In this Market Watch update, property experts Debra Beck-Mewing and Scott Hochgesang step back and review what actually happened across the Australian property market in 2025. Using the most reliable data sources and real-world purchase examples, this update cuts through the noise and focuses on what matters for buyers and investors heading into 2026.
As always, our analysis draws on Cotality, PropTrack, and SQM Research, combined with frontline insights from active purchases made throughout the year. This edition also includes an expanded Mentionable News section covering Australian market drivers, global forces, and infrastructure, plus an in-focus review of some of the purchases made by Deb and Scott during 2025.
2025 at a Glance: A Strong Year with Clear Leaders
At a headline level, 2025 delivered another year of solid price growth nationally, though the performance was far from uniform.
Sydney and Melbourne showed noticeable softness toward the end of the year, particularly in December. That slowdown needs context. December is a short, disrupted trading month, and historically it is often when motivated sellers remain while many buyers step back. In practice, this can create opportunity rather than signal a structural downturn.
However, some caution did emerge, particularly at the higher end of the market. Concerns around future interest rate settings appear to have had more impact on premium price points than on the lower and middle segments, where demand remained active.
Full-Year Capital City Growth: What the Data Shows
When we consolidate the full-year numbers across all three major data providers, several clear themes emerge.
Sydney and Melbourne
- Sydney recorded solid annual growth, with Cotality and PropTrack reporting growth in the high single digits.
- SQM’s asking-price data showed a much higher figure, which reinforces why asking prices should be interpreted carefully.
- Melbourne finally recorded growth above inflation, marking a meaningful shift after several subdued years.
Brisbane, Perth, and Adelaide
- Brisbane continued its standout run, with growth consistently in the low-to-mid teens across data sources.
- Perth delivered one of the strongest performances nationally, with sales growth and asking prices both surging.
- Adelaide remained strong but showed signs of losing momentum relative to Brisbane and Perth, particularly when comparing sales-based data to asking prices.
Smaller Capitals
- Hobart recorded moderate growth but remains highly sensitive to affordability constraints.
- Darwin surprised many with strong annual growth, though it remains a small and volatile market.
- Canberra posted steady, mid-range growth consistent with its long-term pattern.
National Picture
- National dwelling growth sat just under 10 percent on a sales basis.
- With the median house price now around $980,000, that equates to roughly $90,000 in average equity uplift per property over the year.
This level of wealth creation significantly outpaced wage growth and underscores why strategic property selection matters more than simply “being in the market.”
Rental Market Update: Pressure Remains
Rental conditions remained tight throughout 2025, underpinned by low supply and ongoing population growth.
Key observations:
- Brisbane and Perth recorded annual rental growth of around 6 percent for houses.
- Sydney unit rents stood out, pushing toward 6 percent yields in some areas.
- Unit rents generally outperformed houses, reflecting affordability pressures and constrained new supply.
In practical terms, this supported investor cash flow and provided a buffer against interest rate risk, particularly for well-selected properties close to employment and transport hubs.
Mentionable News: What Is Influencing the Market Now
Australian Market Drivers
Tailwinds
- Net overseas migration remained high, with around 300,000 net arrivals for the 24-25 year.
- Housing construction continues to fall well short of required levels.
- Rental shortages are reinforcing demand across most capitals.
- Brisbane, Perth, and select regional centres continue to benefit from strong momentum.
Headwinds
- Renewed discussion around interest rate increases is creating caution.
- Credit tightening is emerging, particularly for more aggressive lending structures.
Affordability is increasingly capping price growth in some locations.
Global Forces to Watch
Global uncertainty increased toward the end of the year:
- Gold and silver prices surged as investors sought inflation hedges.
- Oil prices eased, helping moderate inflation pressures.
- Geopolitical instability and slowing growth in China present ongoing risks.
- Interest rate policy uncertainty in the US could have downstream effects on global capital flows.
Historically, periods of global instability often reinforce Australia’s position as a relatively safe property market, particularly in well-located metropolitan areas.
Infrastructure: A Quiet but Powerful Driver
Infrastructure remains one of the most underappreciated long-term influences on property values.
Recent and upcoming highlights include:
- Brisbane Olympic infrastructure announcements.
- Major upgrades across Toowoomba, Bundaberg, and regional Queensland.
- Continued investment around Western Sydney Airport and Bradfield City.
- Major rail and road upgrades across Perth, including projects that materially improve lifestyle amenity.
- Transport upgrades in Melbourne improving airport and commuter access.
Several large projects are scheduled to reach completion through 2026, which we will cover in more detail in a dedicated infrastructure-focused Market Watch.
In Focus: Selected 2025 Purchases
New Builds and Income Projects
During the session, Scott provided insights into some of his purchases for 2025. Projects included:
- Detached homes on the Sunshine Coast built under $820,000 and renting strongly.
- Brisbane houses in growth corridors delivering solid yields with strong capital uplift.
- Dual-key properties in Perth producing exceptional rental income.
- Duplex and rooming house projects delivering high cash flow and equity creation.
These projects highlight the importance of timing, structure, and location, not just headline market growth.
Owner-Occupied and Strategic Purchases
Deb shone the spotlight on a few of her purchases for 2025, including :
- Long-term family homes secured below market in tightly held suburbs.
- Sub-$1 million investment properties with rezoning potential.
- Lifestyle properties aligned with long-term portfolio strategies.
- Renovation projects designed to manufacture equity.
- Scarce, high-quality units selected for long-term livability rather than generic yield.
Each purchase was guided by client-specific criteria rather than copying trends or chasing headlines.
Key Takeaways for Buyers Heading into 2026
We’re definitely in for an interesting year. Deb and Scott covered a review of the market forecast in Episode 22 of Market Watch which showed all reliable forecasters projecting steep price increases in the main cities and regional areas. They will provide an update to this forecast in the next Market Watch session, but as things stand at present 2026 will be great year to buy.
Remember, if you’re preparing to make your next property move soon, ensure you apply good fundamentals as follows.
- Use independent, sales-based data rather than relying on asking prices.
- Focus on affordability, supply, and infrastructure rather than short-term sentiment.
- Rental pressure remains a meaningful support for well-located investments.
- There is no single “right” strategy. The right decision depends on your goals, risk profile, and time horizon.
Buying well is not about following what others are doing. It is about understanding your own position and applying clear, disciplined criteria.
What’s Next
Our next Market Watch will focus on updated 2026 forecasts, emerging strategy considerations, and how buyers can position themselves intelligently as conditions evolve.
If you want structured help making sense of your options, watch this space for something very special on offer from The Property Frontline – the Property Smart Start. This is a live, two-part workshop designed to help buyers develop the best strategy and really get moving on their next property purchase. You won’t want to miss this, and we will provide more details soon.
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.
