homeowners

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Will Property Prices Keep Rising in 2025?

As cost-of-living pressures mount, there’s good news for homeowners: Australian property prices have been on a 21-month streak of growth, with total residential property value hitting a record $11 trillion, according to CoreLogic. Cities like Sydney, Brisbane, and Adelaide are at their highest property value levels ever.

However, recent data indicates a cooling market. National property values grew by just 1% in the September quarter—down from a 9.7% annual growth rate earlier this year. This suggests the pace of growth is slowing, attributed to increased listings and cautious buyer behaviour.

Key Drivers of 2025 Property Trends

  1. Supply and Demand:
    Property prices often depend on the balance between available listings and buyer interest. Low stock levels in cities like Perth, Adelaide, and Brisbane—currently more than 20% below the five-year average—have created a seller’s market, driving competition among buyers. Conversely, increased listings in other areas may ease upward price pressure.
  2. Interest Rates:
    The Reserve Bank of Australia (RBA) has held the cash rate steady since late 2023. However, many economists predict rate cuts in early 2025. Lower rates mean increased borrowing power, which could spark renewed buyer competition and further increase property prices.

What Rising Property Prices Mean for You

Rising property values can unlock untapped equity, presenting opportunities to achieve financial goals:

  • Invest in Property: Leverage your equity to expand your portfolio with an investment property.
  • Renovate Your Home: Enhance your property’s value further with upgrades.
  • Reduce Debt: Consolidate or refinance existing debts at lower rates.

Homeowners have seen significant gains over time; many have multiplied their property values within the life of a 30-year mortgage.

Associated Costs of Property Ownership

For first-time buyers or investors, understanding the costs is essential. These include:

  • Stamp Duty: Calculate based on property value. Exemptions may apply for first-home buyers.
  • Legal Fees: Cover conveyancing and other property-related legalities.
  • Inspection Costs: Ensure the property’s condition with pest and building inspections.

Looking Ahead

Economists anticipate a more gradual 5.6% national property price increase in 2025 (KPMG report). Whether you’re a seasoned investor or a first-time buyer, early planning is crucial to make the most of this trend.

Curious about your property’s equity or planning your next purchase? Let us help you navigate 2025’s market with confidence. Contact us today for expert advice and tailored loan solutions!

How prepared are you for your property purchase?

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A combination of factors are behind the movement in the Sydney property market, including:

  • Investors and those looking for interest-only loans finding it more difficult to get finance, as banks have tightened their lending criteria due to pressure from regulators,
  • Tougher restrictions being imposed on foreign buyers by the government,
  • Rising levels of housing supply, and
  • Buyers with more realistic price expectations.

If you’re looking to take advantage of current market conditions to get into the property market speak to Strategic Investor Group today.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

How prepared are you for your property purchase?

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Eighteen per cent of Australian bidders have failed to get pre-approved finance prior to attending an auction, a new study has revealed.

According to a recent YouGov Galaxy poll, nearly one in five adults in Australia failed to secure finance before buying at auction.

Given it takes time to seek and be granted pre-approval it is important to seek professional advice as early as possible.

Buyers need to determine how much they can borrow and gain certainty that they are being realistic with their expectations.

Pre-approval is an indication from a lender that they feel comfortable lending a set amount of money to a potential buyer. It puts the buyer ahead of the game and strengthens their position when negotiating a purchase.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Is your loan structured correctly?

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The Reserve Bank has left the official cash interest rate on hold at 1.5 per cent for the 20th month in a row.

It is “universally anticipated” that the RBA won’t move on rates in the immediate future.

Most economists only expect one rate rise this year and 10 out of 24 analysts expect rates to remain on hold into 2019, and potentially beyond.

It is important to remain fully informed, and understand your options, by reviewing your individual circumstances today.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group

Location, Location, Location

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Sydney has the nation’s most evenly distributed new apartment market – putting it at less risk of inner-city oversupply – according to the 2018 UDIA State of the Land Report.

Just over a fifth of new Sydney unit completions (apartments, townhouses and terraces) were within five kilometres of the city centre in 2017 compared with almost half of all Melbourne unit completions – the country’s fastest-growing apartment market – the report found.

A third of new Sydney units were within 5 to 10 kilometres of the CBD, 28 per cent of completions were 10 to 20 kilometres out and 18 per cent of completions were as far as 50 kilometres from the centre of town.

Obtaining industry best advice is essential prior to making any potential property investment decision.

Carl Thompson – Commercial Lending Specialist, Strategic Investor Group