The Australian Property Report July - December 2025 3 Meanwhile, Brisbane, Perth, and Adelaide markets continue their upward trajectory albeit at a more moderate pace, underpinned by affordability, lifestyle appeal, and interstate migration. Across our national network, we transacted nearly $9 billion in property in the first six months of 2025, a testament to the enduring demand and depth of market activity across all segments. Ongoing uncertainty around land tax and shifting policies in Victoria is creating challenges for landlords. With rental supply tightening as investors reassess their positions, rents are rising, exacerbating affordability concerns. Balanced reform that acknowledges the role of private investors will be critical to avoiding a deeper housing crisis. Interest rates and buyer sentiment Interest rate movements remain one of the most significant influencers of property market behaviour. The RBA’s past rate hikes placed pressure on stretched borrowers, but recent cuts have offered relief and the possibility of further reductions in the second half of 2025 has lifted buyer sentiment, encouraging many back into the market. Notably, we continue to see strong price growth in pockets where demand consistently outweighs supply. Investor activity, which had previously slowed due to uncertainty and cost of borrowing, is beginning to rebound, particularly in areas such as Brisbane, Sunshine Coast and Adelaide, offering strong rental yields and long-term capital growth prospects. Source: CoreLogic Generational wealth and market dynamics Real estate continues to be a cornerstone of Australian wealth. Baby boomers, who currently hold around half of the country’s private wealth, are playing a pivotal role in today’s market dynamics. As many look to downsize or relocate, they are not only releasing capital into the market but also supporting the next generation, often their children, in achieving homeownership. This intergenerational wealth transfer is accelerating movement, especially in suburban and lifestyle regions, boosting both liquidity and confidence in the market’s long-term outlook. Looking ahead The outlook for the second half of 2025 is cautiously optimistic. Government affordability measures, interest rate relief, and population growth suggest further opportunities for buyers and investors. However, ongoing global uncertainties, particularly in trade and monetary policy, call for continued vigilance. At Belle Property, Acton | Belle Property, and Hockingstuart, we remain committed to supporting clients through every phase of the property journey. Whether you are new to the market, expanding your investment portfolio, or navigating a shifting landscape, we are here to help you make confident, informed real estate decisions in every market condition.
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