2025 Property Insights: Real Estate Booms Expected in Multiple Cities

and Perth, all expected to achieve double-digit growth.

Propertyology’s latest research predicts a real estate boom in 11 of Australia’s 25 largest cities in 2025, presenting exciting opportunities for homebuyers and investors.

Top Performers

Leading the charge is Townsville, expected to see property values rise 25-30%. With a population of 205,000 and a median house price of $520,000, its economic growth and recognition as Australia’s Port of the Year for 2024 position it as a top investment pick.

Other strong markets include the Sunshine Coast, forecasted for 12-16% growth due to high internal migration, and Adelaide, Brisbane,

Underperforming Markets

In contrast, Sydney and Melbourne are anticipated to see slight declines, with Sydney facing a potential 5% drop in property values.

National Trends Driving Growth

Despite a 25% drop in housing supply over the past decade, Australia’s population has grown by 4 million, fueling robust demand. A strong job market further supports this trend.

Last year, over 117,000 frst-home buyers entered the market, up 9% from 2023. If interest rates drop, this could reach 150,000 in 2025. Both Gen Y investors from high-cost cities and Gen X investors leveraging equity for retirement are expected to drive activity.

Regional Outlook

Strong growth is expected in Western Australia, Queensland, and South Australia, while Tasmania and Northern Territory will see gradual improvement. In New South Wales, Newcastle and Central Coast show promise.

Challenges in Victoria

Victoria’s economic struggles, including projected debt of $228 billion by 2028, may limit growth due to lagging private investment and rising public debt.

Key Takeaway Investors should consider emerging regional markets like Townsville and Sunshine Coast while remaining cautious about major city downturns.