Property markets across Australia show signs of cautious optimism and regional diversity

As 2025 progresses, Australia’s property markets are entering a new phase marked by cautious optimism and regionally diverse momentum, according to the latest PIPA National Market Update. The report, compiled from insights and analysis by market experts and PIPA members, highlights the evolving dynamics across the nation’s real estate landscape.

PIPA Chair Cate Bakos notes a resurgence in buyer confidence, spurred by recent interest rate cuts and enhanced government incentives. “While affordability remains a key constraint, especially in capital cities, lifestyle appeal, infrastructure investment, and structural undersupply are driving renewed activity in both metropolitan and regional areas,” Bakos says.

In New South Wales, the Sydney market is experiencing a measured recovery, with dwelling values increasing by 4.2% since the February rate cut. Demand is particularly strong in affordable, family-friendly areas such as St Marys and Mount Druitt, while regional centres like Newcastle and the Hunter Valley benefit from lifestyle migration and infrastructure improvements. “Sydney’s market continues to recalibrate, with selective demand driving activity across distinct pockets,” says Michael Safar, Director & QPIA at SAFORE. He adds, “Demand remains strongest for quality, well-located homes near established amenities and lifestyle centres.”

Victoria’s property landscape is also showing signs of rebounding buyer activity, especially in Melbourne’s outer suburbs, where competition is fierce in the sub-$950,000 bracket. “While overall values remain slightly below their 2022 peak, momentum is building across price segments,” Bakos explains. Dr Jenny Jia, Director & QPIA at JL Property Buyers Agent, notes that Melbourne’s dwelling values are still 2.7% below their 2022 peak. “However, the market has been gradually regaining momentum since early this year, with more buyers returning to the market with improved sentiments,” Jia says.

Queensland is witnessing a surge in buyer activity, particularly in southeast regions like Ipswich and Toowoomba, where open homes draw large crowds and properties often sell above asking price. “Buyer activity has accelerated across Southeast Queensland in recent weeks, coinciding with the launch of the new First Home Buyer incentives,” reports Melinda Granzien, Director, Buyers Agent & QPIA at Precision Property Buyers Agency. “Agents are being inundated with enquiry, making it increasingly difficult for genuine buyers to have their questions answered or to view properties in detail,” she adds.

Perth’s market remains one of the nation’s strongest, underpinned by population growth, a resilient economy, and government-backed deposit schemes. “With listings at historic lows and land sales surging, upward price pressure is expected to build,” Bakos notes. Andrew Black, Director & QPIA at Fundamental Invest, highlights that Perth’s property market is experiencing robust growth, further fuelled by the Federal Government’s recent 5% deposit scheme. “Recent data from the Real Estate Institute of Western Australia reveals that only 2,779 properties are listed for sale, a significant decrease from previous years,” Black says.

Adelaide continues its remarkable run, with sales volumes and prices steadily climbing, particularly in affordable northern suburbs and lifestyle-driven regional hubs like Victor Harbor and Moonta Bay. “The Adelaide market continues to defy gravity and remains one of the nation’s sturdiest property markets,” says Terry Ryder, Director at Hotspotting. He adds, “Our analysis shows that total residential sales in the latest quarter represented a 19% rise on the previous quarter.”

Tasmania and the ACT are also showing renewed strength. Tasmania’s market has been reinvigorated by the 5% deposit scheme and major renewable infrastructure projects, while Canberra is stabilising after a quieter 2024, with moderate growth forecast into 2026. “Since the 5% deposit scheme came into effect, activity has spiked dramatically,” notes Sam Spilsbury, Director at Buyers Agents Tasmania. Brady Yoshia, Founder & CEO of Brady Marcs Buyers Advisory, observes that the ACT property market is entering a phase of renewed stability and cautious optimism. “Auction clearance rates have steadied, and supply levels are holding firm, creating a more predictable environment for both sides of the market,” Yoshia says.

Overall, the national property outlook is one of steady, sustainable growth, shaped by affordability, infrastructure, and the enduring appeal of lifestyle-led living. As Bakos concludes, “Across the board, the national property outlook is one of steady, sustainable growth.”