2025 Property Market Year in Review: What a Year It Was
As 2025 draws to a close, it's time to reflect on a year that delivered three rate cuts, continued price growth, and significant policy changes for home buyers.
The Big Story: Rate Cuts Return
After holding rates steady through 2024, the RBA delivered three cuts in 2025:
- February: 4.10%
- May: 3.85%
- August: 3.60%
These cuts improved borrowing capacity and supported buyer confidence through the year.
Price Performance by City
Most capitals recorded solid gains:
- Brisbane: Approaching the $1 million median mark
- Perth: Strong growth continuing
- Adelaide: Outperforming larger cities
- Sydney: Median above $1.7 million
- Melbourne: Steady recovery underway
Key Trends of 2025
- Units outperforming: Affordability driving apartment demand
- Regional resilience: Sea-change and tree-change markets holding gains
- First home buyers active: Government schemes supporting entry
- Investor return: Rental yields attracting investors back
Looking Ahead to 2026
Forecasters predict continued growth in 2026, though at a slower pace. Key factors to watch:
- Whether the RBA holds or cuts further
- Expanded First Home Guarantee from October
- Help to Buy scheme launching in December
- Population growth and housing supply
If you're planning to buy in 2026, getting pre-approved now will put you in a strong position for the new year.