The real estate market in 2025 is shaping up to be an exciting yet challenging landscape for buyers in both Australia and New Zealand. With moderate growth expected across both nations and key areas primed for property booms, staying informed and prepared will be essential for anyone looking to secure their dream home. Here are the top 10 things you need to know to navigate the market effectively and avoid missing out.

1. Expect moderate growth in property prices

Australia’s property market is forecast to expand in 2025, with cities such as Perth and Brisbane expected to demonstrate stronger growth. In contrast, Sydney and Melbourne may experience more moderate increases in property values (SQM Research 2024). In New Zealand, house prices are projected to recover in 2025, driven by anticipated reductions in interest rates and government initiatives to support buyers (Reuters 2024).

2. Competition will remain fierce

Despite a more stable market, competition for homes in desirable areas will stay high. The pandemic-driven shifts in lifestyle priorities continue to make suburban and regional properties attractive, so it’s vital to act quickly and decisively when you find the right property.

3. Interest rates are easing

According to The Property Outlook Report 2025, the predicted easing of interest rates in 2025 will provide relief for buyers. This change is expected to improve affordability and access to credit. However, while rates might drop, staying within your budget is key, as fluctuating economic conditions could still affect repayments.

4. Government assistance programs can help

First-time buyers should take advantage of government incentives like the First Home Owner Grant (FHOG) in Australia and KiwiSaver First Home Withdrawal in New Zealand. These programs can significantly lower the financial barriers to entering the market.

5. Build a financial buffer

While affordability may improve, don’t forget to budget for additional costs like stamp duty, legal fees, inspections, and moving expenses. Also, having a financial buffer is critical in case of unexpected costs or economic shifts.

6. Pre-approval is essential

Securing a mortgage pre-approval not only clarifies your budget but also signals to sellers that you’re a serious buyer. In competitive markets, this can give you an edge when making offers.

7. Research hotspots and suburbs set to boom

Look out for suburbs poised for growth. In Australia, emerging neighborhoods in cities like Perth, Brisbane, and regional areas are expected to thrive. New Zealand’s smaller cities and lifestyle-focused regions could see significant interest as remote work continues to influence housing demand.

8. Don’t neglect inspections

Building and pest inspections remain crucial. Even in a hot market, rushing a purchase without proper checks can lead to costly surprises. Always ensure the property you’re buying is structurally sound and free of major issues.

9. Stay emotionally grounded

In a competitive environment, it’s easy to get caught up in bidding wars or stretch your budget for a property that feels perfect. Remember to keep a clear head and stick to what you can afford, balancing your emotional desires with practical considerations.

10. Plan for long-term sustainability

With experts predicting continued growth in real estate values, investing now can set you up for long-term gains. However, choose properties that align with your lifestyle and financial goals—not just those that seem like trendy investments.

The property market in 2025 offers promising opportunities, but preparation will be your greatest asset. From researching market trends to securing pre-approvals and leveraging government incentives, taking these steps will ensure you’re ready to act when the time comes.

Stay informed, stay prepared, and don’t let the market leave you behind. With careful planning and a clear strategy, you’ll be well on your way to purchasing your dream home in 2025.

References
Reuters 2024, New Zealand house prices to rise 6% next year on lower interest rates, Reuters, viewed 17 December 2024, https://www.reuters.com/markets/new-zealand-house-prices-rise-6-next-year-lower-interest-rates-2024-09-01/.

SQM Research 2024, Christopher’s Housing Boom and Bust Report 2025, Daily Telegraph, viewed 17 December 2024, https://www.dailytelegraph.com.au/real-estate/national/early-rate-cut-would-see-values-boom-sqm-research-report/news-story/b663eefc6a3800898a9fdd7a32809fec.