Welcome back to The Property Trio, where we bring you expert insights into the Australian property market. In this much-anticipated annual episode, David Johnston, Cate Bakos, and Mike Mortlock dive deep into their property market predictions for 2025, analysing key factors that will shape real estate trends across Australia.
What’s in Store for 2025?
The team unpacks their top 11 predictions for the year ahead, covering:
✔️ National property market performance – Will 2025 outperform 2024?
✔️ Capital city standouts – Which cities will lead growth?
✔️ Regional hotspots – Where will investors find the best opportunities?
✔️ Interest rate movements – When can we expect the first rate cut?
✔️ Government intervention – What policies will impact investors and first-home buyers?
✔️ Rental market & vacancy rates – Will affordability pressures ease?
✔️ New builds & supply issues – Are we on track to meet housing targets?
✔️ Global and local risks – What could derail the market’s momentum?
Key Takeaways from the Trio
🏡 David’s 2025 Property Market Predictions
🔹 Market Growth: Predicts 3%–6% national price growth, with Perth, Adelaide, and Melbourne among the strongest-performing cities.
🔹 Interest Rates: Three to four rate cuts, with the first likely in March or May.
🔹 Investor Activity: A 5%–10% rise in investor finance as rate cuts and rental demand drive investment decisions.
🔹 Regional Markets: WA, regional Queensland, and South Australia expected to see strong growth.
🔹 Biggest Risks: Waning productivity, government debt, and the risk of further tax increases on investors—particularly in states like Victoria.
📈 Cate’s 2025 Property Market Predictions
🔹 Market Growth: Expects national price growth of 6%–9%, with Adelaide, Perth, and Melbourne as the top capital city performers.
🔹 Interest Rates: Predicts a February rate cut, followed by another in July, with a total of 75–100 basis points cut for the year.
🔹 Investor Activity: Expects higher investor numbers than 2024, driven by rising rental yields and intergenerational wealth transfers.
🔹 Regional Markets: Top regional picks: Townsville, Tasmania’s regions, and Gold Coast.
🔹 Biggest Risks: Overseas migration decline, stock market volatility, and government intervention in the investor market through potential macroprudential measures.
📊 Mike’s 2025 Property Market Predictions
🔹 Market Growth: Expects slightly weaker growth than 2024, predicting 3%–4.9% national growth, with Perth, Brisbane, and Adelaide leading the pack.
🔹 Interest Rates: Expects two rate cuts in 2025, with the first in May and another in the second half of the year, for a total 50–75 basis points reduction.
🔹 Investor Activity: Predicts a 10% rise in investor finance, especially after the first interest rate cut.
🔹 Regional Markets: Picks Townsville, Toowoomba, and Gold Coast as the top-performing regional locations.
🔹 Biggest Risks: Insurance costs, global conflicts (US-China tensions, Middle East instability), and volatile resource prices affecting markets like Perth.
Want to Have Your Say?
Think the Trio nailed their Australia property market predictions for 2025—or missed the mark? Join the conversation on the Property Trio Facebook Group and let us know your thoughts! If you call it right, we’ll even give you a shoutout at the end of the year.