Reflecting on 2025: A Year of Growth, Resilience and Gratitude

As 2025 draws to a close, the Australian residential property market continues to demonstrate both resilience and strength.

National dwelling values are set to finish 2025 at least eight per cent higher than where they started. The market has now recorded 11 consecutive quarters of growth, with at least one major analyst reporting five of our seven capital cities now have a median house price exceeding $1 million.

The Reserve Bank’s 75 basis point reduction in the cash rate – from 4.35 per cent to 3.60 per cent – provided immediate stimulus, with price acceleration across most markets following the February cut. However, this stimulus created an interesting paradox: while borrowing costs fell, price growth absorbed much of these savings, leaving affordability broadly unchanged or in some cases worse.

Undersupply of dwellings has emerged as arguably the most powerful price accelerant. With dwelling approvals at decade lows, the nation faces a substantial shortfall in homes relative to the government’s 2030 target. This scarcity has driven fierce competition for available stock, particularly in lower price sectors.

Government assistance has also played a role, particularly the 1 October expansion of the First Home Buyer Guarantee Scheme. The take-up has been substantial, with one in ten homes purchased using the scheme in October. While undoubtedly helpful for first-home buyers, it has also fuelled demand in an already supply-constrained market, with values accelerating at these affordable price points as the year has closed out.

In this, our final Month in Review for 2025, our residential teams reflect on the year across each of their specific markets. From coast to coast, we examine prices, performance and activity, and the lessons to be learned.

Our commercial valuers provide a retrospective of the Office property sector in 2025, examining significant transactions, property value movements, and the investment and rental drivers that have shaped this space.

Finally, our rural experts assess 2025 across various primary production industries. Their submissions demonstrate the diversity of the rural sector and the way property markets in that space respond to different drivers and conditions.

Our business has had a significant 12 months as well. Now, in our 56th year and a long way from when Kerron Herron started our company from beneath his Rockhampton home, we have experienced what can genuinely be described as a watershed year for Herron Todd White. Throughout 2025, we have continued to expand our footprint, strengthen our capabilities, and evolve how we operate as a national business.

We have had a remarkable year, made possible by the dedication, expertise and commitment of our people, and the trusted partnerships we continue to build across the industry. At the same time, the ongoing support and confidence of our clients have been fundamental to our success, and we are deeply grateful for the relationships that underpin everything we do.

I want to thank everyone who has helped make 2025 a success: our customers, contractors, staff, and all who engaged with us this year. We wish you a wonderful holiday period and look forward to assisting with your property advisory needs in 2026.

Gary Brinkworth
CEO