Professionals Real Estate 
Latest performance figures
National home values rose slowly but steadily over the 24-25 financial year, increasing by 3.4%. Australia achieved 1.4% over the second quarter of the year, but the pace of growth is now accelerating.
Growth forecast
House prices are forecast to rise gradually throughout the second half of 2025, in line with trends of between 3 and 4 per cent year-on-year. Sydney and Melbourne are expected to lead the next growth phase, driven by ongoing demand and falling interest rates. Units are expected to experience strong growth as buyers seek affordable entry points and lower-maintenance lifestyles.
What’s driving property prices?
Several factors are contributing to Australia’s positive market trajectory:
- Interest rate cuts: Two recent rate cuts and the expectation of more to come is fuelling buyer interest as people prepare for their next move.
- Supply constraints: Despite an increase in building approvals and a general flatlining of building costs, the lag in construction means that housing supply remains tight.
- Affordability pressures: High rental costs and limited housing availability are prompting more individuals to consider homeownership, further boosting demand.
Market sentiment and profitability
The market sentiment is optimistic, with a significant majority of property resales resulting in profits. In the March quarter of 2025, 94.9 percent of property resales were profitable, with average gains of around $300,000.
Sell well before the end of 2025
With projected price increases, favourable interest rates and strong buyer demand, the second half of 2025 presents compelling opportunities for sellers.
Your local Professionals real estate agent can provide tailored advice to achieve the best possible price.
