Australian Property Market Forecast: What to Expect in 2025–2030
Australia’s property market is on track for another period of strong growth—good news for sellers, but challenging for first-home buyers trying to break in.
Two major reports—the Domain Price Forecast Report and PropTrack’s 2030 growth modelling—paint a picture of ongoing price rises across capital cities, driven by interest rate cuts, low supply, and high demand.
2025–2026: Prices Climb Again, Led by Sydney and Melbourne
According to Domain’s June 2025 Price Forecast, house prices are set to climb further over the next 12 months, particularly in Sydney and Melbourne:
Sydney: Up 7% to a median of $1.83 million by June 2026—a $112,000 jump, more than the average annual salary.
Melbourne: Tipped to rise 6% after two flat years, hitting $1.1 million.
Brisbane, Adelaide, and Perth: These markets are starting to cool but remain out of reach for many buyers.
The Australian Bureau of Statistics reports that the national average house price has now surpassed $1 million for the first time—a significant milestone that reflects long-term affordability pressure.
Dr Nicola Powell, Domain’s Chief of Research and Economics, called the coming year a “reality check” for first-home hopefuls:
“While interest rate cuts and government support may offer some help, they’re also likely to keep prices rising—especially in Sydney and Melbourne, where the market is more sensitive to rate changes.”
Unit prices are also expected to rise as more buyers shift focus due to affordability constraints. Domain notes that record highs for unit prices are likely in most capitals, driven by demand and borrowing power improvements as rates fall.
To 2030: Could Prices Double in Some Areas?
While Domain’s report focuses on short-term movements, new modelling from PropTrack shows what could happen if the price trends from the past five years were to continue through 2030.
This isn’t a prediction—but a projection based on past growth rates. The results are striking:
Sydney: Median house price could rise 61% to $2.4 million.
Brisbane: Up 68% to $1.53 million.
Adelaide: Surging 75%, reaching $1.47 million.
Melbourne: More modest growth of 17%, but still breaking the $1 million median mark.
Darwin & Perth: Expected increases of 30–66% depending on the area.
Hobart & Canberra: Forecast growth of 40–41% in some suburbs.
Even traditionally more affordable regions like regional Queensland, northern Adelaide, and parts of WA have seen sharp increases and may become less accessible if trends persist.
What It All Means—for Buyers, Sellers, and Owners
For first-home buyers:
The window to enter the market may narrow further, especially in major cities. Consider options like buying a unit, purchasing with family support, or buying in emerging outer-metro or regional areas.
For homeowners:
If you already own property, now may be the perfect time to review your mortgage, check for better rates, or explore ways to leverage equity while property values are high.
For those with ATO debt or rising repayments:
We’re seeing more clients under pressure due to tax debt and cash flow strain. The good news? There are options—whether that’s refinancing, restructuring, or debt consolidation—but it’s always better to act early.
Final Thoughts
If current trends and expert commentary play out as expected, Australia’s property landscape could continue to shift in favour of sellers—while buyers may face increasing pressure to act quickly and stay informed.
While there are no guarantees, recent media reports and property market forecasts suggest that further interest rate cuts (potentially another 80 basis points by mid-2026, based on current market pricing) could increase borrowing power for many Australians. If that occurs, it may also contribute to ongoing upward pressure on property prices.
This information is based on publicly available reports from sources such as Domain, PropTrack, and broader market commentary. It is not intended as financial advice. Always seek tailored advice before making decisions based on forecasts or projections.
WhiteStar Mortgage Brokers tip?
If you’re thinking about buying, refinancing, or just want to understand your options—reach out to the team at WhiteStar.
We’ve spoken to so many first-home buyers who were ready to act, but held back—understandably nervous to take the next step. But based on the data, waiting could mean paying significantly more for the same property in just a few months.
We’re here to guide you when you feel ready—but don’t wait so long that opportunity passes you by
Give us a call 1300 652 842 , jump on live chat, or send an email .
Or if you’d prefer to start with a bit more info, you can also Download our Free Refinance Guide to see what’s involved and what to watch out for.
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