First home buyer activity lifts and drives demand for entry-level property

First home buyers were the most active buyer type in Q4 2025 with demand for entry-level property also seeing an uptick, a new CBRE analysis shows.

CBRE’s Residential Valuer Insights Q4 2025 report surveyed CBRE Valuers from across Australia to provide expert insights on local and national trends.

The report also provides analysis of the evolution of market sentiment and pricing expectations throughout the year.

The survey shows in Q4, a total of 71% of Valuers reported first home buyers as active followed by local investors at 58% and upgraders at 52%.

CBRE’s Pacific Head of Research Sameer Chopra noted, “Low-level of unemployment bodes well for continued resilience in the first home buyer market, particularly outside of Sydney and Melbourne.”

Across 2025, first home buyers, local investors and upgraders have consistently been the most active buyer types.

While demand remains strongest for established houses, Valuers reported demand for villas/townhouses and apartments increased in Q4, likely driven by first home buyers.

Kat Hale, CBRE’s Residential Valuations National Director said, “Entry-level demand is rising, led by first home buyers and supported by incentives like the 5% Deposit Scheme. This has particularly boosted interest in apartments and townhouses as affordability remains a key focus.”

“More broadly, demand in the residential property is strengthening but a shortage of listings still remains,” Ms Hale added.

Throughout 2025, there has been a strengthening in market demand. In Q1 only 26% of Valuers reported ‘strong’ or ‘very strong’ demand. This increased to 28% in Q2, 43% in Q3 and 60% in Q4.

Valuers reported the strongest demand in Adelaide and Perth in the first three quarters of the year. In Q4 the strongest demand was reported in Adelaide and Brisbane metro.

Other key findings:

• Looking ahead, in Q4 59% of Valuers expect market demand to increase, compared to only 43% in Q1.
• When it comes to growth, 62% of Valuers expect apartment values to increase over the next 12 months. The most growth is expected in Brisbane Metro, the Gold and Sunshine Coasts and Perth.
• A total of 86% of Valuers expect house values to grow in the next 12 months, which is an increase from 55% in Q1. The most growth is expected in Adelaide, Brisbane Metro and Sydney Outer Metro.
• Valuers expect to see the largest increase in supply (listings) in Melbourne Metro, Perth and Adelaide.