Australia’s housing prices are set to slow their growth in 2025, according to REA Group and PropTrack’s Property Market Outlook report.
Housing prices are projected to rise by 1-4% nationally next year, after a 5.5% increase in 2024.
“The housing market in 2024 has been characterised by unexpected strength, marked by rising property prices and a growing willingness among vendors to list their properties for sale,” according to the REA report.
“With more properties available for sale, prospective buyers have been afforded more choice, leading to an increase in time on market.”
Adelaide, Darwin, Hobart, and Canberra saw higher price growth in 2024 than in 2023, while total listing numbers were higher in all capital cities except Adelaide and Darwin.
Sydney and Melbourne posted both the largest increases in housing supply among capital cities and increases in sales.
Housing demand in 2024 was 5.4% lower nationally than in 2023, as buyers mull over entrance into the property market.
“More stock arriving on market has afforded would-be purchasers greater choice and more time to make a purchase decision.”
Buyers have also preferred existing properties rather than new housing construction due to building costs, according to the report.
Perth and Adelaide are expected to see the highest price growth in 2025, with increases in these cities forecast between 3% and 6%.
Melbourne is expected to have the lowest, with prices projected to change by between -1% and 2%.