5 Predictions for the Australian Property Market in 2025

As we wrap up 2024, it’s a great time to reflect on the property market and what we can expect moving forward. The past year has been dynamic — interest rates held steady after the last increase in November 2023, and migration to Queensland has soared!

Here are 5 key takeaways from 2024 to set the stage for the coming year:

Queensland continues to lead domestic migration, with over 32,000 people moving from other states compared with just 537 migrating to Victoria.

Australian home values rose 0.1% in November, marking 22 consecutive months of growth.

Regional Queensland hotspots like the Sunshine Coast and Hervey Bay are experiencing increased property demand.

Perth (1.1%), Adelaide (0.8%) and Brisbane (0.6%) led mid-sized capital growth.

Properties are selling faster than most of the rest of Australia, with the average days on the market in Queensland down to just 30 days.

And now, here are my 5 predictions for 2025, based on these insights:

1. Queensland will keep attracting new residents in 2025

It’s no secret — Queensland is the place to be!

Recently ranked the happiest city in Australia and 21st globally by the Global Index, Brisbane’s appeal is undeniable. With over 500 people moving to Queensland every week, the demand for housing is set to keep soaring. Whether it’s for better lifestyle opportunities, affordable housing or a more relaxed pace of life,

In 2025, Queensland will remain a magnet for interstate migration. This means competition for properties and more opportunities for those who are ready to move quickly.

2. Brisbane’s Property Market will continue to outperform in 2025

Brisbane is gearing up for another standout year in 2025. According to Louis Christopher, Managing Director of SQM Research, Brisbane is forecasted to see strong dwelling price increases of 9% to 14%, marking its 12th consecutive year of price growth.

The indicators are clear: housing shortages in Brisbane are more pronounced now (and going into 2025) than they were at the end of 2023, which is powering competition and pushing prices higher. Interstate migration is expected to stay strong and job growth looks like it will keep going up.

Both factors will continue to boost demand for housing in the Queensland area.

3. Regional Hotspots: Sunshine Coast and Hervey Bay will lead the way

The Sunshine Coast and Hervey Bay are quickly becoming the stars of Queensland’s property market.

The Sunshine Coast, for example, has seen a dramatic 20% drop in days on the market (9 fewer days than average), and vendor discounting has also plunged, which indicates a seller’s market.

From my experience, quality properties in the $600K – $1.2M range are being snapped up within days, reflecting a competitive environment. In Hervey Bay, properties are selling faster than ever, even in the off-market space, where buyers are acting quickly to secure hidden gems.

4. Sydney and Melbourne real estate will struggle

While Brisbane and regional areas thrive, Melbourne has seen housing values decline in 10 of the past 12 months, including a 0.4% drop in November. Sydney’s market peaked in August, with consecutive declines in October and November.

While they’ve always been the ‘go-to’ markets when looking to buy or invest in property in Australia, the data as of late has been generally against Melbourne and Sydney – and 2025 seems to be continuing this trend.

5. Limited housing supply will drive real estate demand (fast!)

As migration continues to pour into Queensland, the absence of available housing is becoming more distinct. Building costs, red tape and delays in council approvals are slowing down new developments, which means supply is struggling to keep up with demand.

I’ve personally spoken with clients who’ve waited for months just to get their plans approved and this is reflected in the broader market. This gap between supply and demand will continue to fuel competition and ultimately, property prices.

For buyers, it's crucial to act fast, especially as demand increases in 2025.

2025 is the Year to Make Your Property Purchasing Move

With the market moving at such a fast pace, having the right support is more crucial than ever.

From navigating complex negotiations to identifying the best property opportunities, a skilled Buyer’s Agent can make all the difference when trying to secure a great deal in 2025.

With properties selling within days, often before they even hit the market, expert guidance ensures that you’re not left behind.

As we look to 2025, the Australian property market presents exciting opportunities, especially in Queensland.

With ongoing migration trends and strong growth predictions for Brisbane, the future is bright for savvy buyers and investors.

A lot of properties were bought in 2024

I want to extend a huge thank you to all my clients and referral partners for an incredible 2024. Whether it was:

  • helping a Sydney-based lawyer secure their first home
  • guiding a busy Sunshine Coast family to their dream property or
  • assisting busy professionals and interstate investors

I’m deeply grateful for the trust you’ve placed in me.

It’s been a pleasure working with so many diverse clients, including first-time buyers and seasoned investors and I look forward to what the next year brings.

As always, whether you’re looking to move or invest, I’m here to provide the insights and support you need.

Let’s make 2025 the year you make your next smart property move!

Are you considering buying or investing in the property market on the Sunshine Coast, Hervey Bay or Southeast Queensland?

If so, I’m here to help you navigate this exciting opportunity.

At Worth Property Investing, my team and I are genuinely passionate about guiding you toward making the right investment choices that align with your financial goals and lifestyle aspirations.

If you’re ready to take the next step in your property journey, I invite you to contact me for a consultation. Together, we can discuss how a buyer’s agent can support you in making a patient, quality-driven property purchase that meets your needs and aspirations.

Reach out today!

Please note: This article is not to be considered financial advice and is not intended as financial advice as it does not take into account your specific circumstances. For specific financial advice, speak to your financial advisor.