As we step into 2025, the Australian property market is evolving rapidly, with new opportunities and challenges emerging.
Ray White’s 2025 Property Outlook Report highlighted trends across residential, commercial, and luxury segments, providing insights to help buyers, investors, and industry professionals navigate the landscape.
Ray White chief economist Nerida Conisbee (pictured above) predicted interest rate cuts in the second half of the year, offering relief to households amid rising living costs.
However, she cautioned that “the timing and size of rate cuts will depend on inflation, global economic conditions, and Australia’s economic performance.”
Rate reductions could provide a much-needed boost to buyer confidence, especially in high-mortgage cities like Sydney and Melbourne.
While house prices are expected to rise in 2025, growth will likely slow compared to previous years.
Strong population growth and limited new housing supply are stabilising prices in key cities like Brisbane and Perth.
However, affordability pressures and increased property listings may temper gains in larger markets such as Sydney and Melbourne.
Australia’s luxury property market is undergoing a significant shakeup. The Gold Coast has surpassed Melbourne as the second most expensive luxury market, with Brisbane and Adelaide showing strong growth.
Sydney remains the top market, with its top 5% of house prices exceeding $4 million, Ray White reported.
Regional Australia’s “million-dollar club” has expanded dramatically, with the Gold Coast and Sunshine Coast dominating.
Surfers Paradise leads as the first regional area likely to surpass the $2 million threshold.
Emerging hotspots like Newcastle and the Sunshine Coast Hinterland are also poised for significant growth.
Retail is set to lead commercial property performance in 2025, driven by strong population growth and evolving tenant mixes.
Meanwhile, the secondary office market faces challenges due to higher vacancy rates and ESG demands, creating opportunities for redevelopment into residential or mixed-use properties.
Loan Market CEO David McQueen highlighted a growing reliance on mortgage brokers, with up to 80% of Australians expected to use their services in 2025.
As borrowing conditions change, brokers play a crucial role in securing the best deals for both new buyers and existing homeowners.
Private investors are expected to drive growth in the commercial sector, leveraging improved lending conditions and lower interest rates.
Sectors like childcare and last-mile logistics remain particularly attractive, offering stable income and growth opportunities, Ray White reported.
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