The property market is on the move – investors are chasing cheaper growth markets, listing numbers are surging, and housing dissatisfaction is at an all-time high. This week, we break down where the smart money is moving, what’s driving vendor confidence, and how investor trends are reshaping local markets.

Where Property Investors Are Buying in 2025 – The Shift to Cheaper Markets

Rising property prices and interest rates in NSW and Victoria are pushing investors to look beyond their home states for better deals. Recent data reveals a growing trend of NSW and Victorian investors shifting their focus to Queensland, South Australia, and Western Australia in search of affordable properties with strong growth potential.

The Investment Migration: Where Are Buyers Going?

In 2024, NSW investors purchased 14.3% of their properties in Victoria and 14.1% in Queensland, a notable increase from previous years. Meanwhile, Victorian investors are increasingly looking to Queensland, as they face limited affordability in their own market.

Why the Shift?

• Lower Entry Prices: Sydney’s median house price is 1.65M, while some Queensland markets still offer homes below 500K.
• Higher Yields: Investors are securing 5% rental yields in these markets, making cash flow more manageable.
• Stronger Growth: Certain suburbs in Queensland saw house prices rise over 40% in 2024, far outpacing growth in Sydney and Melbourne.
• Future Lifestyle Potential: Some investors are buying with an eye on retirement, choosing homes they may move into later.

The Suburbs Investors Are Targeting

NSW investors are targeting affordable outer-ring Melbourne suburbs like Tarneit, Craigieburn, and Roxburgh Park as well as Brisbane’s Beenleigh and Logan Village. Meanwhile, Victorian investors are looking at Townsville, Nerang, and Brisbane’s fringe, where growth has been strongest.

What This Means for Local Buyers & Investors

For those considering where to invest next, the data shows that affordability, yields, and growth potential are driving decision-making more than ever.

The Great Australian Disillusionment: Housing Satisfaction at Record Lows

Australia’s housing crisis is deepening, with dissatisfaction levels among the highest in the OECD, second only to Turkey. A new Gallup survey reveals a grim outlook – especially for younger Australians, whose dreams of homeownership are slipping further out of reach.

Young Australians Hit the Hardest

Since Gallup began tracking housing satisfaction in 2006, only 16% of Australians aged 18 to 34 are satisfied with the availability of good, affordable housing – one of the lowest rates ever recorded globally. This puts Australia in the same league as Hong Kong in 2019 (11%) and Iran in 2008 (13%), highlighting the scale of the affordability crisis.

Even Older Australians Are Feeling the Pinch

Traditionally, homeownership has been a given for older generations, yet only 35% of Australians aged 65+ are currently satisfied with local housing availability – despite more than 80% owning their own homes. This suggests that the housing crisis isn’t just about affordability for buyers – it’s affecting retirees, renters, and communities at large.

What This Means for Investors & Homebuyers

High dissatisfaction signals continued housing demand. With many locked out of homeownership, rental demand will remain strong, reinforcing positive yield opportunities for investors.

Affordability concerns could drive policy changes. The government may introduce new incentives or affordability schemes, potentially creating investment opportunities in key markets.

Australia’s property landscape is shifting. As traditional homeownership becomes more challenging, we may see new models of property ownership and financing emerge.

Property Listings Surge in January: A Sign of Market Recovery?

The Australian property market is off to a strong start in 2025, with SQM Research reporting a 4.5% increase in total property listings for January. This brings the total to 243,642 listings, marking a 10.3% year-over-year rise – a strong indicator of renewed market confidence and potential opportunities for investors and buyers alike.

Property Listings by City

Most major cities saw a substantial increase in listings, pointing to a broad-based market recovery:

Sydney – +7.3% MoM | +19% YoY (29,791 total listings)

Melbourne – +2.1% MoM | +15.9% YoY (37,873 total listings)

Brisbane – +9.8% MoM (16,241 total listings, fastest-growing capital)

Perth & Adelaide – +7.9% and +6% MoM (Adelaide saw a slight YoY decline)

Canberra – +30.7% YoY (highest national growth)

Darwin – The only capital to see both monthly & yearly declines

New Listings Surge – Is Seller Confidence Returning?

New listings nationwide – +2.9% MoM | +18.1% YoY (Total: 53,019 new properties)

Sydney – +61.5% surge in new listings (Leading the country in fresh stock)

Brisbane & Melbourne – Also saw strong gains in new listings.

This influx of new properties suggests that vendors are regaining confidence, or that some sellers are looking to exit before potential economic shifts.

Old Listings & Distressed Sales: A Mixed Picture

Properties listed for 180+ days – Increased, indicating slower sales in some markets

Perth – Notable rise in older listings, signalling potential buyer caution

Distressed listings – +1.6% MoM, but still 8.9% lower YoY (Suggesting improving financial stability for sellers)

Market Outlook: What’s Next?

According to SQM Research’s Managing Director, Louis Christopher, the RBA’s upcoming meeting and potential rate cuts could further boost confidence in 2025. He projects that housing prices could rise 6-10% this year if economic conditions remain favourable.

What This Means for You:

• Buyers & Investors: More stock on the market means greater selection and potential bargaining power.
• Sellers: Rising listings mean more competition, so pricing strategy will be key.
• Market Timing: If interest rates drop, buyer demand could surge, driving prices higher in the months ahead.

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