Property market conditions set to vary widely across Australia in 2025

Australian property markets are expected to show significant regional variations in 2025, with smaller capital cities outperforming Sydney and Melbourne, according to a new industry forecast.

The 2025 Bricks & Mortar Media Property Forecasts Report suggests Perth, Adelaide and Brisbane will experience continued but moderating price growth next year.

Housing affordability constraints amid high interest rates are weighing on the Sydney market, while Melbourne faces additional headwinds from policy settings, subdued buyer demand and elevated listing volumes.

The report, which compiles insights from property experts across different market segments, indicates potential interest rate cuts could provide relief for homebuyers and investors in 2025, though the timing remains uncertain.

The forecast covers seven national market outlooks alongside specific analysis for New South Wales, Queensland and the mortgage sector.

Each market assessment examines key drivers, influential sectors and unexpected factors likely to shape property conditions.

The analysis focuses on four core questions including overall market performance expectations, key indicators to monitor, important sectors to watch, and surprising elements that could have lasting market impacts.

The comprehensive report aims to provide market participants with detailed insights into regional trends and sector-specific developments expected to emerge across Australian property markets in 2025.

The forecasts suggest property market outcomes will continue to diverge between regions, with some areas maintaining momentum while others face ongoing challenges from affordability pressures and local market conditions.