Australian Property Market
2025 is just getting underway and everyone is starting to shake off the haze of the festive season. If you’re considering buying or selling real estate this year, there are some key trends to look for in the Australian property market.

This article highlights five emerging Australian property market trends, such as regional growth, sustainability-focused developments, evolving buyer preferences, and more.

  1. Regional growth
  2. Potential interest rate cuts in 2025
  3. Sustainability-focused developments
  4. Evolving buyer preferences
  5. House price rises slowing

1. Regional growth

The prediction is the million-dollar club will rise considerably across regional Australia in 2025. The million-dollar club is where the house price median in an area is above seven figures. Just two areas reached this median five years ago. Now the figure is twenty locations. There are four more regions predicted to reach the seven-figure median during 2025, with another seven possibilities. One example is the Sunshine Coast Hinterland and another is Newcastle.

Key features of these growth prospects are oceanside locations and waterfront properties. Satellite cities and areas within a short commute of a major metropolitan area also offer lifestyle appeal.

2. Potential interest rate cuts in 2025

One significant trend this year is the possibility of official interest rate cuts. Experts predict the Reserve Bank of Australia (RBA) will reduce interest rates twice during the second half of 2025. However, this depends on how the economy and inflation play out.

If inflation increases across the country, it’s less likely the RBA will cut interest rates. Regarding the economy, if people spend less or unemployment rises, pressure will be on the RBA to reduce interest rates sooner than planned.

3. Sustainability-focused developments

Australia is a global leader in sustainability-focused developments. Our country blends innovative designs with the environment in mind. Brisbane, Sydney, and Melbourne have ambitious plans to enhance urban livability whilst being sustainable and eco-friendly.

Green-star certified buildings are now becoming the norm. They feature energy-efficient systems, the integration of renewable energy, and technology to conserve water. Projects like the Barangaroo precinct in Sydney not only reduce environmental impact, but also provide healthier and more vibrant communities.

Beyond the big cities, regional areas are also embracing sustainability. Australia’s renewable energy sector is expanding, with large-scale solar and wind farms contributing to the national grid.

4. Evolving buyer preferences

Australia is experiencing a significant shift in buyer preferences, with changing lifestyles, environmental concerns, and economic factors all playing pivotal roles.

Buyers now expect energy-efficient and sustainable homes, with energy-efficient appliances, water-saving systems, and even solar power. Other features today’s buyers look for are efficient ventilation, and lots of natural light. All these help combat the rising energy prices and align with environmental values.

Outdoor living areas such as gardens, patios, and balconies are highly popular as buyers value spaces that enhance mental well-being and support indoor-outdoor lifestyles.

Location preferences are also changing, with many home buyers moving from central urban areas to the outer suburbs or regional hubs. Fuelling this trend is more affordable property prices and a higher quality of life. Regional areas that offer good infrastructure, access to nature, and a strong community feel are seeing a surge in demand.

For many, affordability remains a crucial factor influencing buyer preferences, especially among first-time home buyers.

5. House price rises slowing

There are signs the housing market will cool throughout this year. However, it will vary. South-East Queensland, Perth, and Adelaide are still performing strongly, whereas Melbourne and Sydney are seeing house prices flatlining.

With many homeowners struggling to make their mortgage payments, there has been a surge in listings as owners decide to sell. A higher supply of homes for sale dampens property prices in some regions.

On the flip side, strong population growth, the expectation of interest rate cuts, and high building costs may prevent significant drops in house prices.

Overall, the outlook suggests a period of modest price growth and stability, rather than a significant drop in house prices.

How Lend & Co can help

Whether you’re an investor or homeowner, Lend & Co provides tailored financing solutions to help you make the most of Melbourne’s property market. Book a free strategy call with our experts today to explore loan options and opportunities.

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