10 insights into the investment property market

In recent news… rental growth stalls, it’s only cheaper to buy than rent in 6% of suburbs, nearly half of Australian suburbs at record price highs, rate cuts spark buyer interest, investors pocket $170k in gains in one year and crackdowns on rentals continue.   

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

1. Rental growth stalls. Rental price rises in most major capitals either stalled or saw their slowest growth in years in the June 2025 quarter, according to Domain’s Rental Report. Median rent for houses in the combined capital cities remained at $650 p/w – the same as in the March 2025 and June 2024 quarters. Median unit rents were also $650 p/w in both March and June 2025 quarters.

2. Rental affordability pressures remain. Cotality’s rent report noted national rents increased by 42.7% or $199 p/w over the past five years (annualised out, this is equivalent to an additional $10,350 p.a.). In contrast, the wage price index increased by less than half this rate – up 15.8% over the five years to March 2025. Pre-tax income directed to rental payments rose from around 26% in June 2020 to just under 33% in December 2024. According to Finder’s Cost of Living Pressure Gauge, 62% of renters were experiencing rent stress in June.

3. Vacancies inch higher. The national vacancy rate increased 0.1% in June to 1.3%, according to SQM Research. Nationwide, there were 39,027 residential properties vacant over the month. Advertised rental supply was broadly stable in June (0.2% higher than a year ago), with 71,537 national listings, according to Rent.com.au.

4. Home prices continue to grow. Almost 45% of suburbs across Australia have reached record-high dwelling values, according to Cotality’s Housing Chart Pack. The suburb-level data showed 44.8% of the 3,722 suburbs analysed were at a peak at the end of June 2025, with Queensland and WA leading the rebound. Australian housing values rose by 0.6% in June – marking a fifth straight month of growth. Monthly gains were recorded across almost every broad region of Australia, with Hobart (-0.2%) the only capital city or rest-of-state region to see a MOM fall. Meanwhile, according to PropTrack’s Home Price Index, national home prices rose 0.4% in June – marking a new record high.

5. Listings slide while asking prices ascend. Australia’s total residential property listings fell 8.8% to 234,067 in June, according to SQM Research. New residential property listings declined 9.1% over the month, while older listings (180+ days) fell 7.0%. National asking prices rose modestly in the four weeks to 1 July, with combined house and unit prices lifting 0.5%. The national median asking price for houses was $1,004,449 and $582,812 for units. Cotality noted that with just 32,970 new properties advertised for sale nationally over the four weeks to 29 June, the flow of freshly listed stock was at its lowest point for the time of year since 2020.

6. Buyer activity on the rise. Cotality estimated there were 531,457 sales nationally over FY25 – up 2.7% from the 517,597 seen in FY24. Nationally, properties were taking longer to sell with the median time on market rising to 35 days in the June 2025 quarter – up from 34 days over the March 2025 quarter and 29 days in Q2 2024. According to Ray White Group, the national median time to sell a house stabilised at 31 days, though market conditions varied dramatically across different regions.

7. Building activity bounces. ABS data showed total dwelling approvals rose by 11.9% cent in June to 17,076 (in seasonally adjusted terms). Private sector houses fell 2% to 9,142 and private sector dwellings excluding houses rose 33.1% to 7,594. ABS data also showed the total number of dwelling units commenced in the March 2025 quarter rose 11.7% to 47,645 dwellings. New private sector house commencements rose 6.3% to 27,923 dwellings and new private sector other residential commencements rose 21.8% to 18,161 dwellings.

8. Money matters. In what was a surprise move for many, including major banks, at its Board meeting on 8 July, the RBA decided to leave the official interest rate on hold at 3.85%. The Real Estate Conversation, SPI and Elite Agent gathered commentary on the decision from industry leaders. Cotality noted a rate cut in August would boost home values, but with limits. Realestate.com.au reported some lenders had cut variable interest rates ahead of the August RBA meeting.

9. On the radar for investors. The PropTrack Origin Renter Reality Report found 35% of renters would be willing to pay more for a home with smart energy features. Budget Pet Products data revealed regional landlords were more pet-friendly than their city counterparts. Cotality found families were paying up to $1.3 million more for houses inside sought-after public school catchments in Sydney and Melbourne. According to a report by Washington Brown and Hotspotting, house prices in some affordable suburbs had delivered investors up to $170,000 in gains in one year.

10. Need to know. Queensland’s new property disclosure laws begin on 1 August. WA Government announced the short-stay incentive deadline had been extended. NSW Government announced new legislation to crack down on misleading advertisements and restrict the types of personal information that can be collected in the rental process had been submitted to Parliament. Consumer Affairs Victoria’s Taskforce cracked down on auction underquoting in Melbourne’s north, while rental properties in Melbourne’s south-east were scrutinised over meeting minimum standards. WA expanded rent bidding inspections into the regions.  

*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.