July 2025 Property Update
The Property Market is Splitting
Confidence is gradually returning to the property market. The Reserve Bank held interest rates steady at 3.85% this month, following the rate cut in May.
Combined with ongoing first-home buyer incentives, this is creating a sweet spot for buyers at the lower end of the market, particularly under $1,000,000.
3-Month Market Snapshot
National property values:
April +0.3% | May +0.4% | June +0.6%.
That’s five months of continuous growth since late 2024. Listings:
Advertised stock is 5.8% lower than this time last year, driving competition.
Rental market:
National rental index is up 1.3% for Q2 2025 — the slowest Q2 since 2020 — but yields remain strong, especially for units.
What We’re Seeing
The market is currently split into two stories.
1. Lower Price Brackets:
Freestanding homes under key price points are in high demand, driven by first-home buyers leveraging government incentives and investors competing for affordable stock. Properties in this range are selling quickly, often with multiple offers. Mainly the sub $1,000,000 price
2. Higher Price Brackets:
At $3 million and above, the market is patchy.
Quality properties that appeal to a wide range of buyers are still selling well above expectations. However, properties without strong appeal are struggling, with some vendors needing to adjust price expectations to meet the market
What We Expect Next
As we move into the second half of 2025, several trends are becoming clear: Low vacancy rates remain a challenge due to ongoing migration, which is keeping rental demand high.
There is broad expectation of further rate cuts later in the year, which could provide additional stimulus for buyers.
We expect the property market to finish 2025 higher than where it is today.
What This Means for You
If you’re thinking of buying a home, upgrading, or investing, this is a good time to plan your strategy before the spring rush.
For investors: The lower end of the market is competitive but also where we’re seeing the strongest rental yields and capital growth potential.
Ready to Take the Next Step?
If you or someone you know is looking to grow their property portfolio or buy in 2025, let’s have a conversation.
We can help you understand the best opportunities, develop a strategy, and move with confidence.
