7 Australian Property Trends to Watch in 2025

The Australian property market is not uniform. It has never been and never will be.

Blanket statements like “Sydney is booming” or “the market is shrinking” often miss the mark. Why? Because the property market is anything but consistent.

Each suburb has its rhythm, each buyer group has its challenges and every investment strategy has unique drivers.

As we step into 2025, I’m seeing some fascinating developments. A lot is happening, whether you’re a seasoned investor, a first-home buyer, or someone trying to understand everything.

Navigating the market might feel like you’re trying to solve a complex puzzle — but for those who pay attention, the rewards are well worth the effort.

So, what’s next for Australian property?

Let me break down the top 7 trends shaping the market this year. These aren’t just buzzwords or guesses; they’re insights backed by my first-hand experience and expert observations, designed to help you stay ahead and make confident, informed decisions.

1.   An early 2025 property boom.

As 2024 wraps up, the Australian property market is closing cautiously, but early 2025 already shows signs of an exciting boom.

Here’s why:

• Pent-up demand: After a slow finish to 2024, buyers are eager to compensate for lost time, and sellers who held off are returning to the market.
• A surge in activity: People waiting on the sidelines are now ready to act, creating a more competitive environment early in the year.
• Expect a fast-paced market: With interest rates stabilising and confidence returning, the start of the year is shaping up to be busy and high-energy.

But it’s not just about timing — it’s about navigating the Australian property market effectively.

If property prices do skyrocket, I’m here to help you make the most of those changes, making sure you still get the best deal and the right price for your next move.

So, if you’re considering buying or selling, it’s clear that the first quarter of 2025 will be an exciting, fast-paced time to watch — and possibly a prime opportunity for those ready to act quickly.

2.   Changes in the 2025 interest rate — what does it mean for you?

Moving forward, it’s important to understand how the broader shifts in the market will affect your buying decisions.

One of the most significant changes expected is the movement in interest rates.

Looking ahead to 2025, I expect a noticeable shift in the property market as interest rates begin to drop. This will likely significantly impact demand, competition, and prices.

What’s likely to happen:

• More real estate buyers will jump in as interest rates decrease, increasing competition for properties.
• Property prices will likely rise as demand grows and more buyers enter the market.
• Interest rates are predicted to drop early in the year, so if you’re considering buying property in Sydney or Canberra, this could be your window to act before the market heats up.

Remember: The first few months of 2025 could be your best chance to lock in a property before competition increases and prices rise.

Now is the time to move quickly — before the Sydney and Canberra market catches fire!

3.   Frustrated buyers and the property quality gap.

Let’s talk about one of the biggest struggles in today’s market: finding the perfect property.

I’ve seen it first-hand; buyers are fired up and frustrated by the lack of A-grade homes. Demand for these top-tier properties is fierce and snapped up in no time. But anything less? Those B and C-grade properties? They’re lingering on the market!

Why the divide?

Buyers have raised their standards and honestly, who can blame them?

When investing in your dream home, you want the whole package — quality, location, and value. That means sellers must up their game to compete.

Here’s what you need to watch out for:

• Premium properties are flying off the market fast — buyers aren’t hesitating when they spot something great.
• B and C-grade homes are struggling to get noticed. Buyers are more selective, and the ‘close enough’ mentality isn’t cutting it.
• Expectations are sky-high, and rightly so. Buyers are waiting for quality, not compromising on something that doesn’t tick their boxes.

But here’s the good news: agents are telling us that there’s a fresh wave of better-quality homes on the horizon.

They’re holding back, waiting for the new year’s cycle to bring momentum. So, if you’ve been searching and coming up short, hang in there — your dream property might be around the corner!

In a market where quality matters more than ever, patience is key. The right home is worth the wait! Trust me.

4.   SMSFs will be a significant trend in Australian property investment.

Self-Managed Super Funds (SMSFs) are having a moment — honestly, it’s no surprise!

As Australians become more financially savvy, SMSFs are quickly becoming a popular way to manage retirement savings — and they’re opening exciting new doors for property investment.

What’s driving this?

It’s the ability to take control of retirement savings and make smarter investment choices.

PLUS, commercial SMSFs are gaining traction, offering even more ways to diversify with higher returns. People are realising that commercial properties, like office buildings and warehouses, are the next big opportunity in the SMSF space.

With 28% of SMSF assets in property, this trend will only keep growing!

Financial advisors are also playing a key role in this movement, guiding individuals toward smarter investment decisions. People are realising how valuable expert advice can be when it comes to building a strong financial future with an SMSF.

So, if you’re thinking about securing your future with an SMSF, 2025 is the perfect time to get started.

This trend is one to watch — and with the right education and advice, it could be your next big move.

 5.   Rise of shared property purchases in Sydney

As Sydney’s property market continues to skyrocket, many first-home buyers find it challenging to get their foot in the door.

So, what are they doing? They’re teaming up!

More and more buyers are combining their efforts to pool funds and make that dream property a reality.

Here’s what I’m seeing in 2025:

• Combined purchases are rising: With property prices climbing, younger buyers are realising they can’t tackle the market alone. They’re partnering with siblings, friends, and extended family to buy together.
• Sydney’s price surge is pushing buyers to get creative: Once-unimaginable prices are now a reality, leading to more collaborative efforts to enter the market. Without extra help, it’s just not feasible for many first-time buyers.

While it’s great to have family and friends by your side, property decisions are emotional, which can lead to tricky situations. That’s where a Sydney Buyers Agent comes in!

A neutral expert helps keep things on track, ensuring everyone stays focused on the end goal without letting personal preferences interfere.

Having a trusted Buyer's Agent present to provide an objective opinion can make all the difference. My team and I can help navigate disagreements and ensure everyone is on the same page.

It’s a great way to make sure everyone’s interests are taken care of, all while navigating a super competitive market!

6.   Boomers are finally selling — and it’s shaking up the market!

Here’s the big news: Baby Boomers — who hold 50% of Australia’s private wealth — are starting to move into the property market again. After years of holding onto their family homes, they want to downsize.

Imagine the large family homes they’ve lovingly maintained for decades, but now, with kids grown up and their lives changing, they’re ready to embrace something…

✔ smaller,

✔ easier and

✔ more suited to their needs.

This is huge for the market.

This means not only are Boomers selling their homes, but they are also creating opportunities for younger buyers like you! With so much wealth tied up in property, their decisions impact what’s available for the rest of us.

By 2025, as Boomers access their superannuation, we’ll see even more movement. Some are helping their kids onto the property ladder, while others invest in smaller homes or properties for future generations.

It’s an exciting time for younger buyers and investors — the market is shifting, and opportunities are popping up everywhere.

Get ready because things will get even more interesting in the property market!

 7.   Sydney property hotspots — a market of many markets.

For the last trend this 2025, I’m excited to explore Sydney’s hotspots—because, let’s face it, the Sydney property market isn’t as simple as one big trend! There are pockets of growth across the city, each with its unique vibe and opportunities.

Here are the key areas to watch:

• Dulwich Hill & Summer Hill (Inner West) — Popular for their proximity to the city and great transport links.
• Coogee (Eastern Suburbs) — Affordable apartments near the beach, perfect for younger buyers.
• Lane Cove — Family-friendly with top schools and a bustling retail precinct at The Canopy.
• Edmondson Park — Strong infrastructure and a growing dining and nightlife scene at Edge Square.
• South Turramurra (North Shore) — A rising area with strong growth potential.
• Greenwich — Proximity to St Leonards and light rail upgrades make it a hotspot for buyers.

The key takeaway? Sydney’s property market has an exciting mix of hotspots with unique opportunities depending on what you’re after — whether it’s a family-friendly neighbourhood, proximity to the beach, or easy city access.

Keep your eyes peeled, because there are so many exciting pockets of growth to explore in 2025!

Are you ready to make your next move? Contact me and my team to get started!

We are your expert and trusted Buyers Agents, here to help you reach your property goals.

In today’s extremely competitive Sydney real estate market, you need a dependable and empathetic Buyer's Agent to help you achieve your property and lifestyle goals, secure the best deal, negotiate on your behalf, and represent your unique interests.

As the founder of Brady Marcs Buyers Advisory, my team and I can guide you through the entire property-buying process. From first-home buyers to seasoned property investors, our integrity and expertise are for everyone, every goal, and every property.   

We even provide vendor advocacy services if you’re looking to sell your home before buying a new one, as well as property management services if you’re looking for a reliable team to look after your investment property.

Contact us today to see how we can help you take a better approach to your property journey.

DISCLAIMER: This article’s contents are provided as general information only and not intended to be taken as advice or personal consulting in any form. These insights and trends are provided as just general assumptions and information, and are not to be misconstrued as guarantees as they don’t take into account your specific circumstances, the general economic situation or market shifts as time progresses. For more specific information, conduct your own research or speak to a buyers agent specialist for more bespoke advice to make decisions upon.