07/12/2025
🏡🇦🇺✨ Roundup 2025: Australia’s Real Estate Market 📊🔥💰
âś… Housing Prices
• National home prices rose 8.7% year-on-year, reaching a median of $873,000, the highest on record.
• Perth (+15.5%), Darwin (+14.1%), and Brisbane (+13.7%) led capital city growth; regional WA and QLD also outperformed.
• Units outpaced houses in growth due to affordability pressures; unit prices rose 7–12% in major cities.
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âś… Interest Rates & Borrowing
• RBA cash rate held at 4.35% for most of 2025, with cuts expected late in the year (forecast range: 3.1–3.85% by early 2026).
• Typical mortgage rates:
• Variable: ~6.2–7.5%
• Fixed (3-year): ~5.8–6.8%
• Rate cuts in Feb, May, and Aug boosted buyer confidence and investor activity.
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âś… Rental Market
• Vacancy rates remain extremely low: national average ~1.2–1.3%, with Perth and Adelaide below 1%.
• Median weekly rents:
• Apartments: $675 (+5.5% YoY)
• Houses: $680 (+4.6% YoY)
• Rental growth slowed compared to 2023 but affordability worsened; rents still rising faster than wages.
• Build-to-Rent sector expanded with 6,000 new units delivered in 2025, supported by tax incentives.
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âś… Supply & Construction
• Housing approvals remain well below targets: ~160,000 dwellings/year, vs. 224,000 needed under the National Housing Accord.
• Construction delays and high costs continue to constrain supply, keeping pressure on prices and rents.
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âś… Regional & City Highlights
• Brisbane: Strong growth (houses +5–7%, units +7–9%) driven by Olympics infrastructure and migration.
• Perth: Leading gains (houses +6–8%, units +3–5%) due to mining sector strength.
• Sydney & Melbourne: Moderate growth (houses +3–4%, units +4–5%) capped by affordability issues.
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