Sydney and Melbourne Property Prices Expected to Decline in 2025, Perth Forecast to Lead Growth

National housing prices are projected to rise modestly, driven by smaller capitals, while Sydney and Melbourne face continued affordability challenges.

• SQM Research forecasts national property prices to rise by 1-4% in 2025, with Perth, Brisbane, and Adelaide leading growth.
• Sydney and Melbourne property prices are predicted to decline by 1-5%, attributed to affordability issues, rising listings, and distressed sales.
• Perth is expected to outperform with 14-19% growth, followed by Brisbane (9-14%) and Adelaide (8-13%), driven by population growth and housing shortages.
• Interest rate cuts by the Reserve Bank of Australia, anticipated mid-year, may stabilize price falls in Sydney and Melbourne but are unlikely to offset early-year declines.
• Alternative scenarios suggest that no rate cuts or slower population growth could exacerbate declines in Sydney and Melbourne, while still supporting growth in smaller capitals.

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The Guardian The Sydney Morning Herald The Sydney Morning Herald Australian Broadcasting Corporation