Adam Empringham,
Director of Sales at Image Property.
Key factors shaping the property market in 2025
The property market in 2025 is experiencing significant developments, influenced by economic shifts, policy changes, and evolving supply-demand dynamics.
While the rapid price growth of previous years has moderated, the market remains robust, offering opportunities for informed buyers, sellers, and investors.
Interest rates and housing affordability
The latest CoreLogic data reveals that interest rates continue to play a pivotal role in the property market. While the Reserve Bank of Australia has maintained the current cash rate, there is ongoing speculation about potential rate cuts later in the year.
In South-East Queensland, property values remain strong:
– Brisbane’s median house price has reached $977,343 as of January 2025, reflecting a 0.3% increase for the month and a 9.4% annual growth.
While property prices have continued to grow, evolving lending conditions and financial strategies can help buyers find opportunities that suit their needs.
Changes to lending policies
Mortgage lending policies are under review, with regulators considering adjustments that could provide greater borrowing flexibility.
– The mortgage serviceability buffer, which currently requires lenders to assess borrowers at three percentage points above their actual rate, may be lowered.
– A reduced buffer could increase borrowing power, making it easier for buyers to qualify for loans.
For those considering a move in 2025, staying updated on lending criteria and working with experienced property professionals can open new opportunities.
Migration and rental market demand
Migration continues to be a major driver of housing demand. While recent years have seen record-high population growth, migration levels are expected to slow down and settle at approximately 340,000 by mid-2025.
For renters and investors:
– Demand for rental properties remains strong, particularly in regions with employment growth and lifestyle appeal.
– Even as migration stabilises, rental availability is expected to remain competitive, making investment properties a valuable asset.
With rental markets continuing to perform well, investors can benefit from strong occupancy rates and consistent returns, while renters may find increased options as supply improves.
What this means for South-East Queensland
South-East Queensland remains one of the strongest property markets in Australia, with:
– Ongoing population growth, particularly from interstate migration.
– A desirable lifestyle, offering both coastal and urban living options.
– Major infrastructure investments, enhancing transport, amenities, and liveability.
Suburbs close to employment hubs, transport links, and lifestyle amenities are well-positioned to perform strongly, attracting increasing buyer and investor interest.
Need expert property advice?
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Our team of experts is ready to provide property advice tailored to your situation – get in touch with us to stay ahead of market trends and opportunities.
