Weekly Market Update (27 June 2025)

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Weekly Market Update (27 June 2025)
  1. Brisbane’s Property Market (Source: Brett Warren)
    The Brisbane property market is experiencing a significant boom, but many buyers are struggling to keep up due to rising house prices, particularly in inner suburbs. The affordability gap between buyer budgets and listing prices is widening, with some suburbs seeing a mismatch of up to $800,000. This trend is pushing buyers towards medium and high-density living, such as townhouses and units, and leading to a shift in demand towards outer suburbs and growth corridors. Investors are advised to focus on medium-density housing, particularly in areas with strong population growth and infrastructure investment. The report also suggests that the market is experiencing a supply-side issue, with a lack of larger, quality townhouses and apartments to meet the rising demand.

 

  1. NSW investors (Source: Emilie Lauer)
    NSW investors have been dominating the property market in Queensland, with nearly a quarter of investment properties in the Sunshine State being purchased by southern investors, according to Westpac data. Queensland offers strong rental yields and affordability, making it an attractive investment target for NSW buyers. The state’s property market has seen significant growth since the COVID-19 crisis, with house values increasing by 61.22% and unit values rising by 66.23% over the last five years. Regions like Mackay, Gladstone, Toowoomba, and Townsville have seen a surge in interest from NSW investors due to their affordability and strong rental yields. Despite the influx of NSW buyers, Queenslanders own just 1% of NSW investment properties.

 

  1. Pain & Gain Report (Source: Cotality)
    The March 2025 quarterly Pain & Gain report revealed that 94.9% of property resales delivered a profit, with total gross resale profits reaching $31.7 billion. The housing market is in transition, with profitability expected to rise following rate cuts, which have already lifted values by 1.3% in the three months to May. Houses dominated resale gains, with 97.2% of house resales delivering a profit, compared to 90.1% of unit sales. Short-term resales rose amid the rate cycle shift, and regional areas outperformed capital cities in profitability.

 

  1. Price Forecast Report (Source: Domain)
    The Domain Price Forecast Report predicts that house prices in Sydney and Melbourne will experience significant growth over the next year, with Sydney’s median house price projected to reach a record $1.83 million and Melbourne’s median house price expected to surge to a record $1.11 million. The growth is attributed to lower borrowing costs, demand, and targeted support for first home buyers. However, the pace of growth in Perth, Brisbane, and Adelaide markets is expected to slow. The report also notes that affordability and local factors will heavily influence price growth in the Sydney and Melbourne markets.

 

  1. Investors (Source: Gemma Crotty)
    Perth is a popular destination for Australian investors, with over 60% considering crossing state borders for their next property purchase. The Momentum Wealth Property Sentiment Report 2025 revealed that 67.1% of respondents would look beyond their state for investment opportunities. Perth was named the best place to buy an investment property by 48.7% of respondents due to its affordability, strong rental yields, and sustained buyer demand. Melbourne and Brisbane followed as the second and third most appealing capital cities for property investment, respectively. Investor sentiment has improved across various states, with Queensland investors being the happiest. Nearly one in three respondents plan to buy an investment property in the next 12 months.

 

  1. Brisbane property owners (Source: Property Buzz)
    Brisbane homeowners have seen higher 10-year returns on their properties compared to the average super fund return of 5.7% per year. The top-performing Brisbane suburbs for property growth include Chandler, Robertson, and Anstead, with annual compound growth rates of 11.8%, 10.9%, and 10.6% respectively. The recent tax changes on superannuation earnings for balances exceeding $3 million may impact an estimated 80,000 Australians, and retirement savings are encouraged to be a priority.

 

  1. QLD shared equity scheme (Source: Liam Garman)
    The Queensland government has launched a $165 million shared equity scheme to help first home buyers purchase properties with as little as a 2% deposit. The scheme offers up to a 30% equity stake for new homes and 25% for existing dwellings, with a cap of 1,000 places over two years. Eligible buyers can purchase homes valued up to $1 million, and income thresholds are set at $150,000 for singles and $225,000 for couples. The budget also includes an extension of the stamp duty freeze for first home buyers and an increase in the First Home Owner Grant to $30,000. The Real Estate Institute of Queensland (REIQ) welcomed the scheme, describing it as a targeted support measure in a high-priced market. The government may expand the program beyond the two-year trial, depending on uptake and results. The shared equity model is being trialled in Victoria and federally.

 

  1. Investor activity (Source: PropTrack)
    A recent study shows a surge in investor activity, with new investor loans reaching nearly decade-high points due to the tightening rental market. Investor selling activity is also high, particularly in Victoria, leading to a decrease in available rentals and rising rent prices. Despite this, Victoria remains relatively affordable for renters. Investor refinancing also reached record highs in the first quarter of 2025, with many investors taking advantage of falling interest rates to enter or re-enter the market.

 

  1. Construction costs (Source: Sebastian Holloman)
    Construction costs are expected to remain elevated in most Australian capital cities, with Sydney and Brisbane experiencing the highest escalation. Sydney’s construction sector is forecasted to have a solid performance, while Melbourne is set for a long-awaited turnaround with moderating construction cost increases. Perth’s construction sector remains strong, and conditions are expected to strengthen further. The report also suggests that initiatives like the first home buyer scheme and potential interest rate cuts could boost residential and commercial construction activity. However, persistent cost pressures and a lack of investment in skills and materials capacity could lead to multispeed performance across various Australian markets.

 

  1. CoreLogic Auction Results (Week ending 22 June 2025)
    (Total Auction / Clearance Rate)

    – Sydney: 778 / 67.6%
    – Melbourne: 927 / 65.6%
    – Brisbane: 152 / 55.6%
    – Perth: 5 / 40%
    – Canberra: 65 / 56.9%
    – Adelaide: 77 / 67.5%
    – Tasmania: NA / 0%
    – Combined Capitals: 2,004 / 65.3%

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