5 Key Trends Shaping the Real Estate Market in 2025

The Australian real estate market is moving into a new phase — steady, selective growth rather than boom or bust. Here are five trends driving it:

1. Stabilisation and Moderate Growth

After years of volatility, prices are expected to level out. Modest national growth (~3–4%) is forecast as high borrowing costs keep demand in check. Supply shortages, however, are preventing any major downturns.

2. Strong Demand Meets Limited Supply

Migration, population growth and tight rental markets continue to strain housing supply. Construction delays and high build costs are limiting new stock, pushing buyers and renters into established homes and regional areas.

3. Affordability Shifts Buyers to New Markets

With prices and interest rates still high, buyers are seeking better value in outer suburbs and regional centres. Lifestyle flexibility and remote work trends are accelerating this shift.

4. Technology, Sustainability and New Ownership Models

Smart homes, energy efficiency and “build-to-rent” developments are on the rise. PropTech tools are streamlining how Australians buy, sell and manage property — with ESG credentials increasingly influencing value.

5. Commercial Market Reset

Office spaces are being redefined for hybrid work, while neighbourhood retail and mixed-use developments are attracting investors. Expect continued repositioning of older commercial stock.