With national dwelling values holding steady in January, Raine & Horne Executive Chairman Raine & Horne is offering an optimistic outlook for the Australian real estate market in 2025.

While home values in Sydney, Melbourne and Canberra softened slightly in January, Brisbane (10.4%) and Perth (17.1%) have continued to record strong annual growth in home values according to the latest research from CoreLogic. Adelaide is also humming along at 12.7%.

“There is plenty of reasons why Australian real estate will prosper in 2025, and the talk of interest rates set to fall is clearly having an effect,” said Angus. Raine & Horne data for January shows appraisal values were up almost 25%, with listing values increasing by 12.85%, while groups at open for inspections holds strong.

Angus added, “We know that appraisals in summer translate to sales in autumn, and the high values of appraisals we saw in January points to a very robust property market as we head into late summer/autumn 2025.”

Moreover, the long-awaited cuts to interest rates will improve home buyers’ borrowing power, which, Angus said, looks set to reignite housing demand.

“Better still, we could be looking at multiple rate cuts, with the first one expected by most market pundits this month.” For example, NAB expects three rate cuts in 2025. Westpac says there is a possibility we could see rates start to fall in autumn.

“Scarcity, combined with sustained buyer demand, is likely to support property growth similar to 2024 into 2025, with growth of 4% to 6% now in prospect.

“A series of rate cuts starting this month will be the magic catalyst for buyers, finally putting the interest rate genie back in its bottle and sparking them back into property buying mode. Rate cuts in February or early April could also set the stage for a strong autumn selling season.”

That said, Angus cautioned that trying to time the market could result in missing out on great opportunities. “The best time to buy is when you can afford to, and your finances are in place,” he said.

Angus also highlighted the potential impact of the upcoming Federal Election. “For whatever reason, elections tend to slow down even the strongest real estate markets, so we hope the federal poll happens sooner rather than later. A prolonged decision-making process with a hung parliament situation in play could hinder residential real estate as well as business prospects.

“We hope the poll is clear cut, and we can all get on with our real estate, business and investment goals for 2025.”

Whether you’re a first-time home buyer, upgrader, or keen to buy an investment property, your Raine & Horne property expert can provide valuable insights into how the local market is performing. 

Talk to us today and start kicking your 2025 property goals sooner.