Real estate agents predict property price growth in 2025 despite market challenges

Two-thirds of Australian real estate professionals expect house prices to rise in 2025, driven by improving affordability and potential interest rate cuts.

CoreLogic’s annual Decoding 2025 report, which surveyed more than 2,400 industry professionals, found 65 percent predicted price growth, with 25 percent expecting gains above 5 percent.

Queensland emerged as the most promising market, with 70 percent of respondents forecasting price increases due to strong internal migration.

CoreLogic’s Head of Research, Eliza Owen, said economic conditions would support increased buyer activity.

“Improving household savings and easing interest rates are expected to drive demand later in 2025, even as supply challenges persist,” she said.

“Despite some softening in the market in early 2025, it is expected conditions could pick up later in the year alongside lower interest rates, higher real income growth and improved affordability in markets like Melbourne.”

The survey revealed Melbourne’s median dwelling value had fallen 6.4 percent from its 2022 peak of $801,000 to $774,000.

First-home buyers faced continued challenges, with 87 percent of agents reporting longer savings periods and 77 percent noting increased reliance on parental financial support.

Housing supply emerged as a key election issue, with 63 percent of respondents identifying it as the top policy priority for addressing affordability.

“Strategic housing policies targeting faster approvals, increased land release, and incentives for diverse housing types will be critical in addressing supply constraints,” Owen said.

The report also highlighted real estate agents’ business priorities, with 84 percent focusing on nurturing contacts and 83 percent aiming to convert website traffic into listings.