Australian Residential Figures Report Q1 2025

Key Points:

• Australia’s residential markets have made a promising start to 2025. Sydney and Melbourne have both bounced back a little from declines. Brisbane, Perth, and Adelaide continue to grow, albeit at a slower pace.
• The price spread between houses and units nationally remains at a near record high and in Sydney, is more than double. The smaller markets, however, have seen the spread close in recent quarters with unit price growth outperforming.
• Further interest rate cuts are expected to boost sentiment. The headwinds resulting from global economic uncertainty, however, may lead to lumpy value movement over the next couple of quarters.
• A slight easing in population growth has released some of the pressure on the rental market, and affordability barriers have contributed to a moderation in rental growth. Nevertheless, national vacancy was sitting at 1.3% in February.
• Supply remains limited, with CBRE forecasting a cumulative deficit of 75,000 apartments through to 2029. This dynamic suggests that rents will continue to rise at a moderate pace until more supply is delivered later in the decade.