Is 2025 the Year to Sell? Navigating Australia’s Evolving Property Market

2025-04-09

Why this could be a golden window for property sellers across the country

-Sapphire Estate Agents

As the dust settles on the volatility of recent years, Australia’s property market enters 2025 at a crucial inflection point. With a backdrop of softening interest rates, resilient buyer demand, and regional divergence in housing trends, sellers are presented with a market that may not be booming, but is quietly ripe with opportunity.

At Sapphire Estate Agents, we understand the subtleties beneath the surface—and 2025 may just offer a window that the strategic seller shouldn’t ignore.

Sentiment Is on the Rise: What the Experts Are Saying

A recent CoreLogic report surveying over 2,400 real estate and finance professionals revealed that 65% of agents expect property prices to rise in 2025, with 25% forecasting gains of over 5%. The data points to cautious optimism, underpinned by improved affordability, rising household incomes, and a potential cycle of rate cuts expected to unfold in the latter half of the year.

Queensland, buoyed by internal migration and infrastructure development, is emerging as a clear front-runner, while Melbourne, with its more accessible median house price, may see renewed interest from affordability-focused buyers.

Interest Rates and Affordability: A Tipping Point

Following a challenging period of rate hikes and inflationary pressure, the Reserve Bank of Australia has already trimmed interest rates to 4.10%, and further easing is anticipated by mid-to-late 2025. Lower borrowing costs are expected to inject confidence into the market, triggering a surge in mortgage approvals and broadening the buyer pool.

While the market is not expected to replicate the high-octane growth of 2024 (which averaged 4.9%), 2025 still carries the promise of moderate national house price growth at around 3.3%, with momentum building into the second half of the year.

The Regional Renaissance: Where the Momentum Lies

Not all markets are moving at the same pace though. According to source, Brisbane and Perth, for example, are outperforming their metropolitan counterparts, propelled by major infrastructure projects and population influx. In Brisbane, the appeal is twofold: affordability compared to Sydney and Melbourne, and a lifestyle draw that continues to lure both investors and owner-occupiers.

Meanwhile, Sydney and Melbourne are set for modest but stable gains (3.3% and 3.5% respectively), aided by returning international migrants and renewed investor sentiment. With construction lagging behind population growth, housing stock remains under pressure—creating fertile ground for well-positioned sellers.

Apartments and Townhouses: The New Buyer Preference

An emerging narrative from KPMG’s latest property report is the shift in buyer preference towards attached dwellings. Units and townhouses are tipped to outperform houses in price growth across the next two years, driven largely by affordability constraints in detached housing markets.

This trend presents a compelling case for unit sellers. With unit prices forecasted to rise by 4.6% in 2025, and 5.5% in 2026, sellers in this segment could be poised for above-average gains—especially in cities like Sydney and Melbourne, where price gaps between houses and units are at historic highs.

The Seller’s Dilemma: Why Timing Matters

While the broader outlook remains encouraging, timing will be everything. Listing in early-to-mid 2025 may allow sellers to capitalise on growing buyer enthusiasm and lower competition. As interest rates continue to fall and affordability improves, more homes will inevitably come to market—potentially diluting prices in late 2025 and early 2026.

Moreover, supply-side factors remain constricted. Although building approvals are trending upward, the lag between approvals and completions means tight stock levels are likely to persist through much of 2025.

Challenges on the Horizon: A Balanced Perspective

Of course, not all conditions are perfectly aligned. Inflation, while easing, remains a concern. Wage growth is recovering, but unevenly. And the spectre of a saturated market looms if too many sellers flood the listings towards year-end.

However, these headwinds are tempered by one significant tailwind: buyer confidence is back—fueled by an improving economy, higher savings, and supportive lending conditions.

Final Word: Strategic Sellers Can Win in 2025

For homeowners considering their next move, 2025 is shaping up to be a calculated but potentially rewarding year to sell. At Sapphire Estate Agents, we believe success lies not in chasing peaks, but in anticipating momentum. Sellers who act early and align with evolving market conditions stand to benefit the most.

Sapphire’s expert agents are equipped to guide your journey—matching insight with opportunity, and timing with precision.

Contact Sapphire Estate Agents today to discuss how you can make 2025 the year you unlock your property’s full potential.