Property Update 2025: Market Trends with Arjun Paliwal
Jun 26, 2025
By Molly Benjamin, Founder of Ladies Finance Club
Listen to the full podcast here.
What’s really happening in the Australian real estate market right now? In this Get Rich podcast, I sat down with property expert Arjun Paliwal to break down the latest market update, property trends across the country, and how changes in interest rates and policy are shaping the housing market in 2025.
Whether you're a first home buyer, investor, or just watching the market, here’s what you need to know.
Australian Real Estate Hits $11.3 Trillion: What It Means for Buyers and Investors
The Australian residential property market is now worth a staggering $11.3 trillion, more than triple the value of the Australian stock market. For buyers and investors, this highlights the scale and impact of real estate on the national economy, making it one of the most powerful tools for long-term wealth creation.
2025 National Housing Market Trends: Growth Picks Up After a Quiet Year
The latest market update shows that national property values have grown 3.2% over the past year, with signs of acceleration, quarterly growth is now tracking at 1.1%. That suggests we’re heading into a period of renewed activity and recovery after a slower 2024.
Regional vs Capital City Growth: Who’s Winning in the Current Housing Market?
Over the last 12 months:
- Regional areas have grown by 5.3%
- Capital cities by 2.6%
Arjun highlights Darwin as the standout performer among capital cities, with 3.4% quarterly growth, while Regional South Australia leads the pack among regional markets with 3.5% growth. Understanding where growth is happening is key for smart property investment.
Why Darwin Property Prices Are Rising: Key Drivers Behind the Boom
Darwin is benefiting from:
- Major infrastructure projects
- High rental yields
- Long-term affordability
After years of lagging behind other capitals, Darwin’s property market is catching investor attention, offering opportunities for those looking beyond Sydney and Melbourne.
The 2025 Economic Outlook for Interest Rates in Australia
Arjun predicts a significant drop in interest rates over the next 12–24 months, with a return to a more balanced 2.5%–3.5% range. Lower interest rates will:
- Increase borrowing capacity
- Improve cash flow for property owners
- Spark more demand from both first home buyers and investors
This shift in the economic outlook could be a catalyst for major market activity.
Smart Investment Strategies: Where to Find Property Value in 2025
Arjun advises looking at price quartiles across each market rather than just focusing on location. Right now, lower-priced properties in outer suburbs are showing strong growth but this may reverse as interest rates fall.
The opportunity? Look ahead to inner-city and mid-to-upper price point properties, which may soon begin to outperform after a few slower years.
2026 First Home Buyer Policy Changes: What You Need to Know Now
Massive policy changes are coming for first home buyers in 2026, especially in NSW. Price caps for grants will increase by hundreds of thousands, expanding what’s possible for new buyers and likely driving up demand for properties under $1.5 million.
This change is expected to:
- Expand buyer access to better properties
- Encourage some buyers to delay purchases
- Increase competition in the sub-$1.5M market
Housing Market Outlook: Will Inner-City Properties Outperform Again?
Historically, inner-city suburbs lead the market when interest rates fall but the recent rate hikes flipped that trend. As rates ease, expect inner suburbs and higher-priced homes to bounce back.
Now could be a smart time to:
- Target inner-city areas before prices rise
- Consider upsizing while price gaps are still narrow
- Position ahead of the next cycle in higher-value suburbs
Property Investment in 2025: What to Watch and Where to Act
Buyers and investors are no longer waiting for the “perfect time.” Arjun notes a clear trend: many are choosing to act now, anticipating more competition and rising prices once rates fall.
Key takeaways for your property investment strategy:
- Identify value by quartile, not just suburb
- Watch for trends reversing as rates drop
- Move early to get ahead of competition
Want personalised support with your property goals? Book a free consultation with Arjun’s team at investorkit.com.au to explore where the opportunities lie based on your budget, goals, and the current economic landscape.
Catch the full episode of Get Rich wherever you listen to podcasts, and don’t forget to subscribe for more insights on investing, money, and wealth-building strategies, minus the jargon.
