10 insights into the investment property market

In this month’s news, rents rise while affordability improves; a third of all apartment rentals are set to pull in over $1K a week; loans pick up while number of investors do not and Tassie goes pet-friendly.

Each month we pull together 10 insights impacting the investment property market. Read on for this month’s instalment… 

1. Rental affordability ticks upwards despite price growth. The June 2025 quarter saw rental affordability improve according to REIA. Nationally, the proportion of income required to meet median rent decreased to 24.4%. Improvements were recorded in NSW, Victoria, Queensland, Tasmania, and the ACT, while affordability worsened across SA, WA, and the NT. According to Cotality, rents are up 4.1% over the year to August. National median house rents rose to $724 p/w and unit rents were up 0.5% to $572 p/w in August, according to SQM Research. 
2. Vacancies hold steady. With a total of 37,742 vacant properties across the nation over the month of August, residential vacancy rates held steady at 1.2%, according to data from SQM Research. Over the June quarter, vacancy rates increased in Brisbane (to 1.0%), Adelaide (to 0.8%) and Perth (to 2.7%), remained stable in Melbourne (at 2.5%), and decreased in Sydney (to 1.7%), Canberra (to 1.5%), Hobart (to 1.8%), and Darwin (to 2.6%). Listing times remained steady with a median of 18 days online for apartments and 20 days for houses according to rent.com.au.
3. Housing price growth blooms as average home tops $1M. ABS data showed the total value of the nation’s dwelling stock reached an estimated $11.5 trillion in the June quarter – a new high! The average price of a home nationally is now around $1.02 million, up 5.3% (or $47,900) over the past year. My Housing Market data showed the median house price in August was $1,219,208, and the median unit price was $688,852. Property Update reported median house prices could increase by up to $154,000 by the end of 2026.
4. Housing affordability improved for the second consecutive quarter. According to REIA, the proportion of median income required to meet average loan repayments fell slightly to 47.7% in the June quarter. NSW remained the least affordable, requiring 56.4% of income, followed by Queensland (48.3%), SA (46.6%), Victoria (44.5%), Tasmania (41.5%), WA (41.2%), and the NT (33.4%), while the ACT had the best affordability, with only 33.3% of income needed to meet mortgage repayments. Ray White Group noted strong price growth across Australia's most affordable properties thanks to FHB incentives, despite PropTrack/CommBank finding that First Home Buyers can only afford 17% of homes across the country. SPI also reported on the regrets of many First Home Buyers across the country.
5. High-rise highlights. Capital city median apartment rents are expected to grow by 24% over the next five years, according to CBRE. By 2030, 92% of 2-bed apartments will rent for more than $700 p/w, with one-third topping $1,000 p/w. Ray White Group noted the unit market continued to be resilient, driven by chronic undersupply and affordability-driven demand from buyers priced out of the housing market. While the NSW Government unveiled a $1 billion scheme to accelerate apartment construction in Sydney, Elite Agent reported that apartments are not a viable solution for housing affordability or increasing homeownership rates.
6. Listings and asking prices flourish ahead of spring. Australia’s total residential property listings rose to 239,044, according to SQM Research, up 5.2% in August. While auction activity ramped up (69.5% clearance rate), according to Cotality, properties were still taking longer to sell (rising to 33 days on average). Cotality also found that the June 2025 quarter saw around 97,000 resales, with 94.8% of sellers making a profit.
7. Investor hotspots see landlords make hundreds of thousands. Landlords in some suburbs are making up to $240,000 a year according to realestate.com.au. PropTrack identified Australia’s top 200 investor suburbs, with Queensland and WA dominating the list. Queensland also stood out in Hotspotting’s top 10 locations for future growth, while PIPA suggested Melbourne was the “best place to buy”, despite recent selloffs.
8. On the radar for investors. MPA noted investor lending had surged and API reported renewed momentum as investor lending accelerated and rents picked up. However, PIPA revealed investors had been leaving the property market in large numbers due to rising costs, tax changes and regulatory uncertainty. REINSW also noted investors were exiting the market and PICA cautioned investors against buyer’s agents, brokers, and accountants giving financial advice on social media.
9. Need to know. Pet-friendly rental reforms passed in Tasmania’s lower house. If the bill passes the upper house, Tassie landlords won’t be able to refuse a tenant’s request to keep a pet without tribunal approval. The State also reintroduced a bill to make it easier for tenants to affix furniture in their rental properties. REB reported NSW’s rental taskforce had ramped up its crackdown on non-compliance and issued nearly $240,000 in penalties in six months. Victoria passed building reforms to better protect consumers.
10. Market intel. Properties with solar panels command higher prices while granny flats and sheds top search trends, The Gold Coast was named Australia’s most over-stretched city and purpose-built student accommodation (PBSA) supply is set to reach 144,300 beds by 2027. Concerningly, Australian housing market value could drop by up to $770 billion due to climate change and an increase in extreme weather events. Despite this, buyers continue to seek out high-risk areas.

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