Australia's property market outlook: Steady Growth, Shifting Trends & What it means for You

Australia’s property market has been through its fair share of ups and downs over the past few years - Covid booms, interest rate hikes, affodability challenges, and now a new chapter. As we move through 2025, the outlook is surprisingly steady, with most experts tipping 4-5% annual price growth through to 2027. this growth is being Fueled by a combination of strong populations increases, ongoing demands from buyers, and a continued shortage of new housing supply as Construction struggles to keep pace. At the same time, recent rate cuts are starting to restore buyer confidence and boost borrowing capacity, while government incentives such as expanded first home buyer guarantee scheme are expected to bring more first-home buyer into the market.

However, these same factors are also adding pressure, with affordability stretched to record levels and many households balancing rising living costs alongside mortgage repayments. Behind the headlines, it’s a market of contrasts—houses are holding their value strongly, while units in some cities are struggling, and regional areas continue to attract attention from lifestyle seekers. Whether you’re looking to buy, sell or invest, the current landscape offers opportunities, but also calls for careful, informed decisions.

Written by David Melatti - Director of VIP Consulting