Top 5 headlines from this week’s Australian real estate news

1. Market confidence swiftly rising: 65% of real estate agents predict strong property price growth this year, with Melbourne emerging as a key investment hotspot.
2. Auction market gains momentum: Auction volumes rose 13% last week, with a 67.4% clearance rate—the highest since Oct 2024, signalling renewed buyer confidence ahead of potential interest rate cuts.
3. Property rewards long-term investors: House prices doubled in 29 towns, with 50 more growing 70%-90% in five years, with regional markets leading the charge.
4. Infrastructure key to supply: HIA calls for a $12B infrastructure boost to unlock land supply and accelerate new home construction to address a 60,000-home shortfall.
5. More listings, more choice: Property listings are up 10.3% year-on-year, with 243,642 homes now on the market. Brisbane, Perth, and Sydney led the way in January.

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Market confidence swiftly rising

Industry professionals are increasingly confident about property price growth in 2025.

CoreLogic’s 2025 Outlook shows that 65% of real estate agents expect prices to rise this year, up from 57% in early 2024.

CoreLogic’s Head of Australian Research, Eliza Owen, says experts believe Melbourne will perform better this year.

“Melbourne has established an affordability advantage and could experience improved capital growth performance in 2025, driven by lower interest rates, higher real incomes, and better affordability,” she says.

The Q4 2024 APIM Property Sentiment report also highlights growing interest in the Victorian market.

Victoria was the second most popular state for buyers last year, behind only Queensland.

It also ranked second for property investment prospects over the next 12 months.

Of those surveyed, 34% picked Queensland as the top investment destination for 2025, followed by Victoria (20%), Western Australia (18%), and New South Wales (13%).

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Auction market gains momentum

Auction activity is ramping up, with a 13% rise in properties going under the hammer last week.

CoreLogic data shows a 67.4% clearance rate across the capital cities—the highest since October 2024.

Of the 1,712 auctions held, Sydney led with a 73% clearance rate, followed by Melbourne at 68.4%.

The rankings have shifted from late 2024 when smaller capitals, led by Adelaide, dominated auction results.

Canberra recorded a 64.1% clearance rate last week, while Adelaide reached 63.3% and Brisbane 50.7%.

CoreLogic Executive Research Director, Tim Lawless, says auction volumes are expected to rise further, with activity historically peaking the week before the Easter long weekend.

He notes that early trends suggest improving selling conditions, with renewed buyer confidence driven by expectations of an interest rate cut.

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Property rewards long-term investors

New figures confirm property is a long-term investment, with house prices doubling in 29 townships over the past five years.

Propertyology analysis shows another 50 suburbs and towns recorded price growth between 70% and 90% in the same period.

Propertyology Managing Director, Simon Pressley, says the past five years have seen some of the strongest national property market performances in history.

He notes that regional areas have led the way, with 11 inland towns ranking among the top 35 for price growth.

Pressley attributes this to affordability and strong job markets, particularly in agribusiness and resources.

“The single biggest important component for property market performance is always local economic conditions,” he says.

Top-performing markets in Queensland include Gatton, Kingaroy, Bundaberg, Somerset, Rockhampton and the Western Downs.

In Western Australia, the leaders are Port Hedland, Mandurah, Busselton and Geraldton, while in South Australia, Murray Bridge, Mount Gambier and Port Pirie also saw strong gains.

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Infrastructure key to supply

Investing in infrastructure is critical to addressing Australia’s housing supply issues, according to the Housing Industry Association (HIA).

HIA urges the Federal Budget to allocate $12 billion for roads, water, and utilities, arguing this will unlock more land for development and ease housing shortages.

HIA Managing Director, Jocelyn Martin, says a lack of infrastructure is the biggest barrier to new housing.

“Right now, the single biggest obstacle to housing supply is the lack of shovel-ready land,” she says.

“Without essential infrastructure in place, land cannot be developed, and homes cannot be built.”

She warns that without this investment, Australia will fall further behind on its housing targets, making affordability worse.

Australia needs to build 240,000 homes annually to meet demand, but last year fell short by 60,000.

Martin says if developers bear the cost of infrastructure, home buyers will ultimately pay the price.

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More listings, more choice

More properties hit the market in January, giving buyers greater choice.

SQM Research reports a 4.5% increase in national listings for the month, marking a 10.3% rise compared to last year.

There are now 243,642 properties listed for sale. Brisbane saw the biggest jump in listings (9.8%), followed by Perth (7.9%) and Sydney (7.3%).

Hobart and Adelaide each recorded a 6.8% increase, while Canberra rose 3.3% and Melbourne 2.1%.

Darwin was the only capital city where listings fell, dropping 1.3%.

SQM Research Managing Director, Louis Christopher, says 2025 has started strong for property listings.

“If an interest rate cut does occur, we believe this will lift confidence in buyer demand, with housing prices expected to rise between 6% and 10% for the year,” he says.

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Catching up on Australian real estate news?

Read our last Australian real estate news article covering:

1. Banks lower fixed rates: Major banks, including Macquarie and NAB, have begun reducing fixed mortgage rates, signalling confidence in a potential RBA rate cut as early as February.
2. Regional markets outperform cities: Regional property prices are rising faster than capital cities, with Adelaide and Darwin leading, as regional house prices grew by 0.4% while capital cities declined by 0.2%.
3. Infrastructure drives property growth: Billions in infrastructure spending are fueling property demand, with hotspots in Darwin, Brisbane, Adelaide, and regional areas.
4. Apartments outperforming house prices: Rising house prices and affordability issues are driving more buyers toward units, with faster price growth expected through 2026.
5. Rental growth slows down: Rental price increases are easing, but median rents remain at record highs, with Build-to-Rent projects set to boost supply.

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