10 insights into the investment property market

In recent news, rents soften as vacancies rise; home prices continue to grow – and may double in five years; smaller markets and regional areas lead the price rises; listings take a winter break; investors dominate the market; student accommodation appeals to investors; WA and Queensland reign supreme in the regions; RBA cut boosts confidence; and what Labor’s Federal election win means for property.

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

1. Rents soften as vacancies lift. National combined rents fell 0.7% in May to a median of $649 p/w, according to SQM Research. Asking rents for houses were down 1.1% to $721 p/w, while unit rents held steady at $567 p/w. National vacancies rose 0.2% to 1.3% in April. Overall, there were 39,378 residential vacancies nationwide over the month. Research from Ubank and Cotality revealed 495 house markets and 597 unit markets where servicing a mortgage was cheaper than paying Australia’s median weekly rent of $659.

2. Home values continue to rise. Australian dwelling values were up 0.3% in April – recording the third straight month of growth to a new record high, according to Cotality. The rise in values added approximately $2,720 to the median value of a dwelling over the month. A lift in home values was recorded across every capital city, with Brisbane, Adelaide and Perth values at record highs. Both national capital city median house ($1,184,459) and unit ($677,033) prices rose by 0.6% in May, according to My Housing Market. PropTrack’s Home Price Index showed that the median home price increased to a new record high in April – rising 0.2% over the month to reach a median value of $805,000.

3. Home prices tipped to double by 2030. Property values across Australia could double in many areas by 2030 if current growth trends continue, according to PropTrack. If prices continue to rise as they have been, buyers could expect to pay around 61% more by 2030 for a house in Sydney, 68% in Brisbane, 17% in Melbourne, 75% in Adelaide, 66% in Perth, 41% in Hobart, 30% in Darwin and 40% in Canberra.

4. Smaller markets, outer suburbs, units and regions lead price increases. Hotspotting’s Price Predictor Index revealed that smaller markets, such as Darwin and regional SA, surged in price growth during autumn 2025. Cotality data indicated the strongest housing market conditions were concentrated in the fringes of each capital city, with lower-priced properties experiencing the highest growth rates over the past year.

5. Buying & selling. According to SQM Research, total nationwide residential property listings declined 3.6% in April to 242,435 properties. Domain’s April 2025 Market Insights showed new supply reached a four-month low. Ray White Group noted listings were usually 2% lower in winter months – with some regions seeing listings dip by up to 20%. The auction market responded positively to the rate cut, according to Cotality. New home sales surged by 16.5% in April, reaching a 12-month high, according to HIA. Building approvals surged in the March 2025 quarter to be 20.8% higher than a year ago, the association also noted. Sentiment in the residential property market improved over the March quarter, according to NAB. More than 36% of Australians believed now is the time to buy a property, according to Finder’s Consumer Sentiment Tracker.

6. Investors re-enter market three times faster than owner-occupiers. In the year to March 2025, 196,241 new investor loans were written – just 3% shy of the all-time peak set in June 2022 when buyers were looking to lock in ultra-low fixed rates, according to Money.com.au’s Mortgage Insights Report. The report also found investors were re-entering the property market at a pace three times faster than owner-occupiers. ABS data showed there were 47,218 new investment loans approved in the March quarter with a value of $32.4 billion and an average loan size of $673,033.

7. On the radar for investors. Both Knight Frank and Ray White Group noted student accommodation is hot property for investors. API reported three-bedroom units were a new target for investors. According to research from Robert Walters, 54% of Australian professionals were planning to relocate in search of better value, higher pay, or improved affordability. Perth recorded the highest annual growth among capital cities, according to the PIPA National Market Update. Hotspotting identified the top 10 locations for high rental yields, strong growth potential, and affordability.

8. Regions wrap. Data from Cotality showed regional markets (up 1.5%) continued to outperform capital cities (up 1%) over the April 2025 quarter. PRD’s Smart Moves Regional Edition identified the top 10 affordable regional markets. PRD’s Q1 2025 Property Market Update suggested WA’s Karratha was the next investor hotspot, while REIWA noted interstate investor activity had seen Geraldton boom. Muval’s Family Relocation Report identified regional Queensland as Australia's most popular destination for relocating families.

9. RBA cuts interest rates, boosting confidence. As widely anticipated, at its Board meeting on 20 May, the RBA cut the official cash rate by 0.25% to 3.85%. REIA, among others, predict further cuts this year (NAB forecasts five cuts). According to analysis by Canstar, borrowers with a loan size of $600,000 could see a $91 drop in monthly repayments if their bank passes the cash rate on in full, while borrowers with a loan of $750,000 are expected to see a decrease of $114 and those repaying a $1,000,000 loan would see their repayments fall by $152. CoreLogic noted the cut would support housing markets, but that a boom in housing prices was unlikely until affordability improved.

10. Property need-to-know. Labor wins Federal election – property industry demands action – and what the win means for property (podcast) including the expectation it will fuel house prices. Energy-efficient homes sell for 14.5% more nationally. New and renovated properties in high demand across Australia. Units with balconies command up to an extra $400k. Walkability matters for property investment. Slower dwelling price growth attributed to construction shortfall. Melbourne and Syndey make it into global top 10 cities ranking. Brisbane named top two city in the world for cost of living. South Australia topped the HIA Housing Scorecard. Perth named Australia’s top-performing luxury property market. 

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