In this episode of Market Watch on The Property Frontline, Debra Beck-Mewing and Scott Hochgesang reviewed the latest performance of Australia’s property market, and also reviewed key market aspects that will influence prices over the coming months.
In addition, for the IN FOCUS session, Deb and Scott reviewed the pros, cons and success strategies for one of the hottest topics for investors: dual occupancy and high cashflow properties.
Watch the session HERE to see examples, tips for how to select the best high cashflow options and key red flags so you can avoid market traps. As usual, Deb and Scott cut straight to the point and explain why dual occupancies could be the smartest strategy in today’s tight market.
National Market Snapshot to 31 May 2025
As always, we’ve analysed the data from the three most reliable sources—CoreLogic (now Cotality), SQM Research, and PropTrack—to give a clearer picture of what’s really going on.
Reviewing price performance for the data to 31 May 2025, all main capitals show increases (see below for collated data). The only dip – which is very mild – shows in the SQM data for Sydney. Remember, the SQM information tracks ‘asking prices’ and is therefore an indicator vendor market confidence (and – often – this is an indication of what the sales agents are thinking where prices should be set to get attention for a property).
We’ve also added a new measure to our dashboard: the rolling 12-month price change chart, which tracks adjustments to sales price growth each month. To be clear, the chart doesn’t track prices, it’s the percentage of the price increases or decreases tracked each month. Watch the podcast for more of an explanation. Key insights from this chart (apart from the fact that it makes things much more visual and easier to see where prices are tracking) include:
- Perth remains the standout performer, though the rate of price growth is slowing and now tracking at around 10% (down from the peak of 25%).
- Melbourne is still sluggish but shows some slight upward movement.
- Brisbane and Adelaide continue to sit at record highs, but Darwin (albeit a small market so small amounts of activity have a large impact on percentage change) is having a bit of a price run.
Property Market News – Economic Factors Influencing the Market
Several policy and macroeconomic developments are helping shape the current outlook:
- Trump’s trade policy walk-back has calmed global markets somewhat, lowering negative concerns around the impact of tariff changes (TACO – Trump Always Chickens Out : – )).
- RBA rate cuts likely: Some banks are forecasting up to four rate cuts over the coming 12 months, which could unlock borrowing capacity and spur buyer activity.
- QLD First Home Buyer Grant extended: The $30,000 grant has been extended for another 12 months (to 30 June 2026), giving buyers more breathing room to consider their choices.
- Federal Home Guarantee Scheme changes: Adjustments due in January 2026 may encourage some buyers to hold off until early next year—but those ready now could take advantage of less competition.
- Super tax overhaul: The proposed tax on super balances over $3 million could lead to strategic property sell-offs, particularly where assets are held in SMSFs. Of course, the real frustration is that the Government keeps messing around with the rules. A flick of the pen for politicians (Jim Chalmers – we’re looking at you) makes long-term planning harder for every day Australians who might plan 30 years in advance to structure their retirement in a way that avoids having to rely on the pension. A short plea from the market = please stop tinkering.
IN FOCUS >> High Cashflow and Dual Occupancy Properties
This month’s featured topic is the holy grail of high cash flow + dual occupancy properties—popular with investors chasing high yields, but often misunderstood or misrepresented.
What Counts as Dual Occupancy?
In simple terms, a dual occupancy property allows two separate tenants on two separate leases. It could be:
- A duplex (two homes on one title or subdivided)
- A house with a granny flat
- A dual-key house (one building but two self-contained units)
- A Fonzie flat (granny flat above garage)
- Occasionally, units or townhouses with two lettable spaces
Note – this doesn’t include: rooming houses, co-living, or unapproved variations.
Real Examples from the Field
Deb and Scott showcased several examples, talking through the pros, cons and tips for each property. Examples included a range options—from brand-new builds in Hervey Bay, the Hunter Valley, and Schofields, to established properties with approved or convertible granny flats in Western Sydney and South-East Queensland.
Some highlights:
- New builds: Can achieve rental yields of 6%+ when designed correctly, especially with separate metering and soundproofing.
- Established properties: May not offer as much depreciation benefit but are often in better locations with superior capital growth potential.
- Granny flat conversions: If legally approved, they can provide an instant uplift in rental return—often turning a $750/week property into a $950+/week performer.
Key Legal and Council Checks
Before you buy a dual occupancy or high-yield property, you must check:
- Zoning and land size (e.g., NSW needs 450m²+ statewide, but some councils want 650–750m²) – each State / Territory has an overarching size, but local Councils will often have their own criteria which can change depending on what the local area needs.
- Whether the property qualifies under Complying Development or needs full Development Application (DA).
- Frontage, side/rear setbacks, and pipeworks (e.g., stormwater/sewer).
- Granny flat approval rules: parking requirements, building code compliance, distance to main house and items mandated by individual Councils.
- Separate metering for electricity/water (important for dual leases).
Even if an agent says it “can be rented separately,” always verify with Council and private certifiers. Changes in state and council policies can happen quickly, so you should do more than just a quick check of the Council website.
Final Investor Tips
- Avoid misleading claims. Just because a property is marketed as a “dual occupancy” doesn’t mean it’s legally rentable as such.
- Understand growth potential. High yield doesn’t always mean high growth—unless you find a true unicorn (i.e., properties with both cashflow and excellent capital growth).
- Depreciation isn’t everything. Don’t rely solely on tax offsets—focus on overall return and asset quality.
- Call Council before committing. Always double-check regulations, overlays, and approval timelines.
Ready to Get Started?
Whether you’re building new or buying established, Deb and Scott can help. From full-service property sourcing to expert buyer support via the Buyer Success Program, there’s a path that suits every investor or homebuyer looking to maximise value while avoiding common traps.
Tune in next time for our July 2025 Property Market Watch where we’ll reveal our Mid-Year Market Forecast and what to expect heading into Spring.
In the meantime, subscribe to The Property Frontline Youtube Channel to stay informed—or reach out directly if you’d like personalised advice.
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.
