Australia’s Housing Market Outlook: What to Expect and Which Markets to Watch in 2025

We’re excited to share that over the weekend, InvestorKit’s Founder and Head of Research, Arjun Paliwal, was back on Australia’s leading morning program – Nine’s Weekend Today Show.

In this segment, Arjun broke down what’s shaping the housing market in 2025 and the markets to watch this year.

What’s Driving The Market Right Now?

• Undersupply: Housing supply is 30% lower than a decade ago despite strong population growth.
• Falling interest rates: Boosting confidence and driving more buyers back into the market.

Together, these factors are creating conditions for more price uplift across the country.

Key Markets to Watch

• Recovery markets: Melbourne, Bendigo, Albury-Wodonga, Mildura, Dubbo. These are all demonstrating rapid improvements in activity.
• Growth markets: Perth, Darwin, Townsville, Rockhampton, Geraldton. These areas demonstrating strong price movements.

Australia’s Rental Market

• Aussies are spending around 33% of disposable income on rent (20-year highs)
• Vacancy rates remain at just 1.2%
• Growth will continue, though the pace is expected to be slow due to affordability constraints

Arjun’s Advice for Buyer’s & Sellers

• Expect competition as rates ease – Don’t wait to act
• Focus locally — Established housing Supply and local economies drive a lot of the outcomes
• Build your team of experts to navigate the market with confidence

Looking Ahead

While outer-ring suburbs have led growth in recent years, inner and middle-ring markets are set to strengthen in 2025.

Catch the full interview below and hear Arjun’s expert take on how to navigate the year ahead

Footage from Today provided courtesy of Nine Network Australia Pty Ltd.