2025 Australian Property Market Price Growth

Property prices continued to increase in value in 2025 with some markets doing well above 10% capital growth.

Some locations grew extremely well and some locations didn't perform. Highlighting that you can't blanket the Aus Property Market under the one blanket. 

We are breaking down the performance over the last 12 months and what some of the data isn't showing you!

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Chapters

• 0:00 National Market Snapshot
• 1:13 Policy Shifts And Buyer FOMO
• 2:21 City-By-City Growth Breakdown
• 5:10 Darwin’s Spike And Caution
• 6:03 Capitals Vs Regionals Performance
• 7:39 Why Suburb-Level Data Beats Averages
• 11:05 Three Melbourne Suburbs Case Study
• 12:30 The Cost Of Waiting To Buy
• 12:48 Wrap-Up And Listener Requests

Transcript

SPEAKER_00: 0:00

Property prices continue to increase in value in 2025 with some markets doing well above 10%. Some locations grew extremely well while others sat flat and didn't do anything. This highlights that the Australian property market isn't one market and you can't blanken it all together in the same basket. We are breaking down the data and the performance over the last 12 months of the Australian property market and also what some of the data isn't showing you. We had Perth come back into the mix. Brisbane with some massive growth. Regional locations did outperform capital cities. If you sit and you wait 12, 24 months to purchase, your price point's going to be higher, your yield's going to be lower. That means you have to borrow more money for the exact same asset. My name is Casey Taylor, and I'm the host of the Tailored Property Wealth Podcast. We talk everything relating to property investing and helping you, as the viewers and listeners, educate yourself around everything property investment related. I'm going to get straight into this one today. It is data heavy. However, it really highlights how the performance over the last year has gone in the Australian property market. A quick recap from last year: we did have three rate reductions across the year, which has sparked some interest. Some people taking action again where they were sitting waiting for those rates to drop a little bit in value. We also had some first homeowner grants live from the 1st of October with the caps increasing across the board for first home buyers. And this really sparked some locations and the more affordable locations within some of those capital cities. Prices did some crazy jumps because people were getting FOMO. They were jumping in before the announcements. And then quickly after that, there's been solid demand. So you can't predict these things sometimes. It happens very quickly. Some of the numbers are pretty crazy across the board. So as per catality in December 2025 on the 31st, Sydney grew in value by 5.8%. The median value is$1,280,613. For the month of December, Sydney went backwards 0.1 of a percent. And for the quarter, it had performed at 0.8%. The Melbourne property market annually grew by 4.8%, with the median value sitting at$827,117. For the month of December, it also went backwards the same as Sydney, 0.1%. The quarterly growth was also 0.8%. Brisbane with some massive growth, 14.5% for the 12 months. The median value now sitting at$1,036,323. For the month, it grew by 1.6%. For the quarter, it grew 5.6%. So there's a lot of people saying Brisbane's overcooked, but it's still done solid performance well above 10%. Some of the areas we're still purchasing in are well within affordable brackets, and there is a massive amount of demand there still at the moment. Adelaide grew annually 8.8%. For the month of December, it grew 1.9%. And for the quarter, it grew 5.1%, with the median value sitting at$902,249. We had Perth come back into the mix with 15.9% capital growth in the last 12 months. The median value of Perth sitting at$940,635. It grew 1.9% for the month of December. So some massive growth there across Brisbane, Adelaide, and Perth. Adelaide and Perth doing the top growth for the month. They are tied and then Brisbane close by. We have Hobart. It did 6.8% growth over the 12 months. Median value$720,341. For the month, it grew 0.9%. And for the quarter, it grew 3.6%. Darwin has actually done the most performance over the last 12 months. 18.9% over the 12 months, with the median price point being$586,912. Monthly, it grew by 1.6%. And for the quarter, it grew by 5.4%. Now Darwin is Darwin is something we are going to do a topic on in the next couple of episodes because it's a really important one to take a look at and look at the fundamentals. There is a lot of buyers' agents going into this marketplace at the moment, and they are propping this market up. If we look at the long-term history of Darwin, it's going to give us a good indication of what's going to happen there. We are long-term investors with a long-term mindset and we don't get influenced by the next hotspot that can be inflated through massive volume. So that's an episode that we will do shortly in the future. We have Canberra. It did annually over the last 12 months 4.9%. The median value of Canberra is$893,907. For the month of December, it grew 0.2%. And for the quarter, it did 2.2%. And that really highlights across the capital cities that they're all different marketplaces. They've got their own ecosystem and how they perform. Just to recap, the combined capitals for the month, the combined capitals grew 0.5%, for the quarter, 2.7%, and annually 8.2%. The median value across the combined capitals is$991,331. Pretty solid average annual capital growth rate at 8%. Anyone who is generating 8% a year is extremely happy. That means that property is doubling in less than 15 years. The combined regionals on a monthly basis did 1%. For the quarter, 3.5%, and annually 9.7%, with the median value coming in at 734,351. So for the 12 months, regional locations did outperform the capital cities. We focus on metro locations because we focus on the consistent long-term growth. So it is something to keep an eye on the disparity between capitals and the regionals. That is the data as per totality for the 12 months, for the quarters, and for the month. Now something that I want to touch base on is around Melbourne and the growth across the Melbourne marketplace. So if we look at this over the last month, over the last quarter, over the last year, it's gone backwards for the month of December, 0.1%. For the quarter, only grown 0.8%, and annually it has grown 4.8%. This is why we don't just look at just the capital city or the location as a whole. Because once we break down this into individual local government areas and individual suburbs, it can paint a very different picture on what is actually taking place. And because where we go into marketplaces, we are always pushing the most affordable locations within those capital cities. And that is because it has more room for growth. And what happens is once some marketplaces become unaffordable, we see that demand shift and move to those more affordable locations. I'm going to go through a couple of suburbs that we have purchased in over the last 12 months for clients in Melbourne, where it's a very different story on the capital growth of those suburbs and the properties that we've secured for clients, which is very different to Melbourne and the data as a whole. So one of the suburbs that we've been purchasing in since the start of last year, it now has a median value of 576,000. It has done 11.9% capital growth in the last 12 months. When we started to go into this marketplace, it had essentially sat flat for the last 12 months. It was sitting at about going backwards 2%, which is very minimal. But it started to heat up, it started to shift, and that marketplace is early in its growth cycle. And this is where having that professional who understands supply and demand and some of the things going on within those locations is imperative. Median days on market has dropped about 13% in this location as well. So it is something that you want to be looking for when you're purchasing. It's also important to note that rental yields have actually dropped because capital growth has outpaced rental income growth. And that's something people don't get when they purchase. Is that if you sit and you wait 12, 24 months to purchase, your price point's going to be higher, your yields going to be lower, which means you're not actually saving on your cash flow if you're waiting for the interest rates to go backwards even further, for example. Now, suburb number two that we secure in has a median value of$695,000. And it has done 9.3% over the last 12 months. Again, actively sourcing property within this location over the last 12 months and again sitting flat, or it was going backwards around 2% as well. It's really shifted over the last 12 months and again early within its growth cycle. One more suburb that we've actively been going into for the last 12 months has also done 6.6% capital growth. Not as high as those other couple, but still trending in that right direction as it continues to build up steam. Median vendor discount in this location as well has dropped by 9%. Okay. And median days on market sitting around the same. So that demand is there. This is where it's really important to not just look at one capital city and the data on that individual capital city, but looking down to a local government area and to a suburb level. If you understand the metrics, there is still performance, even though, as a whole, the property prices haven't shifted or moved much. That's the data over the last 12 months. If you have purchased in the right locations, property is more expensive today than it was 12 months ago. That means you have to borrow more money for the exact same asset and you have to pay that additional debt of over 30 years. The further you continue to sit on the fence and wait for the perfect day, the more you're going to have to pay and the more you're going to have to borrow for the same asset. Not to mention you're missing out on that capital growth that you can get to leverage into another asset sooner. I hope this episode has been valuable today. It gives you a really good indication of what has taken place over the next 12 months. If you want to see what our predictions are for the next 12 months, let us know and we can do an episode on that and where we see property prices going for these individual locations. I hope you've enjoyed this episode and we'll see you on the next one.