Australian agribusinesses are well-positioned for 2025 despite anticipated rising geopolitical tensions, a sluggish Asian economy leading to low consumer confidence, and a volatile energy market. According to Rabobank’s January 2025 Food and Agribusiness report, these factors are expected to create a dynamic and challenging year.

Travis Wentriro, Regional & Rural Network Manager at Raine & Horne Group, commented that the Rabobank report provides key insights for the agricultural industry, noting, “These factors can significantly influence the buying and selling of agricultural holdings in 2025.”

Livestock product prices are predicted to perform well in 2025, with grain prices also showing upside potential, according to the rising RaboResearch Australia Commodity Price Index forecast. However, soil moisture levels are lower than last year, with most cropping and dairy regions along Australia’s southern coastline too dry. Recent rains in sheep and cattle areas have improved feed availability. The rain forecast for the next three months suggests similar conditions, but this may be mitigated if rainfall arrives during the growing season.

Farm input costs, such as fertilisers and plant protection chemicals, might remain stable but hold upside price risk, while crude oil prices might come off their recent five-month high.

Rabobank successfully predicted that the RBA would cut interest rates in February. “We expect the RBA to make three small 0.25 basis point reductions in 2025, as global geopolitical headwinds might keep inflation and interest rates higher for longer. The global economic outlook for 2025 is subdued in many regions of the world, with Australia’s GDP growth recovery to 2.3% in 2025 being almost an exception,” noted Rabobank.

Major economies, including the US (2.0% growth versus 2.7% in 2024) and China (4.7% versus 4.8%), are expected to struggle, dampening consumer confidence. The Australian dollar is forecast to stay weak near US0.60, benefiting Australian exports but raising import costs. Australia’s tight labour market may soften.

Australia’s major agricultural sectors are poised for a strong year. The recently harvested grain crop surpassed last year’s, though soil moisture levels in South Australia, southern WA, and western Victoria need monitoring for planting. Beef and sheep producers have a positive outlook for farm-grown feed in early 2025. Commodity prices are expected to remain stable, avoiding the extreme highs and lows seen in recent years.

Geopolitical issues and some shipping routes impacted by piracy also remain areas of concern. Moreover, Rabobank noted that Donald Trump’s return to the US presidency and the potential for US import duties on Australian beef, a key export, will create some uncertainties.

Likewise, the Middle East conflict and Red Sea piracy will impact shipping routes and drive volatility in 2025. Russia’s actions in Ukraine could also disrupt grain exports, further impacting global grain markets.

Globally, farm input prices for fertilisers and plant protection products are forecast to remain stable or increase slightly. Global urea and phosphate prices have moved upward from their Q2 2024 lows in Australian dollar terms. As Australia imports most fertilisers, the weaker Australian dollar has been a key driver in this increase.

Looking ahead to 2025, Rabobank doesn’t expect very significant price swings but sees more upside than downside price risk. Costs on Australian farms are expected to remain well above pre-pandemic levels.

Travis Wentriro added, “While geopolitical and economic uncertainties may create volatility, the strength of Australia’s major agricultural sectors and the positive outlook for livestock and grain prices should support rural property values.

“A steady demand for high-performing agricultural holdings is likely, particularly in regions with strong rainfall and feed availability. However, areas facing ongoing dry conditions may see more cautious buyer sentiment.”

If you’re considering buying or selling rural property in 2025, contact your local Raine & Horne Rural office for expert advice and more information.

What will rate cuts mean for homeowners and buyers?

Last month, we noted that property prices were cooling in some markets across Australia. However, investors who are waiting for prices to fall further might be disappointed. CoreLogic suggests that any downturn in values "is likely to be shallow and short-lived."

This is especially true given that interest rates are expected to fall as early as this month, potentially reigniting housing demand. The result could be a narrow window of opportunity for investors to buy now before rate cuts bring more competition to the market.

That said, it appears the genie is already out of the bottle, with new investor loan values reaching $11.6 billion in the September quarter, a 29.5% increase compared to September 2023, according to the Australian Bureau of Statistics (ABS). According to a statement from the ABS, “Over the past 18 months, the average size of loans approved increased for both owner-occupiers and investors. However, the growth in investor loans was also driven by increases in the number of loans being approved.

“Investor activity remains at high levels in response to the recent growth in house prices and rental yields.”

On the finance side, the implications of a rate cut are significant for landlords and prospective investors. Craig Betalli, Senior Finance Specialist from Our Broker, explains that for landlords the gap between interest costs and rental returns is expected to narrow. In other words, if your investment property is costing you $1,000 a month, it will likely cost you less after the rate cut.

While this scenario is great news for landlords, it also improves the borrowing capacity for aspiring investors, making property purchases more accessible.

A rate cut will also ease pressure on residential borrowings, further boosting the borrowing capacity of prospective investors. This situation may prompt some homeowners to consider starting or expanding their real estate portfolios by purchasing investment properties.

If you're thinking about purchasing an investment property before autumn, get in touch with your local Raine & Horne office. For financing, Our Broker is here to help – call 1800 913 677.

As e-bikes and other e-mobility devices grow in popularity, especially among apartment dwellers in our city suburbs and regional towns, safety concerns, particularly fires caused by lithium-ion batteries, have risen.

Between 2017 and 2022, sales ballooned from 9,000 to more than 100,000 each year to make e-bikes the most popular electric vehicle in the country[i]. 

That said, recent incidents have highlighted the fire risk, with the NSW EPA reporting 193 battery-related fires in New South Wales between January and August 2024 – an 18% increase from the previous year[ii].

Of course, e-bikes and e-scooters are not responsible for all fires, with the majority traced back to small devices containing embedded batteries. An embedded battery is a small battery that is placed permanently within a device. They are often buried deep within the device, and they have no easy way of being removed. These devices can include wireless household products, light-up toys and even disposable vapes!

That said, pressure is mounting on strata committees across Australia to address concerns and mitigate risks associated with e-bikes. 

The facts are that the e-bike lifestyle is particularly attractive for tenants living in medium- to high-density areas – and who are keen to reduce their environmental impact.

Moreover, while e-bikes are often viewed as a cost-effective, space-efficient alternative to cars for getting around our suburbs and towns, they can be more difficult to store than a standard bike.

As such, landlords increasingly report damage, such as chipped door frames, smudges on walls from handlebars, and scratched front doors. These repairs are typically the responsibility of tenants.

So, tenants need to inform their property managers if they own an e-bike or similar device. Property managers will relay this information to your landlord to ensure they know the potential risks.

It’s also recommended that landlords consult their insurance companies to determine if their policy covers a fire caused by an e-bike.

To learn more about issues relating to storing an e-bike in your rental home, talk to your local Raine & Horne Property Manager. 

[i] https://bicyclenetwork.com.au/our-advocacy/e-bikes/

[ii] https://www.epa.nsw.gov.au/news/media-releases/2024/epamedia241107-central-west-residents-urged-to-dispose-of-batteries-safely-following-landfill-fires#:~:text=In%202023%2C%20the%20number%20of,traced%20back%20to%20small%20devices.

If purchasing a rental property is on your New Year bucket list, chances are you’re wondering how the market will shape up in 2025. Let’s take a look.

Investors were a driving force in 2024

Last year saw lending to property investors jump 29.5%[1] - and these investors were handsomely rewarded.

By the end of 2024 home values had jumped 14.3% after almost two years of consecutive monthly price growth[2].

Rental yields pushed total returns even higher last year. Across our state/territory capitals, investors pocketed total returns of 8.3% in 2024, a figure that climbed to 10.6% across regional markets[3]. 

Factors that will shape the market in 2025

Looking ahead, 2025 sees many of the same drivers for property price growth that were in place last year:

• A serious shortage of housing nationally
• A tight rental market with a vacancy rate of 1.4% nationally[4], and
• Sluggish new home construction, with building approvals falling 3.6% in November[5]. 

These factors point to an ongoing trend of steadily rising values over time.

A window of opportunity for investors

By late 2024, property prices were cooling in some markets. However, investors who hold out hoping for property prices to fall further could be left disappointed. CoreLogic advises that any downturn in values “is likely to be shallow and short lived”[6].

This is especially the case because interest rates are expected to fall this year, and this could reignite housing demand.

The upshot is that investors may have a narrow window of opportunity to buy today before rate cuts fuel increases in borrowing power, bringing more competition from other buyers to the market. 

Long term gains remain impressive

It’s worth bearing in mind that property tends to deliver its best gains over the long term. As the table below shows, every capital city has recorded significant price growth since the start of the pandemic in 2020.  

Increase in property values since onset of COVID
Sydney 27.7%
Melbourne 8.4%
Brisbane 67.7%
Adelaide 72.1%
Perth 77.0%
Hobart 26.7%
Darwin 24.8%
Canberra 30.3%

Source: CoreLogic[7]
 

It’s clear evidence that time in the market is a more reliable way to make impressive gains on property than delaying a purchase in a bid to save a few thousand dollars on the price of a dwelling. 

Three factors to look for

When you’re ready to invest, it’s worth looking for locations that meet three important criteria:

Proximity to major infrastructure projects, such as new transport links, that often drive local values higher.
Nearby gentrification or new developments that help to attract tenants and home buyers alike. 
Population growth that creates rising demand among tenants and owner occupiers.
The important thing is to talk to your local Raine & Horne property expert, who can explain price trends in the area and identity investment properties that match your goals and budget.  

 
[1] https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release#housing-finance-detailed-
[2] https://www.corelogic.com.au/news-research/news/2025/australias-housing-market-has-just-entered-a-downturn-whats-behind-the-shift
[3] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025.pdf
[4] https://sqmresearch.com.au/uploads/12_12_24_National_vacancy_rates_November_2024.pdf
[5] https://www.abs.gov.au/media-centre/media-releases/dwelling-approvals-fall-november
[6] https://www.corelogic.com.au/news-research/news/2025/australias-housing-market-has-just-entered-a-downturn-whats-behind-the-shift
[7] https://www.corelogic.com.au/__data/assets/pdf_file/0022/25456/CoreLogic-HVI-Jan-2025.pdf

This is an important question, particularly for those renting for the first time in 2025, such as university students. 

The short answer is no, you’re not covered by the landlord’s insurance. Landlord insurance only covers the landlord and the property, not the tenant’s belongings.

To protect yourself, you’ll need “renters’ insurance”, a type of home contents insurance like what your parents use to cover the contents of their home. It ensures your possessions are protected against unexpected losses.

Renters’ insurance can cover the cost of repairing or replacing your furniture, appliances, clothing and personal items if they are damaged by an insured event such as a flood, fire, lightning, theft, the escape of a liquid (e.g. from a burst pipe) and a fallen tree. It may also cover malicious damage, vandalism, and repairs caused by a riot, an explosion and even an earthquake or tsunami. Many insurers offer renters insurance, such as BudgetDirect, NRMA, AMMI and plenty more. 

If you're a current tenant, the end of the year is an ideal time to review your renter’s insurance and explore options to ensure you have the best coverage at the most competitive price.

As the year draws to a close, the holiday season is also a perfect time to review your household expenses and look for ways to save. Consider trimming costs on essentials such as electricity, gas, phone, internet, and even cable TV subscriptions to give yourself a financial boost heading into the new year.

At Raine & Horne, we’ve partnered with DirectConnect to make cost-cutting and shopping around easier. DirectConnect can take the hassle out of shopping around for better deals on your utilities. Visit their website at www.directconnect.com.au and start saving today!

For advice and assistance, don’t hesitate to reach out to your Raine & Horne Property Manager. They’re here to help, whether it’s about renters’ insurance or finding ways to save on your utilities. Contact your local Raine & Horne office today to learn more. 

As we head into 2025, after an impressive run of rental growth and low vacancy rates, we’re now shifting toward a more balanced rental market. 

This state of affairs means that landlords can still make decent returns, but tenants can choose from a slighter larger pool of rental properties. With more choice for tenants, landlords must proactively keep their investment properties in demand.

The key to securing long-term returns is ensuring your tenants are happy and comfortable. A satisfied tenant is less likely to move, but with more choices available, staying on top of any maintenance issues is crucial. 

Regular property inspections with your Raine & Horne Property Manager are essential to spot potential problems early—whether it’s a faulty door lock or a leaking tap.

Then, after the visit, if you and your Raine & Horne Property Manager identify any repairs or outstanding maintenance issues, be sure to address them immediately. 

At Raine & Horne, we prioritise ongoing training for our Property Managers to ensure they remain responsive, respectful, and attentive to tenants’ needs. 

Building a positive relationship between your Property Manager and tenant is essential for a smooth, long-term rental experience.

If a lease renewal is around the corner, it’s time to get savvy about the rental market where your property is located. Knowing the local market will help when it’s time to negotiate that next lease.

During negotiations, be open to the tenant’s request for a specific lease term. If you have a long-term tenant, they may favour a longer lease for security. This option might also suit you as it could provide you with a more stable income stream. On the other hand, if the tenant is planning to buy in the next six months, they might request a shorter lease. In the current rental market cycle, the best advice is to be flexible when negotiating lease terms. 

Also, if there is some wriggle room in your budget, some enhancements could encourage your tenant to stay longer. Maybe it’s a new air conditioner, a dishwasher, a fresh coat of paint, or new flooring. These small gestures show that you value your tenant’s comfort and well-being, which should be a priority.

Wishing you a successful and hassle-free year as a rental property investor, with well-maintained properties and happy tenants all year long!

Would you like to know more about buying an investment property in 2025? Speak with your local Raine & Horne team for expert insights.