Property Prices Set to Surge—Here’s How to Stay Ahead

Increasing Costs and Movements of the Market

Based on the PropTrack Home Price Index for February 2025, Australian property prices have increased in value by 6.6% over the last year, showcasing consistent growth regardless of prior market slowdowns. Given the expectation of further interest rate cuts, the market is expected to continue expanding. This is especially the case in major metropolitan areas such as Sydney, Melbourne, and Brisbane where the demand from buyers is high and the supply is low.

However, experts are stating that while there is expected respite for borrowers, it is unlikely to significantly ease the financial burden on a lot of Australians. Rather, lower interest rates are more likely to stoke demand inflation, increasing the chances of excluding first-home buyers or investors waiting for the so-called perfect time to enter the market.

Rising Prices and Market Shifts

Current data from the PropTrack Home Price Index in February 2025 shows that Australian property prices have increased by 6.6% during the last year, indicating consistent growth even after the previous stagnation in the market. With more interest rate cuts anticipated, the market looks set for further growth. This is especially true for the major metropolitan areas like Sydney, Melbourne, Brisbane, etc., where demand from buyers is very high while supply is low.

Nonetheless, experts are cautioning that while borrowers are seeing some help, the impact on the finances of the hundreds of millions of Australians is unlikely to be significant. Instead, lower price relief seems more likely to escalate demand which in turn would increase prices and exclude first-home buyers or even those waiting for the perfect moment to invest.

Key Drivers Behind the Surge

Predicted Rate Cuts: A few economists predict cuts in the coming months which will lower the rates and increase borrowing which in turn will result in increased spending.

Limited Housing Supply: The ongoing low stock levels continue to put strain on pricing, especially within sought-after metropolitan areas.

Investor Interest: Investors looking for high-yield properties and long-term capital gains are returning to the market with record-low rental vacancies.

Graphical Data: Home Price Growth and Forecast (Feb 2025)

                                                                                                                                                                                               What This Means for Buyers?

The rising market requires buyer agents and investors to respond quickly. Competition is growing, and properties in regions with high potential are selling quickly. These clients need to upgrade, downsize, or enter the market—strategic timing combined with excellent financial counsel will be crucial. As in any market, the first home buyers’ window of opportunity is becoming harder to capitalize on as it is becoming pricier. Waiting too long may mean losing present opportunities, which is further compounded by future waves of inflation. Currently, however, it is ideal for investors looking to buy new properties in metropolitan areas like Perth and Brisbane that offer high rental returns and are seeing growth of over  10%

The year 2025 is quite intense when it comes to the Australian property market. The need for strategic forecasting and informed decision-making to remain a step forward is in high demand with an increase in property prices and even anticipated interest rate cuts. are crucial in assisting with the property-buying process procedure. It helps clients buy a property and opt for strategic investments for greater value in the long term.

With OM Financial’s premium mortgage services, you can stay ahead of the curve. We assist you in overcoming the challenges of rising property prices with bespoke advice so that you get the best rates and opportunities. For professional assistance with your next home loan or investment strategy, please book an appointment or contact us at 478 876 967  to get started