Australia’s property market in 2025: A smarter path to ownership and investment

Industry experts point to falling rates, new supply, and smarter due diligence as key to unlocking long-term value for Aussie buyers

Australia’s property market is seeing steady growth and notable shifts in both affordability and investment opportunities. With interest rates expected to ease and housing demand outpacing supply, especially in cities like Brisbane, Adelaide, and Perth, buyers and investors alike are positioning themselves to capitalise on the evolving landscape.  

But experts say that the real risks may lie beyond the initial purchase—particularly in strata ownership, where hidden costs and building defects can quickly turn a “good deal” into a financial burden.  

“Affordability discussions often focus on entry costs: purchase price, interest rates, and financing. But the real financial risks lie in what happens after you own the property,” says Amelia (Dan) Tian, Director of W T Newey & Co. and a member of the PropertyGuru Asia Property Awards (Australia) judging panel.  

Tian brings a unique perspective as the only judge focused on the post-purchase stage, what she calls the “hidden layer” of affordability.  

More than just price: Understanding strata ownership risks 

While many buyers are drawn to the perceived accessibility of new apartments, Tian warns that strata living comes with overlooked risks, particularly in poorly managed or defect-prone buildings.  

“Imagine this: you buy a brand-new apartment, thinking you have secured a great investment or a dream home. But soon after moving in, you discover water leaks, mould spreading throughout your property, or even worse, structural cracks that make the building unsafe, just like a couple of real cases that occurred in Sydney,” she explains.  

These real-life scenarios can lead to unliveable conditions, plummeting resale value, and skyrocketing special levies.  

“Even if you did not cause the issue, you are financially responsible for fixing it… Unlike mortgage repayments, you cannot negotiate your way out of strata levies—they must be paid,” Tian adds.  

She urges 2025 buyers and investors to go beyond the unit itself and invest time in due diligence, reviewing strata records, sinking fund health, and developer reputations before committing.  

Market momentum: More supply, strong demand, and strategic opportunity 

While post-purchase risks are real, the broader market outlook remains strong, particularly in lower-density and regional markets. According to Karen Kong, Head of Property Lending at Bendigo Bank and a fellow PropertyGuru Asia Property Awards (Australia) judge, a surge in listings—especially in the AUD5 to AUD15 million bracket—is offering more choice for buyers.  

“It has been an interesting start to the Australian property market this year. Initially slow, the market is now witnessing a notable surge in supply,” Kong says.  

According to realestate.com.au, some Sydney suburbs are now cheaper to buy than rent, prompting more renters to consider homeownership. At the same time, API Magazine reports that undersupply remains a long-term concern, pushing up prices in high-growth areas.  

“Overall, property prices are expected to continue growing given a persistent undersupply of housing, particularly in cities like Brisbane, Adelaide, and Perth, where demand is outpacing supply,” Kong explains.  

With interest rates expected to fall further, borrowing may become more accessible in 2025, though affordability will remain a challenge, driving some buyers toward apartments and townhouses.  

For investors, Kong suggests focusing on locations with strong population growth and infrastructure development.  

“Careful market research and strategic planning will be key to making the most of the current conditions,” she advises.  

Australia’s best developers recognised on the global stage 

Amid the evolving market, Australia’s top property developers are earning global recognition. At the 19th PropertyGuru Asia Property Awards Grand Final 2024, several Aussie firms competed against 15 other markets across Asia and the Middle East—and won big.  

• Best Mixed Use Development (Asia): Burswood Point by Golden Sedayu 
• Best Investment Condo Development (Asia): Elements at Carousel by Jean Yip Developments 
• Best Luxury Townhouse Development (Asia): Mercer by BHC Property 
• Best Townhouse Development (Asia): Chatswood Garden by FY Property, Kooringa Group, MA Financial, CPDM 
• Best Integrated Work From Home Development (Asia): BLVD by OSK Property 
• Best Wellness Residential Development (Asia): BLVD by OSK Property 
• Best Condo Interior Design (Asia): BLVD by OSK Property  

These awards not only celebrate design and quality, but also reflect broader market trends: integrated work-from-home functionality, wellness-focused living, and flexible, investor-friendly developments are leading the way.  

Prestige property market holds steady 

On the luxury end, the CBRE data reported by The Real Estate Conversation shows that Australia’s prestige residential market remains resilient, with strong buyer interest in high-value homes. In particular, the Melbourne and Sydney prestige segments continue to attract both domestic and offshore interest.  

However, experts caution that even high-end buyers should conduct careful research—especially when it comes to strata buildings, where shared ownership can come with hidden costs.  

As Tian puts it: “A slightly older, proven building with a stable strata record may be a safer investment than a brand-new one with unknown risks.”  

Looking ahead: Smarter buyers, safer bets 

So what does all this mean for buyers and investors in 2025?  

For Tian, the message is clear:  

• Prioritise due diligence, including reviewing strata records, developer histories, and maintenance plans.  
• Look for well-managed buildings with healthy finances and transparent governance.  
• Consider insurance and legal protections—but do not rely solely on government rectification schemes.  
• And finally, think beyond capital growth: look for stability, liveability, and resilience. 

“In the end, affordability is not just about getting in—it is about staying in without unexpected financial strain,” she says.  

As the Aussie property landscape evolves, savvy, informed decision-making will be the real competitive edge—not just finding a bargain, but finding a property built to last.  

Know any award-worthy residential, commercial, or industrial projects in the country? Nominate them for the 8th annual PropertyGuru Asia Property Awards (Australia) on or before 18 July 2025. To know more, visit AsiaPropertyAwards.com/Award/Australia/

Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].