Navigating a complex and fragmented national residential market

The residential property market is a fascinating beast at present, marked by diverse performances across the various capital cities and regional areas. The national median dwelling price sits at around $825,000, with capital cities averaging circa $905,000 and regional areas around $673,000.

Recent trends indicate a market that is navigating a complex interplay of factors including dynamic population movements, persistently aggressive taxation regimes, significant variances between the demand and supply balance, instability in international financial markets and the consistent water cooler discussions about interest rates, but affordability remains a central pillar of the discussion.

Rate Cuts Offer Relief—But Supply Issues Persist

Interest rate cuts in February and May 2025 by the Reserve Bank of Australia provided some initial positive sentiment to less buoyant markets, with further reductions likely required to really invigorate demand. However, the reductions added more fuel to the fire in the many markets that remain in the grip of a persistent housing supply crisis.

City-by-City Snapshot: Recovery, Growth, and Contrast

The Sydney and Melbourne markets are on the mend and likely to be the larger beneficiaries of ongoing interest rate reductions and increased competition between lenders. However, with 71 per cent of suburbs in Melbourne recording a decline in values over the past 12 months, its market needs plenty of positive stimulus.

Values in Brisbane and Adelaide are reported as being five per cent up over the past 12 months, and only Perth is in the double digits, but only just. Quarterly activity is showing a different story though, with Darwin up 3.4 per cent over the quarter, far exceeding any other capital city market.

Investor Activity Shifts Across the Country

Investor lending remains at or above the 10-year average in all states except Victoria and Tasmania, with the Northern Territory far exceeding its 10-year average. Reports on the ground indicate that buyer’s agents have moved their attention from Western Australia and are very active in the Northern Territory. Given the forecast shortfall in housing supply against targets, the Northern Territory market is one to watch keenly in 2025.

What $750,000 Buys You Around Australia

In this month’s report, our specialists investigate what a budget of $750,000 can achieve in the various markets around Australia. Our team of valuers across the nation has again scoured their specific locations of expertise to find the examples that paint the picture that mere statistics cannot.

While a budget of $750,000 may be challenging to secure a house anywhere close to the CBD in Sydney or Melbourne, it can open doors to houses or well-located units in other major cities — and the variety of offerings around regional Australia is naturally diverse and extensive.

Our team’s submissions provide real-life examples of how far a budget of $750,000 extends, with valuable examples of where different products in similar markets might provide better value for money comparatively, all through the lens of an independent and unbiased property valuer.