Groundswell Property's Market Insights
Listings Shrink, Values Surge, Sentiment Soars: Key Insights as at 24 May 2025
Welcome to this week’s edition of Groundswell Property’s Market Insights, where we cut through the media noise and deliver real, data-driven updates on Australia’s ever-changing property market.
As we near the midpoint of 2025, we’re seeing tighter supply, growing buyer sentiment, and further confirmation that Australian real estate remains the cornerstone of national wealth.
In this week’s update, we explore:
📉 Why property listings are falling in every capital city
💰 The rapid rise of $1M+ homes, including in regional areas
🧭 Queensland’s position as the #1 pick for investors
📉 Interest rates drop again — what it means for buyers
🔍 What this means for your next move
Market Highlights
Listings Down Across All Capitals: New listings fell 3.6% nationally in April. Biggest drops: Sydney & Canberra (7%), Melbourne (4.5%).
$1M+ Homes on the Rise: Now 34.4% of homes nationally valued at $1M+, including 19.4% of regional properties.
Queensland Leads Investor Confidence: 35% of investors rate QLD as the top pick for 2025.
Rate Cut Fuels Activity: RBA drops cash rate to 3.85%. Second cut this year. Lower repayments, higher borrowing power.
Investment Confidence Surges: 78% expect price growth in 2025. 20% plan to buy an investment property this year.
As always, our goal is to provide evidence-based insights to help you make informed property decisions—whether you're buying, selling, or simply keeping a pulse on the market. Let’s dive into the data and insights shaping the year ahead.
PROPERTY LISTINGS DROP
The number of properties listed for sale has dropped in every capital city.
New analysis by SQM Research shows listings are down 3.6% in April to 242,425 properties being offered for sale.
Listings are down the most in Sydney and Canberra (7%), while Melbourne is down 4.5% and Hobart is down 3.5%.
Brisbane listings dropped 3.3% in April, Adelaide is down 3%, Perth is down 2.9% and Darwin is down 2.8%.
Despite the monthly drops, listings are higher in Sydney, Perth, Canberra and Hobart than they were at the same time last year.
SQM Research managing director, Louis Christopher, says low listings, persistently low housing supply and strong population growth are continuing to push prices up.
He says the April results are skewed by the Federal Election, Easter and Anzac Day holidays so it will be interesting to see the results next month.
“Going forward, with the election behind us and a majority government in place, I expect a large uplift in new listings for May as well as a pick-up in auction clearance rates,” he says.
$1 MILLION PROPERTIES ON RISE
Solid property price growth in recent years means a third of Australian homes are now valued at $1 million or more.
New research from Cotality shows the portion of dwellings valued at $1 million or more has risen from 9.7% in April 2015 to 34.4% as of April 2025.
This includes almost a fifth (19.4%) of homes in regional areas, up from just 0.5% a decade ago.
According to Cotality, housing values have increased 67.3% nationally in the past ten years.
As is to be expected, Sydney had the highest portion (64.4%) of homes valued more than $1 million. Brisbane was next, 40.2%, followed by Melbourne, 30.9%, Adelaide, 27.8% and Perth 26.3%.
The number of million-dollar homes in Hobart is now 11.9%, which is down from 20.3% in 2022, while Darwin had just 1.3%.
Cotality head of residential research Eliza Owen says as property values continue to rise, the chance that homeowners hit millionaire status is increasing.
INVESTMENT SENTIMENT HIGH
Queensland is overwhelmingly the top pick by property investors, with more than a third believing it has the best investment prospects in the next 12 months.
APIM’s Property Sentiment Report Q1 2025 says 35% of respondents picked Queensland as their preferred investment location, 19% selected Victoria, while 14% selected Western Australia, New South Wales and South Australia.
Only 2% of respondents thought Tasmania had the best investment prospects and 1% picked the ACT.
The report also shows growing confidence in property prices, 78% of respondents (up from 68% in the previous quarter) expect prices to rise throughout 2025.
“Only once before has our survey unearthed so few people tipping property prices to fall,” it says.
More than half (54%) of respondents feel positive about the Australian property market.
The report says loan delinquencies remain low and 20% of respondents are planning to buy an investment property in the next 12 months.
RATES DROP AGAIN
Interest rates have dropped again by 25 basis points, increasing the borrowing capacity of buyers and easing repayments for existing mortgage holders.
The Reserve Bank of Australia (RBA) met this week and dropped the official rate to 3.85%.
Many of Australia’s big banks had already started reducing the fixed rates they offered to new customers ahead of the RBA move.
It is the second cut by the RBA in 2025, following a cut in February. According to Canstar data the most recent cut could save an owner occupier with a $600,000 mortgage, $91 per month.
Canstar data insights director Sally Tindall believes the majority of lenders will pass on the full cut.
The RBA says inflation has fallen substantially since the peak in 2022, as result of the higher interest rates.
But it warns the future outlook of the economy is uncertain, particularly as a result of uncertainty around tariffs imposed by the US.
It says real household incomes have picked up and there has been an easing in some measures of financial stress.
Key Takeaways:
Australia’s property market is entering a new phase of momentum — shaped by falling rates, tight supply, and strong investor confidence.
Listings may rise in May, but current undersupply remains a key driver of price growth.
The rise in $1M+ homes highlights long-term capital appreciation — even in regional centres.
Queensland continues to be a favourite, but broader confidence is returning across key markets.
The rate cut is a timely reminder: waiting may cost you.
Ready to make 2025 the year you realise your potential as an investor?
🎯 Book your complimentary discovery call with our expert team using the link below. Gain confidence, get clarity, and secure your own plan for success.
Tom Haigh
Director & Licensed Buyers Agent
Groundswell Property - a decade of trusted advice
tom@groundswellproperty.net
0439754475