Key takeaways
Buyer and seller sentiment significantly impacts property listings, transactions, and price trends, with regional variations playing a key role.
2025 offers a landscape of opportunity shaped by evolving lifestyles, regional trends, and stable interest rates.
Staying informed and focusing on quality opportunities will be key to navigating the market.
Have you ever wondered what really drives our housing markets?
Put simply...the dynamics of Australia’s property market are intricately tied to buyer and seller sentiment, influencing not just the number of listings and transactions but also property price trends.
In fact, the latest realestate.com.au Residential Audience Pulse Survey provided insights into current market sentiment, highlighting regional variations and the factors shaping these trends.
Seller sentiment: resilient but showing signs of softening
While sellers across the nation continue to exhibit resilience, the data from realestate.com.au's survey reveals subtle shifts in confidence.
Notably, Tasmanian sellers are bucking the broader trend.
The survey indicates a 15% increase in the number of Tasmanians who believe it’s a good time to sell, underpinned by price growth in the state when other markets are beginning to plateau.
Tasmania’s distinct housing market performance has set it apart, with increasing values amidst softening growth elsewhere.
On the other hand, sellers in New South Wales and Victoria are more reserved, reflecting modest price growth in these key markets.
Nevertheless, the overall performance of the 2024 spring selling season exceeded expectations, underscoring the enduring resilience of Australia’s property market.
Karen Dellow, Senior Audience Analyst at PropTrack said:
"Western Australia, in particular, remains a standout performer, buoyed by significant price growth.
Perth’s home values surged by 17.6% over the past year, with sellers taking advantage of elevated prices driven by robust demand.
While personal circumstances often dictate the decision to sell, the current high property prices provide an additional incentive."
Buyer sentiment: steady optimism and regional growth
According to the report, on the buyer side, sentiment has remained consistent, with approximately one-third of buyers expressing confidence that now is a good time to purchase.
Victoria stands out, where 40% of respondents feel positive about buying opportunities, thanks to plateauing prices.
Meanwhile, Queensland and South Australia are also experiencing a wave of optimism.
In fact, buyer confidence in South Australia surged by 48%, complemented by rising interest in Queensland’s regional markets, where affordability and lifestyle appeal drive demand.
Many buyers are motivated by a desire for larger homes or relocation to scenic areas near beaches or mountains, reflecting evolving lifestyle preferences.
- Also read:Melbourne property market forecast for 2025
- Also read:Brisbane’s property market forecast for 2025
- Also read:Latest property price forecasts for 2025 revealed. What’s ahead in our housing markets in the next year or two?
- Also read:Sydney property market forecast for 2025
- Also read:You’ll never believe the most affordable regions to rent in Australia
Ms Dellow also noted:
"Australia’s aging population is another significant factor shaping buyer behavior.
The increasing demand for downsizing has driven interest in luxury apartments and retirement living developments, further diversifying the market landscape."
The role of interest rates in market stability
The report highlighted that interest rate expectations continue to be a pivotal factor influencing both buyer and seller sentiment.
Encouragingly, fears of rising rates have diminished, with only 16% of buyers anticipating increases in the next six months, and a dominant 67% expecting rates to stabilize or decrease.
This easing of financial concerns is mirrored among sellers, with 72% confident that rates will hold steady or decline.
Ms Dellow pointed out:
"The shared optimism regarding interest rates suggests continued market engagement, despite a backdrop of historically high borrowing costs throughout 2024.
For many, the decision to buy or sell is dictated by personal circumstances rather than waiting for perfect market conditions, reinforcing the resilience of the property market."
Looking ahead: moderated growth but promising trends for 2025
Last year (2024) closed with the Australian property market’s performance underscores its resilience.
States like Tasmania and Western Australia are expected to continue their strong performance into 2025, buoyed by regional price growth and sustained demand.
Buyers in Queensland and South Australia highlight the appeal of regional affordability and lifestyle-oriented purchases.
PropTrack’s forecast of continued price growth in 2025 reflects these underlying trends, although the pace of growth is expected to moderate.
Declining concerns over interest rates, coupled with steady activity in key regions, paint a promising picture for the months ahead.
In my mind, the property market’s ability to adapt to shifting sentiments and external pressures reaffirms its strength.
For buyers, sellers, and investors, 2025 offers a landscape of opportunity, shaped by evolving lifestyles, regional trends, and a shared confidence in the stability of the market.
As I always say, by focusing on the right opportunities and staying attuned to market dynamics, Australians can navigate this environment with optimism and informed decision-making.
The year ahead promises growth and resilience, setting a solid foundation for the long-term prospects of the property sector.
