{"id":41664,"date":"2025-03-27T15:58:49","date_gmt":"2025-03-27T08:58:49","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=41664"},"modified":"2025-03-27T15:58:49","modified_gmt":"2025-03-27T08:58:49","slug":"australias-property-market-in-2025-a-smarter-path-to-ownership-and-investment","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/australias-property-market-in-2025-a-smarter-path-to-ownership-and-investment\/","title":{"rendered":"Australia\u2019s property market in 2025: A smarter path to ownership and investment"},"content":{"rendered":"

Industry experts point to falling rates, new supply, and smarter due diligence as key to unlocking long-term value for Aussie buyers<\/span><\/span><\/p>\n

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Buyers and investors need to go beyond the unit itself and invest time before committing. Super8\/Shutterstock<\/figcaption><\/figure>\n

Australia\u2019s property market is seeing steady growth and notable shifts in both affordability and investment opportunities. With interest rates expected to ease and housing demand outpacing supply, especially in cities like Brisbane, Adelaide, and Perth, buyers and investors alike are positioning themselves to capitalise on the evolving landscape. <\/span>\u00a0<\/span><\/p>\n

But experts say that the real risks may lie beyond the initial purchase\u2014particularly in strata ownership, where hidden costs and building defects can quickly turn a \u201cgood deal\u201d into a financial burden. <\/span>\u00a0<\/span><\/p>\n

“Affordability discussions often focus on entry costs: purchase price, interest rates, and financing. But the real financial risks lie in what happens after you own the property,” says Amelia (Dan) Tian, Director of W T Newey & Co. and a member of the PropertyGuru Asia Property Awards (Australia) judging panel. <\/span>\u00a0<\/span><\/p>\n

Tian brings a unique perspective as the only judge focused on the post-purchase stage, what she calls the “hidden layer” of affordability. <\/span>\u00a0<\/span><\/p>\n

More than just price: Understanding strata ownership risks<\/span><\/b>\u00a0<\/span><\/p>\n

While many buyers are drawn to the perceived accessibility of new apartments, Tian warns that strata living comes with overlooked risks, particularly in poorly managed or defect-prone buildings. <\/span>\u00a0<\/span><\/p>\n

“Imagine this: you buy a brand-new apartment, thinking you have secured a great investment or a dream home. But soon after moving in, you discover water leaks, mould spreading throughout your property, or even worse, structural cracks that make the building unsafe, just like a couple of real cases that occurred in Sydney,” she explains. <\/span>\u00a0<\/span><\/p>\n

These real-life scenarios can lead to unliveable conditions, plummeting resale value, and skyrocketing special levies. <\/span>\u00a0<\/span><\/p>\n

“Even if you did not cause the issue, you are financially responsible for fixing it… Unlike mortgage repayments, you cannot negotiate your way out of strata levies\u2014they must be paid,” Tian adds. <\/span>\u00a0<\/span><\/p>\n

She urges 2025 buyers and investors to go beyond the unit itself and invest time in due diligence, reviewing strata records, sinking fund health, and developer reputations before committing. <\/span>\u00a0<\/span><\/p>\n

Market momentum: More supply, strong demand, and strategic opportunity<\/span><\/b>\u00a0<\/span><\/p>\n

While post-purchase risks are real, the broader market outlook remains strong, particularly in lower-density and regional markets. According to Karen Kong, Head of Property Lending at Bendigo Bank and a fellow PropertyGuru Asia Property Awards (Australia) judge, a surge in listings\u2014especially in the AUD5 to AUD15 million bracket\u2014is offering more choice for buyers. <\/span>\u00a0<\/span><\/p>\n

“It has been an interesting start to the Australian property market this year. Initially slow, the market is now witnessing a notable surge in supply,” Kong says. <\/span>\u00a0<\/span><\/p>\n

According to <\/span>realestate.com.au<\/span><\/a>, some Sydney suburbs are now cheaper to buy than rent, prompting more renters to consider homeownership. At the same time, API Magazine reports that undersupply remains a long-term concern, pushing up prices in high-growth areas. <\/span>\u00a0<\/span><\/p>\n

“Overall, property prices are expected to continue growing given a persistent undersupply of housing, particularly in cities like Brisbane, Adelaide, and Perth, where demand is outpacing supply,” Kong explains. <\/span>\u00a0<\/span><\/p>\n

With interest rates expected to fall further, borrowing may become more accessible in 2025, though affordability will remain a challenge, driving some buyers toward apartments and townhouses. <\/span>\u00a0<\/span><\/p>\n

For investors, Kong suggests focusing on locations with strong population growth and infrastructure development. <\/span>\u00a0<\/span><\/p>\n

“Careful market research and strategic planning will be key to making the most of the current conditions,” she advises. <\/span>\u00a0<\/span><\/p>\n

Australia\u2019s best developers recognised on the global stage<\/span><\/b>\u00a0<\/span><\/p>\n

Amid the evolving market, Australia\u2019s top property developers are earning global recognition. At the <\/span>19th PropertyGuru Asia Property Awards Grand Final 2024<\/span><\/a>, several Aussie firms competed against 15 other markets across Asia and the Middle East\u2014and won big. <\/span>\u00a0<\/span><\/p>\n