Still Growing — But Not Everywhere

Australia’s property market is still growing — but slowly.

In May 2025, national home values rose by 0.2% according to recent data from Cotality. Not a boom, but not a bust either. It’s steady. And that kind of consistency can be a great time to make a move — if you play it smart.

Perth Is Still on Fire

Let’s call it what it is: Perth is carrying the team.

  • 1.3% growth in May alone
  • 22% growth over the past year

If you’re an investor or first home buyer looking for growth and affordability, Perth is the market to watch.

Sydney and Melbourne Cooling Off

On the other hand, Australia’s biggest cities are losing a bit of steam:

  • Sydney dropped -0.1%
  • Melbourne dropped -0.2%

Now, that doesn’t mean they’re bad markets. In fact, it could be an opportunity for long-term buyers to get in at better prices.

Regional Areas Are Outperforming

It’s not just Perth. Regional markets are quietly winning, too.

  • Regional WA, SA, and QLD are leading the way
  • With more affordable prices and lifestyle appeal, these areas are attracting buyers priced out of capital cities

Units Are the Quiet MVPs

Houses are expensive. Rents are rising. That’s why unit prices are going up faster than houses right now.

For first home buyers, this is good news. Units are more affordable and often in better locations.

For investors, rising demand and limited supply are driving strong yields.

More Properties Are Hitting the Market

One silver lining for buyers: there’s more stock available, especially in Sydney and Melbourne.

This gives buyers more choice and less competition — a welcome change from the bidding wars of recent years.

But Fewer People Are Buying Right Now

Buying activity is slowing:

  • Lower clearance rates
  • Weaker sales volumes

That tells us a lot of people are on the fence — likely due to borrowing constraints and interest rate pressure.

Interest Rates Still Holding Buyers Back

Affordability is still a challenge, especially in the bigger cities.

Banks are keeping lending tight while interest rates remain high — so it’s harder to borrow big money. But that just means it’s time to get creative.

This is where TMAP’s Low Money Down deals and wealth-building strategies come in.

Investor Interest Is Still High — But Frustrated

Investors still want in. They can see the opportunity.

But the combo of higher property prices, tight lending, and capped borrowing power means not everyone can act right now.

This is why strategy matters more than ever.

What This Means for You

If you’re a first home buyer:

  • Focus on affordability — think units or regional areas
  • Act before others return to the market and competition spikes again
  • Use grants and incentives while they’re still available

If you’re an investor:

  • Chase growth and yield — think Perth, Adelaide, and regional hotspots
  • Look into dual-income and unit deals
  • Be strategic with borrowing — consider joint ventures or cashflow-positive deals

Final Word: Play the Game, Don’t Watch It

This isn’t a perfect market — and that’s the point.

Perfect markets attract everyone. Imperfect ones reward strategic buyers.

So don’t sit around waiting. The wealth game rewards those who act smart, act early, and act with purpose.

Let’s go.