Just like that, it’s 2025. Can you believe how quickly 2024 flew by? For ALC Projects, it was a year to remember, marked by record sales and successful build completions. Now, as we step into the new year, there’s a buzz of optimism in the property market that has us excited for what lies ahead. Here’s our take on the trends and opportunities shaping the Australian property landscape in 2025.
A Positive Property Market
The property market is showing some real signs of positivity. Alongside strong activity from owner-occupiers and first-home buyers, we’re also seeing a notable rise in investor interest. The numbers speak for themselves:
- Property prices are tipped to keep climbing, particularly in Australia’s smaller capital cities. Brisbane is projected to see growth of 9% to 14%, while Adelaide isn’t far behind with an expected rise of 8% to 13%.
- Detached homes are in high demand, with the Housing Industry Association reporting a two-year high in approvals for new homes. In November alone, there were 9,890 approvals Australia wide for detached dwellings.
For South East Queensland and Adelaide, sales volumes are expected to perform strongly as more stock becomes available in 2025. Melbourne, too, is looking attractive to investors seeking higher capital growth, potentially marking a turning point in the city’s recovery.
Land Costs and Regional Hotspots
If you thought land prices in South East Queensland couldn’t climb higher, think again. In 2024, land costs jumped significantly, with increases ranging from $30,000 to $120,000 (approximately 9% to 20%). This made SEQ one of the strongest land markets in the country, and 2025 looks set to continue this trend.
Meanwhile, Adelaide and Brisbane are emerging as standout performers for property investors, offering attractive growth prospects without the hefty price tags of Sydney and Melbourne. Interstate migration is further fuelling demand in South East Queensland, solidifying its position as a key market for both owner-occupiers and investors.
Interest Rates and Lending Trends
Interest rates remain a hot topic as we enter 2025. While rates hit decade-high levels last year, inflation is finally edging closer to the Reserve Bank’s target range of 2% to 3%. Economists are cautiously optimistic, predicting we might see the first interest rate cuts this year. Once that happens, expect a rapid resurgence in demand, particularly in Sydney and Melbourne, where housing shortages are coupled with strong population growth.
As the market prepares for potential rate cuts, buyers could find themselves in a more favourable position to re-enter or upsize in the property market, further fuelling activity in key urban centres.
On the lending front, it’s encouraging to see 8 in 10 Australians exploring options beyond the big four banks. With better lending conditions on the horizon, this is good news for buyers and investors alike. Investor loans are already on the rise, jumping 18.8% nationally.
Australia’s Property Hotspot
South East Queensland stands tall as one of Australia’s most sought-after property markets, and for good reason. Alongside strong price growth and skyrocketing demand, the region is reaping the benefits of substantial infrastructure investments. Game-changing projects like the Cross River Rail and preparations for the Brisbane 2032 Olympic Games are driving unprecedented economic growth, sparking new opportunities for residents, businesses, and investors alike.
Adding to the appeal is Brisbane’s enviable proximity to the Gold Coast and Sunshine Coast, making SEQ a lifestyle powerhouse. From golden beaches to buzzing cityscapes, the region offers a mix of work-life balance that’s hard to resist. This blend of lifestyle perks and solid growth potential has earned SEQ the title of Australia’s “next big buying opportunity.”
With interstate migration fuelling consistent demand, South East Queensland is shaping up as a clear front-runner for 2025. Whether you’re an investor chasing returns or a family searching for a dream home, SEQ is the place to be.
What’s Next?
At ALC Projects, we’re ready to help our clients navigate this dynamic market. Whether you’re an owner-occupier, first-home buyer, or seasoned investor, the opportunities are there for the taking in 2025. With growth predicted across Brisbane, Adelaide, and beyond, now is the time to make your move.
Got questions about your client’s next property purchase or investment? Reach out to the team at ALC. We’re here to help you make informed decisions and achieve your property goals in 2025 and beyond.
