Australian Property Market Update: 

March 2025 and April 2025 Outlook

As we approach the end of March 2025, the Australian property market continues to show resilience and growth, with positive trends expected to carry into April. Let's take a closer look at the current state of the market and what we can anticipate in the coming months.

March 2025: A Steady Rise

The Australian property market has maintained its upward trajectory in March 2025, with CoreLogic's national Home Value Index posting a 0.3% rise in February. This trend has continued into March, with most capital cities and regional areas experiencing modest but consistent growth.

Key highlights for March 2025:

• Melbourne and Hobart lead the capitals with a 0.4% monthly increase
• Sydney and Melbourne's premium markets are showing stronger performance
• Brisbane, Perth, and Adelaide continue to grow, albeit at a slightly slower pace
• The unit market is gaining strength, particularly in Brisbane and Perth

April 2025: Anticipating Further Growth

As we look ahead to April 2025, several factors suggest continued growth in the property market:

1. Interest Rate Cuts: Many experts predict that interest rate cuts will begin in April 2025. This could spark increased buyer activity and potentially lead to stronger price growth in the latter half of the year.
2. FOMO (Fear of Missing Out): With prices consistently rising and media coverage of new record prices, FOMO is expected to drive more buyers into the market.
3. Supply Shortage: The ongoing undersupply of housing, coupled with strong population growth, will continue to exert upward pressure on both house prices and rents.
4. Affordability Focus: As house prices become increasingly unaffordable, we anticipate stronger growth in the unit market, particularly for family-friendly apartments in desirable neighbourhoods.

Market Predictions

Several property experts have shared their forecasts for 2025:

• KPMG predicts house prices will rise by 3.3% over the next 12 months, with unit prices increasing by 4.6%
• Domain Group forecasts national house prices to increase between 4% and 6%, with units rising between 3% and 5%
• 65% of real estate agents expect house prices to rise in 2025, with 25% predicting gains exceeding 5%

Regional Outlook

While growth is expected across the board, some areas are likely to outperform others:

• Queensland, particularly Brisbane, is tipped for strong growth due to internal migration trends
• Perth is also expected to see significant price increases, driven by population growth outpacing supply
• Regional areas continue to attract investor interest, with locations like Broome, Rockhampton, and Geraldton among the top investment suburbs for 2025

As we move into April 2025, the Australian property market appears poised for continued growth. However, it's important to note that the market remains fragmented, with affordability challenges persisting in some areas. Buyers and investors should carefully consider their options and seek professional advice before making decisions in this dynamic market.