Australia’s property market is showing signs of stability, providing confidence for both homeowners and investors looking at long-term growth. While the rapid price surges of recent years have eased, steady demand and strong fundamentals continue to support a resilient housing market.
According to property expert Terry Ryder, market conditions in 2025 will remain promising despite ongoing challenges. He notes that while vacancy rates are expected to stay low “the rate of rental growth generally will slow because markets have hit a ceiling due to limits in the capacity of tenants to pay more.”
This suggests a shift toward more sustainable rental conditions, which could benefit both investors and tenants.
Why stability matters in the property market
After a period of rising interest rates and economic uncertainty, a stable market is a positive sign for buyers and homeowners alike. It means fewer dramatic price swings, making it easier to plan for the future—whether you’re purchasing your first home, upgrading, or investing.
Market stability also indicates that demand remains strong, supported by factors such as population growth, housing shortages, and steady employment levels. However, Ryder warns that “most state governments will continue to make the housing crisis worse with anti-investor policies,” which could impact future housing supply and affordability.
Which markets are showing the most promise?
Ryder highlights Adelaide and Brisbane as two cities that will “continue to show solid growth next year.” Their affordability, strong local economies, and increasing demand make them attractive options for buyers and investors.
Meanwhile, Melbourne, which has underperformed in recent years, is expected to “start to rise again in 2025, thanks to the price differential with Sydney and its high population growth.” This could present opportunities for those looking to enter the market before prices climb.
What this means for mortgage holders and buyers
For those with a mortgage, a steady market can help maintain home equity and financial security. If you’re considering refinancing, now could be a good time to assess your loan options and secure a competitive rate.
For buyers, stability can mean less pressure to rush into the market. With inflation easing and interest rates potentially holding steady, there may be more opportunities to enter the property market with confidence.
Looking ahead
While short-term fluctuations will always be part of the market, Australia’s property sector continues to show resilience. Staying informed and working with a trusted mortgage broker can help you navigate the landscape and make smart financial decisions.
At UFinancial, we’re here to guide you through every step of your homeownership journey. Whether you’re looking to buy, refinance, or invest, our team can help you find the right loan for your needs.
Need expert advice? Contact UFinancial today.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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