Australian Property Market Update - March 2025

For Australians living abroad, keeping an eye on the property market back home is more important than ever. Whether you're planning to return, invest, or simply stay informed, recent trends offer a mixed picture of opportunity and caution.

Property Prices Remain Resilient — But Growth Is Slowing

Nationally, property prices continued to rise in early 2025, albeit at a slower pace than the previous two years. According to CoreLogic’s March data:

• Sydney home prices are up 6.8% year-on-year
• Melbourne is up 3.2%
• Brisbane continues to lead with a 10.1% annual increase
• Adelaide and Perth also show strong growth, up 9.3% and 11.7% respectively

The slowdown in growth suggests the market is stabilising after the post-pandemic boom, but underlying supply shortages continue to support prices — particularly in cities with high population growth.

Auction Clearance Rates Hold Firm

Auction activity in 2025 has started strong, with clearance rates hovering around 70% nationally — a sign that buyer demand remains solid despite affordability pressures and cost-of-living concerns.

• Sydney and Melbourne continue to dominate the auction scene, with weekly clearance rates often in the mid to high 60s.
• Brisbane and Adelaide, while less auction-centric, are seeing high private sale activity and strong buyer competition.
  
  

These clearance rates signal market confidence, though buyer sentiment may shift if economic conditions tighten further or interest rates rise again.

Supply Constraints Still a Key Driver

Australia’s housing market continues to be driven by a fundamental supply shortage. The National Housing Accord’s goal of 1.2 million new homes by 2029 faces mounting challenges — including slow planning approvals, labour shortages, and rising construction costs.

This lack of new supply is keeping upward pressure on prices and rents, especially in major urban and regional growth corridors. For returning expats or offshore investors, this means housing stock remains competitive and in some areas, scarce.

Rental Market Tightness Remains

Vacancy rates remain below 1% in many capital cities, with rents up more than 10% year-on-year in Sydney, Brisbane, and Perth. Expats returning to Australia are being advised to plan early, as rental shortages are making relocation more difficult in many suburbs.

What This Means for Australians Overseas

• If you’re looking to invest: The market still favours sellers, but the pace has eased, offering more balanced conditions. Look beyond the capitals for emerging opportunities
• If you’re planning to return: Be aware of both rental and purchase competition — especially in high-demand cities like Brisbane and Perth.
• Buying from overseas? Be mindful of recent restrictions — from April 2025, non-residents (including Australians not considered tax residents) are temporarily banned from buying existing homes.

 The Australian property market is cooling from its peak but remains price-resilient thanks to low supply and strong demand.

Clearance rates remain healthy, and while affordability is stretched, growth continues in key cities and regions.