Property markets show varied growth across Australia, Perth leads with highest annual gains

Diverse property market conditions characterised the first quarter of 2025 across Australia, with Perth recording the highest annual growth among capital cities at 14.3 per cent, according to the latest PIPA National Market Update.

The report, which combines analysis from market experts and PIPA members, reveals NSW’s property market is showing recovery signs after the recent interest rate cut.

PIPA Chair Nicola McDougall said the NSW property market is showing signs of recovery, buoyed by the recent interest rate cut, steadier property values, and growing confidence among buyers.

“The property market in Victoria is showing specific pockets of opportunities despite challenges like policy uncertainties,” Ms McDougall said.

“Melbourne is particularly attractive due to affordable housing options, with increasing demand for well-located units in areas like Carlton.”

Queensland’s real estate market remains strong despite a slowdown in growth momentum, particularly in regional areas.

“Regional areas like Mackay and Townsville lead with significant increases, while Brisbane sustains positive growth trends, especially in units and townhouses,” Ms McDougall said.

“Population growth, limited housing supply, and rising construction costs continue to drive demand.

“Meanwhile, Adelaide remains a key market for investors due to its affordability, diverse property options, and robust economic growth fuelled by large-scale projects like the AUKUS submarine initiative.”

Perth continues to show strong property values despite moderating growth.

“Despite moderating growth, limited supply, high rental yields, and affordability compared to other states ensure sustained demand in this market,” she said.

According to Rich Harvey, CEO and Founder of PropertyBuyer, the NSW market has entered the year with measured optimism.

“The NSW property market has entered 2025 with cautious optimism, supported by a modest interest rate cut, stabilising values, and improving buyer sentiment,” he said.

“While market dynamics remain nuanced, especially across different price points and regions, data from CoreLogic suggests a gentle rebound is under way after a flat end to 2024.”

Sydney’s auction activity has rebounded after a slow January, with a preliminary clearance rate of 81.7 per cent in mid-February, the highest since late 2021.

In Victoria, Hotspotting Director Terry Ryder identified specific areas of opportunity across the state.

“Generally, we see Melbourne and Regional Victoria as an opportunity to buy well, for those who can disregard the negatives from the State Government,” he said.

Units in Carlton are offering strong yields for investors, with its location near multiple universities creating high rental demand.

“Carlton is close to the University of Melbourne, the CBD campus of RMIT University and the Fitzroy campus of Australian Catholic University and has one of the highest concentrations of university students in Australia,” he said.

Queensland’s property market continues to grow at a slower pace, with regional areas outperforming expectations.

“Mackay saw a strong increase of 5.7 per cent, Townsville rose by 5.1 per cent, and Gladstone experienced 4.3 per cent growth over the past three months,” said Andy Adams, QPIA and Buyers Agent at Streamline Property Buyers.

Brisbane maintained positive growth momentum despite a slight dip from the previous quarter, with units and townhouses outperforming houses.

Adelaide’s property market continues to attract investors due to its affordability and growth potential, according to Dr. Kevin Hoang, Senior Economist at inSynergy Advisory.

“Adelaide is consistently among the top performing cities in Australia for capital growth in recent years. In the 12 months to February 2025, median house prices increased by 12 per cent,” he said.

The AUKUS submarine project is expected to have a major economic impact on South Australia.

“At the top of the list is the AUKUS nuclear-powered submarines project, valued at $400 billion over the next 30 years. This is the largest defence project in Australia’s history and is expected to create 20,000 direct jobs,” Dr. Hoang said.

Perth’s property market has continued its upward trajectory, though at a slower pace after five years of strong growth.

“Perth recorded a 0.3 per cent lift in dwelling values over February and a robust 14.3 per cent increase over the past 12 months – the highest annual growth of any capital city over this period,” said Matthew Hughes, Managing Director of Capital Property Advisory.

In the ACT, the property market is showing signs of stability after a subdued 2024.

“The ACT property market shows stability after a subdued 2024, with early signs of balance for buyers and sellers. Modest auction clearance rates indicate a market adjusting to economic shifts,” said Brady Yoshia, Founder and CEO of Brady Marcs Buyers Advisory.

Tasmania’s market has started 2025 strongly with sales volumes exceeding expectations, though rental affordability remains a challenge.

“The Tasmanian market is starting 2025 strong, experiencing significant growth and transformation, driven by both economic dynamics and large-scale infrastructure projects,” said Samantha Spilsbury, Director of Buyers Agents Tasmania.