Key takeaways
Labor’s re-election brings policy stability, but it's FHB policies will add fuel to the flames of our housing markets.
Inflation has finally fallen within the RBA’s 2–3% target band, with underlying inflation now at 2.9%—but the Reserve Bank is still hesitant to cut interest rates just yet.
Rental markets eased slightly in April due to holiday disruptions, but low vacancy rates and returning demand point to further rental increases in May.
Auction clearance rates rose across major capitals despite fewer listings—Melbourne and Sydney remain particularly strong, indicating solid buyer demand.
Falling oil prices are helping drive down inflation, easing cost-of-living pressures and potentially setting the stage for a more investor-friendly environment later in 2025.
The dust has settled.
The voting booths are packed away. The sausage sizzles have cooled.
And the Albanese-led Labor government has secured another term in office.
But what does this mean for the Australian property market?
That’s the big question I put to Dr. Andrew Wilson, in this week’s Property Insider video chat.
And with a fresh federal mandate, new inflation data, and a still-tight rental market to consider—there’s a lot to unpack.
Here’s a summary of what we discussed, and what it means for property investors.
Election Result: Continuity or Curveball?
Watch this week's Property Insider chat and hear how Dr. Wilson wasn’t surprised by the election outcome.
And while there wasn’t a major policy wedge on property between the two major parties this time around.
But that doesn’t mean we won’t see housing in the government’s spotlight.
With affordability concerns and rising rents dominating headlines, we can expect continued political pressure to “do something.”
The challenge, of course, is that any new initiatives—particularly those that attempt to "fix" rental markets or target investors—must navigate economic realities, not just campaign slogans.
Labor's election win signals more pressure on our housing markets, as their proposed policies will unintentionally worsen the already critical supply-demand imbalance.
You can read more about this here: Labor Just Won the Election — and They’re About to Pour Petrol on Our Housing Crisis.
Rental Markets Ease
Across the capital cities, rental markets experienced a temporary reprieve in April, largely due to holiday season distractions and reduced tenant activity.
But don’t get too comfortable.
- Also read:Latest Property Asking Prices State by State | New Listings down by 11.6% Compared to March 2025
- Also read:The Election’s Over… But What Happens Next for Property? | Property Insiders
- Also read:Auction Report May 3rd 2025 | Strengthening Auction Markets as Holiday Month Passes
- Also read:Values higher in April despite uncertainty from tariffs & federal election | Latest Corelogic Data
- Also read:Lower Rates Drive Home Prices Higher Over April | Latest Housing Market Stats Dr. Andrew Wilson
Watch this week's Property Insider video and you'll hear Andrew expects a return to tighter conditions in May, with vacancy rates remaining stubbornly low:
Inflation Now in Target Range
Note: Annual underlying inflation has fallen to 2.9%, now within the RBA’s target band of 2–3%.
Watch this week's Property Insiders chat as Dr. Wilson discusses the sharp cooling of inflation.
Headline inflation is steady at 2.4%, and services inflation has cooled from 4.3% to 3.7%.
Even energy price pressures are moderating.
That’s good news for mortgage holders and investors—but here’s the catch:
While underlying annual quarterly inflation is now within the RBA target range (2-3%), is this "sustainably" moving to the mid-point of the range as the Bank has stipulated as a precondition for possible rate cut.
Having said that all our major banks are forecasting a rate cut in May.
A summary of the latest ABS stats
- Headline CPI was +0.9% over the quarter and +2.4% over the year which was unchanged from the previous quarter and the lowest headline CPI since Mar 21.
- The RBA’s preferred measure of underlying inflation, trimmed mean, was +0.7% over the quarter and +2.9% over the year which was the lowest annual increase in inflation since Dec 21.
- The housing subgroup saw inflation +1.7% over the quarter and +2% over the year with the expiry of energy rebates leading to a strong quarterly increase.
- Rents were +5.5% over the year, their slowest growth since Mar 23 while new dwelling purchase by owner occupiers were +1.4% over the year and the slowest growth since Jun 21.
In this week's Property Insider chat you'll hear Andrew explain how inflation tracks oil prices and oil prices are falling so it's likely inflation will keep falling.
Strengthening Auction Markets as Holiday Month Passes
Auction clearance rates and listings were generally higher in most capitals over the past week as markets resumed with more focus following the lengthy holiday distractions in April, including General Election Day.
The national weekend auction market reported an average clearance rate of 62.7% over the past week which was higher than the 61.0% reported over the previous week but lower than the 65.0% reported over the same week last year.
Auction markets will pick up over coming weeks now mostly free from the holiday distractions of the past month.
