For this month’s Market Watch, I was joined once again by Scott Hochgesang from Bespoke Property to run through the latest performance trends in the Australian property market—results to 30 April 2025.
Every episode we always cover a special topic and this month we investigated the performance and opportunities in the apartment market. We’re seeing some interesting dynamics in the market, so if you’re considering buying or investing in a unit, take a look at our insights and tips.
Market Snapshot – Data to 30 April 2025
As always, we source our stats from the most reliable data monitors —CoreLogic, PropTrack, and SQM Research—and here’s what the data delivered :
- Sydney saw moderate growth: CoreLogic (+0.4%), PropTrack (+0.2%), and SQM’s asking price data jumping 1.8%—a sign sellers are confident or . . . the agents are optimistic.
- Melbourne is creeping forward, though slowly. CoreLogic reports just +0.1% for April, with PropTrack at +0.2% and SQM at +0.7%. Looks like the much-hyped turnaround may be slower than expected.
- Brisbane remains solid: CoreLogic (+0.4%), PropTrack (+0.2%), SQM (+0.8%).
- Adelaide stays steady in CoreLogic and PropTrack data (+0.2% and +0.3% respectively), but SQM actually reported a drop in asking prices.
- Perth continues to deliver, up +0.4% (CoreLogic), though PropTrack says only +0.1%, will SQM reporting 0.4% asking price increase.
- Hobart surprised with a +1.1% rise in CoreLogic data—possibly a statistical blip—but it matches SQM’s 1.3% increase in asking prices.
- Darwin showed mixed signals: CoreLogic (+1%), PropTrack (0%), SQM (+1.4%).
- Canberra: small gains, except for SQM showing a drop of -0.8% – the drop in asking prices could be a reflection of Dutton’s announcement that Federal Government employees would be ‘trimmed’.
National data is too broad to be meaningful for our purposes, but the takeaway is clear: most growth is occurring in outer metro areas, especially in more affordable corridors.
Policy Watch – What Federal Labor Means for Buyers
Following Labor’s strong showing at the polls, here’s a summary of the policy promises outlined during the election campaign and what we can expect to be pass through to the market.
- Construction of 100,000 homes for first home buyers over 8 years: It’s a start—but when we’re seeing 140,000+ first-time buyers per year, we all know more construction is needed.
- Expanded 5% deposit scheme: Now open to all first time and key specialty buyers, the scheme will now operate with no income caps or participant limits. Purchase price limits have been increased meaning in Sydney you could now buy a $1.5M property with just 5%—if the banks agree, of course.
- Help to Buy shared equity scheme (the Government covers up to 40% of the loan): Controversial, but it will be a lifeline for longtime renters.
- 45% increase in rent relief for over a million renters.
- Funds to build 50,000 affordable homes, with 28,000 already under construction.
- $1.2 billion in crisis housing, plus funds for apprenticeship programs and infrastructure support to boost housing supply.
- The Foreign Investment Ban for existing property which commenced on 1 April 2025 will continue until 31 March 2027. This is on top of other specialist taxes for foreign investors, and means foreign buyers are restricted to purchasing off the plan / new property or vacant land.
Note many of these policies still need to pass through Parliament, however most should pass through easily even though Labor doesn’t have total control of the Senate.
Special Focus – Are Units Worth Considering in 2025?
Our regular market watch analysis focuses on houses as this is the largest sector of the market, but this month we reviewed the apartment sector of the Australian property market.
House prices in our biggest cities and regions have increased significantly in the past five years however apartment prices haven’t tracked at the same rate, resulting in the purchase price for apartments in 2025 coming in around 50% of the purchase price for houses in the same suburb.
Using the data alone doesn’t tell the real story however, because houses will often be three or more bedrooms (and the price also reflects the block the property sits on), whereas units have a higher number of 1 and 2 bedroom dwellings with 3 and 4 bedroom units in the minority.
Even so, apartments do offer a great opportunity for buyers who want an affordable option close to good amenities including transport and restaurants, and in many cases will mean residents can live closer to where they work.
When it comes to rental returns, there is a perception that rental properties have a higher chance of being cash flow positive – where the rent covers all costs. Looking at the data it’s true the percentage yield is higher for units – 4.5% on average for houses, and 5.5% on average for units.
If it’s rental yield you’re after, it will come down to good quality search and selection in order to find cash flow positive opportunities for any property you’re looking to purchase. If you’re considering an apartment, outlined below are the key tips for a successful purchase.
What to Avoid
- Off-the-plan, ‘outside of the city’ units with no scarcity or special features.
- One-bedroom boxes that lack appeal or flexibility for tenants.
- High-rise towers in oversupplied suburbs—great for developers, not great for your equity.
Also, be wary of units targeted at foreign investors. These apartments are sold at a premium (high) price and immediately lose value after the apartment is no longer ‘new’. You may find it harder to resell down the track, especially if foreign buyers can’t purchase your property due to regulatory restrictions.
What to Look For
If you’re apartment hunting, aim for:
- Low-rise, older-style blocks with generous land and potential rezoning upside.
- Two-bedrooms or more – better for resale and rental appeal.
- Great location and aspect – walkable to transport, cafes, or with a standout view.
- Buildings with good strata health – and no red flags in the inspection reports.
Mid-rise apartments are gaining popularity among boomers for their lockup-and-leave convenience. Shared rooftop terraces and smart layouts are replacing the old penthouse model.
High-rise might be okay—but only in exceptional cases (think Barangaroo or a premium Gold Coast beach view).
Pros and Cons of Units
Pros:
- No land tax
- Often better gross rental yields
- Closer to transport, shops, cafes
- Lower price entry point
- Can offer great views or amenities
Cons:
- Strata fees (always check!)
- Construction issues in some eras
- Less control over your property – any renovations will usually need strata approval
- More complexity around resale
- Not all units are equal—especially in high-density areas
Final Tips Before You Buy
- Always get a strata inspection AND a building inspection—yes, even for units.
- Check the owner-occupier ratio—too many renters can be a red flag.
- Understand the strata rules—short-term rental restrictions can catch buyers out.
- Be involved—join the strata committee if you can.
- Avoid rental guarantees—they often mask inflated prices.
A Little Myth Buster
If you’re a first time buyer looking for a budget purchase, don’t let media hype fool you into thinking you can’t afford to buy property in our major capitals (or anywhere really). During our research for this episode we found plenty of units in the capital cities for purchase prices of $500,000 or less. There’s an example we show in the podcast for a 2 bedroom, 2 bathroom unit in Parramatta that sold on 8 May 2025 for $460,000 : – ).
Need Help? We’re Here
Buying a unit (or any property) is one of the biggest financial decisions you’ll make—and you shouldn’t have to figure it out alone.
The Property Smart Track is a modular, step-by-step support system you can use to increase your buying position, avoid the traps, and buy smarter. Click here for more information.
If you would like your purchase completely done for you – don’t hesitate to reach out to Scott or me.
Author: Debra Beck-Mewing
Debra Beck-Mewing is the Editor of Property Portfolio Magazine and CEO of The Property Frontline. With over 20 years of experience buying property across Australia, Debra is a skilled property strategist and buyers agent known for uncovering tailored opportunities — from family homes to multi-use investments.
She has deep expertise in advanced strategies including renovations, granny flats, sub-division, and development. A Qualified Property Investment Advisor (QPIA®), licensed real estate agent, and holder of a Bachelor of Commerce and Master of Business, Debra combines strategic insight with hands-on experience.
Debra is the creator of the Property Smart Track System™ – a professional property buying system that enables buyers to select, assess and buy property independently in today’s market. She also leads Buy Like A Genius™, a premium end-to-end buyers’ agency service for busy professionals seeking expert property acquisition without the stress.
As a passionate advocate for greater transparency in the property and wealth industries, Debra is a sought-after speaker, author, podcast host, and participates on numerous committees including the Property Owners’ Association.
