Cam McLellan and Allister Lewison share their insights and predictions for the Australian property market in 2025, highlighting key drivers, emerging trends, and practical advice to help property investors kickstart the New Year with confidence.

Market Trends:

• Supply and Demand: A housing shortage and rising immigration are driving prices upward.
• Interest Rates: Predictions suggest a potential decline in interest rates, which could lead to significant property price growth (1% rate drop = 10% price increase).
• Affordability Challenges: While inflation eases, high interest rates still limit borrowing capacity. However, property prices continue to rise, even under these constraints.

Capital City Analysis:

• Melbourne: Despite being undervalued compared to Sydney, Melbourne's market is poised for a rebound as investor equity from other cities flows in. Land tax concerns are viewed as minor compared to potential capital gains. Sydney: Serves as a lead indicator for market trends, with strong business-driven growth. Brisbane: Experiencing record buyer activity, indicating a hot market. Perth: Previously avoided by investors but now showing high growth potential due to rental increases and undersupply in specific pockets.
• Buyer Sentiment:
• Confidence in property as a long-term investment is rising, driven by positive media narratives and shifting perceptions.
• Consumer sentiment is at its highest in three years, indicating growing optimism.

Predictions for 2025:

• Strong price growth across all major markets, particularly in Melbourne, Brisbane, and Perth.
• Investors who act now are likely to benefit significantly, avoiding the regret of missing opportunities.

Actionable Advice:

• The year-end holiday period is an ideal time to plan and prepare for investments.
• Understand the tangible benefits of property gains (e.g., leveraging equity for further investments or life goals).

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