Report reveals shifting buyer sentiment, affordability gaps, and growth disparities
Australia’s residential property market displayed mixed performance in the first quarter of 2025, reflecting regional variations in buyer confidence, price trends, and supply pressures, according to the latest update from the Property Investment Professionals of Australia (PIPA).
Drawing on expert commentary, the PIPA National Market Update outlines divergent trajectories in capital cities and regional hubs across the country.
PIPA chair Nicola McDougall (pictured above) said New South Wales was beginning to show signs of a turnaround, supported by greater buyer sentiment, more stable pricing, and recent monetary policy changes.
“The property market in Victoria is showing specific pockets of opportunities despite challenges like policy uncertainties,” she said. “Melbourne is particularly attractive due to affordable housing options, with increasing demand for well-located units in areas like Carlton.”
In Queensland, housing markets remained resilient, although momentum had slowed compared to previous quarters. McDougall said regional centres such as Mackay and Townsville had posted notable gains, while Brisbane continued to see demand for attached dwellings.
The PIPA National Market Update also indicated that underlying factors such as rapid population growth, low stock levels, and elevated building costs are sustaining demand in many parts of the country. Meanwhile, Adelaide remains a key market for investors due to its affordability, diverse property options, and robust economic growth fuelled by large-scale projects like the AUKUS submarine initiative.
Perth maintained its strong performance, recording the highest annual growth rate among Australian capitals. “Despite moderating growth, limited supply, high rental yields, and affordability compared to other states ensure sustained demand in this market,” McDougall said.
Canberra, according to the report, is moving toward a more balanced position as it adapts to broader economic trends. “Canberra's market shows early signs of balance as it adjusts to economic shifts. Investors may face regulatory challenges, yet steady demand and strong job security underpin a positive outlook for the property market,” McDougall said.
In Tasmania, activity has picked up following a recent slowdown, supported by infrastructure spending and improved transaction volumes. However, according to McDougall, the state’s rental market faces affordability challenges, necessitating policy action to address the widening gap between supply and demand.
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