Four reasons why property prices are likely to keep rising

The election has been a landslide to labour.... 

What does this mean for property prices  in Australia?

In my view , it looks like property will keep on rising for four good reasons – two on the demand side of the equation and two on the supply side.

Demand

1. Interest rates appear to have peaked, and the Reserve Bank is expected to start cutting rates. This will give buyers increased confidence right now, and even more buyers are likely to enter the market if/when rates start falling.

2. Population growth is at record levels. The population grew by 659,800 people in the year to September 2023, according to the latest data from the Australian Bureau of Statistics (ABS). All those extra people are increasing the demand for housing.

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Supply 

3. Home building activity is too low. In the same year that 659,800 people were added to our population, we started work on only 165,602 new homes, according to the ABS. That’s well below the 263,920 homes needed for that many new residents (given that the average household contains 2.5 people, according to the most recent Census).

4. People are staying in their homes for longer, which is contributing to a shortage of for-sale properties, and therefore higher demand. In March 2025, a total of 251,000 properties were listed for sale across Australia, according to SQM Research. But in March 2019, there were 354,459 homes for sale. So despite the big increase in population over those five years, listings actually fell 27.8%.

In any market – whether for housing or oil – higher demand and lower supply leads to greater buyer competition. That’s why property prices are likely to keep rising in the foreseeable future.

So if you’re thinking about buying in 2025, it might be best to take action now.

Prices keep increasing - best time to buy is now 

Australia's median price keeps increasing. If prices keep rising at that rate, delaying your purchase by even six months could cost you tens of thousands of dollars.

It's generally a good idea to get a home loan pre-approval before you start looking for a property, so you can feel comfortable when making an offer.

Click here to book an appointment with Ivan Kaye.