According to Propertyology’s latest market outlook, some regions are set to experience explosive growth, while others, particularly some of the country’s major capital cities, are expected to struggle. Head of research at Propertyology and REIA Hall of Famer, Simon Pressley, paints a picture of a market shaped by supply shortages, population growth and strong economic fundamentals.
One of the standout performers in 2025 is expected to be Townsville, with Propertyology forecasting a 30 percent growth in house prices. In an interview with Sky News Simon described the city’s momentum as unparalleled in Australia’s recent economic history.
“It’s already had strong growth over the last five years. We’ve had a 70 percent increase in the spending house price,” he said. “It’s the single biggest economic growth pipeline we’ve seen for any city in Australia for probably a couple of decades to be honest.”
The broader North Queensland region is also experiencing strong market conditions, with Cairns and the Fraser Coast both expected to record growth between 7 and 8 percent. The Sunshine Coast, another major hotspot, is forecast to see 15 percent growth, making it the second-best-performing property market in Australia behind Townsville.
For real estate agents, this means heightened demand and increased competition in these high-growth areas with agents operating in Queensland, South Australia, and Western Australia well-positioned to capitalise on expanding markets.
However, agents working in Sydney and Melbourne may face different challenges. Sydney is expected to see a decline of around 4 percent in its median house price, largely due to stagnating job growth and an oversupply of housing stock.
“I guess one of the biggest concerns we have for Sydney is while Australia has seen an increase of about 10 percent in jobs over the last three years, Sydney’s only had about 4 percent increase in CBD, which is of course Australia’s economic engine.
“And there is elevated housing stock on the market as well,” he explained.
Melbourne’s outlook is even bleaker and is officially the worst performed property market in Australia over the last five years. Simon pointed to Victoria’s taxation policies and unfriendly investment climate as key contributors to its struggles.
“We’ve seen a net 82,000 people relocate away from Melbourne over the last five years. I mean, that’s enough people to build a city the size of Coffs Harbour or Rockhampton or something like that.”
Adding to Melbourne’s woes is its mounting state debt, which Pressley described as unprecedented. “It’s now got a monthly interest bill of about 1 billion. So the infrastructure pipeline for years to come is going to be very, very strong.”
Simon’s insights are supported by a range of key Propertyology market statistics that highlight the supply and demand imbalances driving property prices. For real estate agents, understanding these figures is crucial in navigating the market in 2025.
The total supply of homes currently for sale is 272,645, which is 25 percent less than 10 years ago. Australia’s population has increased by 4 million over the last decade. There have been 538,111 new home construction commencements over the last three financial years.
The number of homes currently advertised for rent is 41,894, which is 37 percent less than a decade ago. Governments collected over $100 billion in property tax revenue last year alone. Generation Y investors own 32 percent of the national rental pool, and median house values in many of Australia’s 400-plus cities and townships have increased by 300 percent over the past 20 years.
Tasmania has long been a strong performer in the property market, with Hobart officially recognised as Australia’s best-performing property market over the last 30 years. However, in the past two years, growth has been flat. That trend could shift in 2025, with growing confidence expected to carry through into the new year.
“The best performing property market in Tasmania will be in the north of the state, in the beautiful city of Launceston.”
