Navigating the propety market in 2025

In a dynamic property market, understanding the fundamentals is key to making smart decisions.

Emily Wood, Executive General Manager Development at Frasers Property Australia, shares expert insights gathered from her 25-year career in the property industry.

By Emily Wood, Executive General Manager Development

Australia’s enduring love affair with property is no secret. From sprawling suburban homes to sleek inner-city apartments, real estate has always been a cornerstone of the Australian dream. But in the dynamic, sometimes volatile world of property, knowing when to make your move can be as challenging as predicting the weather. Market cycles are inevitable, but for most of us, property is a long-term game. If you’re buying a home to live in, today’s market fluctuations matter less than other key factors.

Supply and demand drive the market

If you’ve been following the news over the last couple of years, you’ll be aware that Australia’s property market is grappling with a well-documented housing shortage. It’s a crisis that’s been decades in the making but has become particularly acute in the post-pandemic era.

Population growth and smaller household sizes combined with rising construction costs and lengthy development approval cycles have all contributed significantly to the imbalance between supply and demand. The result? Upward pressure on both property values and rents, making it challenging for many Australians to achieve homeownership or secure affordable rental accommodation.

Recognising the urgency of the issue, governments and the private sector are taking steps to boost housing supply. Initiatives range from streamlining planning processes to incentivising new construction, increasing urban density, and exploring innovative building technologies. Overtime, each of these will help to ease the bottleneck, but it’s important to be realistic. The housing crisis is a complex issue with deep roots, and its resolution will require sustained effort over many years, even decades.

In the meantime, the fundamental principle of supply and demand continues to exert its influence on the market. The current undersupply of housing, coupled with strong demand driven by population growth and economic stability, suggests that property will continue to be Australia's favourite conversation and its most sought-after commodity. While challenges undoubtedly exist, those who have the means and the desire to buy quality properties in sought-after locations will likely benefit over the long term. One last thing to say about supply and demand: the property market is not one monolithic national market. In fact, there are many markets across different parts of the country, and in different parts of a single city where conditions can vary significantly. So, it’s crucial to do your research, think locally, and source expert advice when deciding where to buy.

Economic factors provide the wind in your sails

The fortunes of the property market wax and wane with the cycles of the broader economy. Interest rates — and whether they’re going up, down, or sideways — tend to get the lion’s share of attention. But they’re only part of the story. The unemployment rate, wages growth, and available credit also play very big roles, and are often intertwined in their effect. For example, when jobs are plentiful and people are in stable employment, banks feel fairly confident in lending money. When the opposite is true, the availability of credit has a habit of drying up quickly.

The good news is that Australia’s unemployment rate remains low and rising wages have helped keep the cost of living in check. This has helped underpin confidence and growth in the property market. Add to that a stable political environment and Australia’s appeal as a destination for education and migration, housing demand, particularly in key urban centres, continues to climb.

Choosing well

The old adage holds true: location matters. But it's not just about proximity to the CBD or the beach. It's about finding a neighbourhood that clicks with your lifestyle and future aspirations.

Things to consider include physical factors like access to shopping, schools, and transport, as well as parks, cafes, and civic spaces. But some of what makes a property desirable can also include “the vibe”. It can be difficult to define, but you know it when you see it. A bustling High Street, friendly neighbours that look out for each other, well-tended homes, and popular local landmarks are some of the elements that give places a distinctive identity and desirable character. These are the neighbourhoods that ten d to hold their value and offer a high quality of life.

I might be a little biased but I think that self-contained neighbourhoods that offer high levels of amenity and convenience, such as Ed.Square in Sydney’s south west and the walkable inclusive communityity of Midtown in Macquarie Park are fantastic Frasers Property examples. As are lifestyle locations like The Waterfront, Shell Cove on the NSW south coast and Port Coogee in Western Australia. Masterplanned communities that seamlessly blend high-quality public and private spaces such as Mambourin and Bradmill in Melbourne are setting new standards, while elevated havens like The Quarry in Brisbane and close-knit suburban communities like Brookhaven all demonstrate enduring appeal, each in their own unique way.

In property, as in life, knowledge is your most valuable asset. Do your homework. Research different areas, property types, and market trends. Understand the buying process and associated costs. Engage with experienced professionals like real-estate agents, mortgage brokers, and financial advisors. Their expertise can guide you through the complexities of the market and help you make informed decisions. And if you’re planning on buying new property, look for a developer with a proven history of delivering quality projects and creating thriving communities. A developer with experience and a commitment to customer satisfaction can offer peace of mind and ensure your investment is in safe hands.

As we hit the middle part of this decade, the fundamentals of the property market look to remain strong for many years to come. With a century of history under our belt, Frasers Property Australia remains committed to creating the next generation of distinctive and sought-after neighbourhoods where walkable streets, vibrant public spaces, and thriving local businesses all contribute to a sense of place where people truly feel they belong. Because in the end, quality of life is the most essential property market fundamental of all.

You can find more property market insights, community updates and inspiring stories in our latest ‘Live Proud’ magazine edition.