Australia’s property market is expected to see continued growth in 2025, with smaller capital cities like Perth, Brisbane, and Adelaide leading the way. According to SQM Research’s 2025 Boom and Bust Report, a likely mid-year interest rate cut of 25 to 50 basis points could drive property values higher by 1% to 4%.
Perth is projected to see the strongest price growth, with increases between 14% and 19%, followed by Brisbane and Adelaide with steady gains. Meanwhile, Sydney and Melbourne are expected to start the year with slight declines of up to 5% before rebounding later in the year as demand strengthens.
SQM Research managing director Louis Christopher highlights that while Australia’s two largest cities may face initial declines, a potential rate cut and persistent housing shortages amidst strong population growth could spark a rapid recovery.
