State-by-State Property Trends in Australia for 2025: What First Home Buyers and Investors Need to Know on Get Rich with Eliza Owen.

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

The Australian real estate market is shifting rapidly, and 2025 is shaping up to be a defining year. Whether you're a first home buyer, seasoned investor, or just trying to get a clearer picture of what's going on, understanding state-by-state property data can make a huge difference. In this episode of the Ladies Finance Club podcast, Molly chats with Eliza Owen, Head of Research at CoreLogic, about home ownership trends, generational changes, and key market insights across Australia.

How Property Prices Have Shifted Over Time in Australia

If you’re feeling like the dream of owning a home is getting further out of reach, you’re not alone. Home ownership is tougher now than it was for the boomer generation. In the mid-90s, the median home value across Australia sat at $120,000 – just 2 to 3 times the average household income. Fast-forward to November 2024 and that median has skyrocketed to $815,000 –more than 8 times the average income.

It’s not just the price tags that have changed. Australians are buying later in life, with the average first home buyer now 34 years old (up from 27), and longer loan terms are the norm, with 30-year mortgages becoming standard.

The Main Forces Driving Property Prices in 2025

Eliza highlights several key drivers behind today’s soaring property values:

• Interest Rates: After sitting at record lows, interest rates have increased dramatically. But surprisingly, the market has stayed strong, thanks to ongoing demand.
  
  
• Population Growth: States like Queensland and WA are booming, driven by interstate migration and overseas arrivals.
  
  
• Housing Supply Shortages: Demand continues to outstrip supply in many regions, particularly in capital cities where construction can’t keep up.
  
  

Government Policy: Incentives, tax rules and housing grants have all played a part in influencing buyer behaviour and shaping investment strategies.

Queensland Property Market Trends: A Hotspot Cooling Off

Queensland has been one of the biggest success stories in Australia’s real estate scene. Since 2020, Brisbane home values have soared nearly 70%, and regional areas like Townsville have surged ahead, with growth as high as 25% in just one year.

But the pace is starting to cool. Listings are increasing and buyer competition is easing. While prices remain high, this could present opportunities for first home buyers and savvy investors willing to shop smart.

Western Australia Leads the Way with Price Growth

Perth and greater WA are topping the charts with a massive 20.5% growth over the past year. After years of lagging post-mining boom, WA has bounced back, thanks to rising commodity prices, job opportunities, and relatively affordable entry points for buyers.

Why South Australia Is a Hidden Gem for Buyers and Investors

Adelaide is on the rise, with property values up 14% in the past 12 months. With a more accessible price point and strong internal migration from Victoria, it’s a market to watch for long-term growth and liveability.

Victoria’s Property Market Sees a Downturn – But That’s Not All Bad

Victoria’s property market, especially Melbourne, is currently in a downswing. Home values have dropped about 5% from their peak, which might worry some investors. But for first home buyers, it’s an opportunity. The state also leads the country in first home buyer finance approvals, showing that many are stepping into the market while prices are lower.

New South Wales Real Estate Market Shows Signs of Softening

Sydney’s property market has remained high, but recent trends show a slight dip. Over spring 2024, prices fell by 0.5%, indicating a shift from a seller’s to a buyer’s market. With a median house price still hovering around $1.5 million, buyers may now have more room to negotiate.

Tasmania and Northern Territory Property Markets Stay Flat

Tasmania and the NT have both seen slow growth or declines in home values. In Tasmania, prices have dropped around 12% since the 2022 peak, while the NT has remained flat. These changes are linked to negative internal migration – more people leaving than moving in – which has affected demand.

Canberra Property Market: High House Prices, Soft Unit Market

The ACT continues to be one of the most expensive places to buy a house in Australia, with prices exceeding $1 million. But unit prices are down nearly 3%, thanks to an oversupply. For those looking to buy in Canberra, units could offer a more affordable way into the market.

What to Expect from Australia’s Property Market Over the Next Five Years

Eliza predicts affordability will be the major trend to watch over the next few years. High-growth areas like WA and Queensland may slow down as they become less affordable, while buyers could start returning to more budget-friendly regions like Victoria and Tasmania.

Another emerging trend? Rentvesting – where first home buyers purchase an investment property in a more affordable area while continuing to rent where they actually want to live.

Tips for First Home Buyers and Property Investors in 2025

• Think long-term. Property is a game of patience – and long-term capital growth is where the gains happen.
  
  
• Watch for price drops. Cooling markets like Melbourne could offer smart entry points.
  
  
• Look beyond your suburb. Spillover markets and regional towns might deliver better value.
  
  

Stay on top of grants and incentives. Government schemes can make a big difference to your deposit and borrowing power.

Property Investment Is Personal

Whether you're building a portfolio or just trying to buy your first home, there’s no one-size-fits-all strategy. Use property market analysis tools like those from CoreLogic, stay across market trends, and make decisions that work for your lifestyle, budget, and long-term goals.

Want to learn more? Tune into the full podcast episode with Eliza Owen for all the insights, and join the Ladies Finance Club community to keep growing your financial literacy and confidence

Plus, a huge shoutout to our sponsor, InvestorKit! Australia’s #1 Buyers Agency for 2023 and 2024. They specialise in helping investors find high-growth properties utilising industry leading AI and data driven research process across Australia. 70%+ of the properties they purchase are off-market and they have consistently outperformed national average capital growth rates by over 49%. Whether you’re looking to build your property portfolio or secure your first investment. Check them out here..