Six Key Property Investment Trends for 2025

As we move into 2025, Australia’s property market continues to evolve, offering both opportunities and challenges for investors. Here are six key trends shaping the market:

1. Refinancing Remains Strong

Refinancing is expected to be a major driver in the valuation industry, allowing investors to:

• Lower interest rates and reduce repayments.

• Access equity for renovations or new investments.

• Extend loan terms for better cash flow management.

With fixed-rate loans from the pandemic expiring, many homeowners will seek refinancing to secure lower rates.

2. Perth’s Property Market Gains Momentum

Perth’s strong economy, mining sector, and population growth are driving high transaction volumes. Median house prices are projected to rise 6-8% in 2025, with high-growth suburbs including Bassendean, Bayswater, and Mount Lawley.

Investors should consider:

• Suburb selection – Areas near jobs, transport, and amenities.

• Rental yields – Ensuring strong rental returns.

• Capital growth – Long-term value potential.

3. House Prices Set for Steady Growth

Australia’s housing market is expected to grow 4-6% in 2025, with forecasts from major banks ranging from 3-6%.

Factors driving this include:

• Population growth.

• Increasing first-home buyer and investor demand.

• Market confidence due to potential interest rate cuts.

4. Sydney’s Best Suburbs for Investors: Randwick & Coogee

Sydney’s growing population (expected to hit 9 million by 2033) is increasing housing demand. Randwick and Coogee stand out due to:

• High rental demand – Popular with students, professionals, and families.

• Strong capital growth – Historically steady appreciation.

• Lifestyle appeal – Proximity to beaches and green spaces.

5. More First-Home Buyers Entering the Market

Despite economic challenges, first-home buyer activity is rising.

Key drivers:

• Government incentives.

• Increased property listings.

• Stable job market.

• Possible interest rate cuts.

This increased demand may push property prices higher, benefiting investors.

6. The Rise of Sustainable Housing

Sustainability is becoming a priority for buyers, with features like solar panels, energy-efficient appliances, and improved insulation adding value. Studies show energy-efficient homes are valued 5-10% higher.

Banks are supporting green initiatives with eco-friendly mortgage options, and stricter building regulations are shaping future developments.

Looking Ahead

The 2025 property market presents diverse opportunities. By staying informed and working with experts, investors can navigate trends effectively and achieve strong returns.