Australian real estate pros predict house price rise in 2025

2025 housing market sees industry optimism

Australian real estate pros predict house price rise in 2025

News

By Mina Martin

According to CoreLogic’s latest industry report, Decoding 2025, a significant majority of real estate professionals in Australia – 65% – anticipate that house prices will climb in the coming year.

This optimism is fueled by factors such as enhanced affordability, rising incomes, and potential cuts to interest rates, gathered from insights of over 2,400 agents and finance professionals.

Queensland booms, Melbourne eyes recovery

The CoreLogic report highlighted Queensland as a particularly promising market, with 70% of respondents expecting house price growth, spurred by strong internal migration.

Conversely, Melbourne’s market is anticipated to recover from a recent dip, with the median dwelling value currently standing at $774,000, down 6.4% from its peak in 2022.

Agents in Melbourne are optimistic about a rebound, thanks to better affordability and a resurgence in demand.

Economic upswing signals modest market growth

Eliza Owen (pictured above), CoreLogic’s head of research, noted that the economic upturn in late 2024 is setting the stage for a revitalised property market.

“Despite some softening in the market in early 2025, it is expected conditions could pick up later in the year alongside lower interest rates, higher real income growth and improved affordability in markets like Melbourne,” Owen said.

However, she tempered expectations by predicting a milder pace of growth compared to 2024's 4.9%.

Challenges and adaptations for first-home buyers

The CoreLogic report also shed light on the struggles for first-home buyers, including prolonged savings periods and increased reliance on the Bank of Mum and Dad.

However, strategies such as seeking smaller, more affordable homes or adopting rentvesting are becoming more common as adaptive measures.

Policy focus and business priorities

With the 2025 federal election looming, housing supply is poised to become a critical policy issue. Almost two-thirds of the surveyed professionals cited this as a top priority for addressing affordability.

Owen suggested that “strategic housing policies targeting faster approvals, increased land release, and incentives for diverse housing types will be critical in addressing supply constraints.”

Emphasis on relationship building in real estate

The survey also identified nurturing contacts, converting website traffic into listings, and enhancing team prospecting culture as primary goals for real estate businesses in 2025.

Josh Symons, CoreLogic’s head of real estate solutions, stressed the importance of leveraging first-party data and digital tools like AI to maintain a competitive edge and improve client engagement.

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