Australian Property Prices Set to Rise in the Latter Half of 2025

Australian property prices are poised for a notable upswing in the second half of 2025, driven by seasonal trends, macroeconomic shifts, and regional dynamics. When looking at anticipated growth, there are many factors contributing to a season boost in property prices.

There is of course, the traditional spring surge in both property buyers and sellers, interest rate speculation influence, and the ‘home by Christmas’ dream that all contributes to an upswing in property prices for the second half of 2025.

Seasonal dynamics- A Surge in Spring

Spring has traditionally proven to be a buoyant period for the Australian property markets. It likely comes down to a combination of the warmer weather (bringing people to open property inspections), longer daylight hours, and the conclusion of winter bringing positive moods and encouraging more property listings and buyer activity.
Spring enhances the visual appeal of properties, meaning picky buyers are more likely to be satisfied with the properties presented. Additionally, improved buyer sentiment often coincides with stability or small cuts in interest rates. The Reserve Bank holding rates steady as spring begins tends to boost confidence.

First Half of 2025 Performance

What are the top performing suburbs in the first half of 2025?

Looking back over the first six months of 2025, several suburbs across Australia have demonstrated exceptional growth:

New South Wales (NSW)

• Dulwich Hill: Located in Sydney’s Inner West. Dulwich Hill has a median house price of $2,230,000, that has a projected annual growth rate of 7.4%, making it one of the top performing suburbs to consider in 2025. Location is key here alongside the recent investment in infrastructure bringing transport links and increased liveability.

Queensland (QLD)

• Emerald: This Central Queensland mining town recorded a 13.7% rise in median house prices over the 12 months ending May 2025, reaching $415,000. The growth is attributed to strong demand from buyers in Brisbane, Sydney, and Melbourne to buy in an affordable area and is popular for investors as it is an important freight and logistics hub for Central Queensland.

South Australia (SA)

• Adelaide: The city has emerged as one of Australia’s strongest-performing property markets, with median dwelling values now sitting at $829,695, representing an annual growth of 8.6% to 9.8%. This capital city has stood quiet for some time but is now rising on the radar for many property buyers.

Western Australia (WA)

• Perth: According to CoreLogic data, Perth experienced a 17.6% annual house price growth, making it one of the top-performing cities in the country. With such a large increase in annual house price growth, buyers need to be wary of where Perth is currently sitting on the property clock. For many investors it may be too late to get into the market, and we are expecting this market to peak out.

Australian Capital Territory (ACT)

• Canberra: Canberra’s housing sector showed stability, some slight but gradual gains though yet to surpass previous peaks. Dwelling values hovered near break-even point, with many suburbs declining in dwelling values. Although the ACT has started 2025 quite sluggish, Canberra’s property market has been predicted to see modest price increases of up to 3% by the end of 2025.

Tasmania (TAS)

• Tasmania’s property market in the first half of 2025 showed clear signs of steady recovery, with regional growth outpacing the capital—Hobart saw modest gains (approximately 2.2 % year-on-year, with monthly growth around 0.45 %) while areas like the West & North-West led the state with annual increases of about 5.6 %

Northern Territory (NT)

• Smaller regional centres like Alice Springs saw slight momentum, with the median house price reaching $535,000 (median unit price at $295,000), with house rents up 3.5% to $590 weekly.

Second Half of 2025 Predictions

As we move into the second half of 2025, the Australian property market is set to experience a period of growth, driven by seasonal trends, favourable economic conditions, and regional dynamics. The traditional spring surge, combined with anticipated interest rate cuts and ongoing demand in key cities like Brisbane and Adelaide, suggests a positive outlook for property prices nationwide. We would like to take a closer look at Brisbane and Adelaide as investment choices for 2025.

Focus on Brisbane: Poised for Growth in Late 2025
Brisbane’s property market is expected to experience a strong resurgence in the latter half of 2025. Factors contributing to this anticipated growth include:

• Interest Rate Cuts: With further interest rate cuts likely on the horizon and inflation trending toward the RBA’s target range, the macroeconomic environment is becoming more supportive for property buyers and investors alike.
• Affordability: Brisbane’s property market remains more affordable compared to Sydney and Melbourne, attracting both investors and homebuyers seeking value.
• Population Growth: Strong interstate migration continues to bolster demand in Brisbane, particularly in outer-ring suburbs.
• Infrastructure Development: Ongoing infrastructure projects due to the highly anticipated 2032 Olympics are enhancing connectivity and liveability, further increasing the city’s appeal, and influencing migration. According to NAB’s latest Brisbane house price forecast, there is a potential growth of +5.4% in 2025, while Westpac’s forecast sits at a slightly more conservative +3.0%.

Adelaide: Sustained Momentum into the Second Half
Adelaide is well-positioned for sustained growth through the rest of 2025.
Property investors are increasingly drawn to Adelaide, South Australia, due to its compelling blend of affordability, strong rental yields, and consistent capital growth. With median dwelling values around $822 000, significantly lower than those in Sydney, Melbourne, or Brisbane, Adelaide is still delivering reliable growth and returns. In 2024, Adelaide outperformed most other capitals, recording 12.4% growth for houses and 12.2% for units, challenging Perth’s position and highlighting its upward trajectory.

Adelaide’s property market has shown remarkable resilience and is expected to maintain its momentum into the latter half of 2025 due to its combination of liveability (highlighted by Adelaide’s consistent ranking among the world’s top cities), affordability, and strong economic fundamentals.

Key drivers of the Adelaide market include:

• Interest Rate Cuts: KPMG Chief Economist Dr. Brendan Rynne has predicted that the anticipated rate cute will bring price growth to Adelaide in the second half of 2025.
• Limited Housing Supply: A constrained housing supply continues to support price growth in the city.
• Population Growth: Ongoing population increases, and robust interstate migration are fuelling demand, as the supply matrix is skewed to demand outweighing supply.

Affordability: Adelaide remains more affordable than other major cities, attracting both investors and first-home buyers.

Look to Regional Centres for Affordability and Growth

If you’re looking to invest, there is expected to be solid growth across some large regional centres, up to 10% on average. This may occur in regions with acute supply constraints but strong demand. To mitigate risks on your regional investment, look for centres that offer education, health, transport, and lifestyle options, as well as government spending on infrastructure (projects in the pipeline), and multiple industries that drive the local economy. Checking the local vacancy rates, migration trends, and expected yields are all important when investing regionally.

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