Australia's investment hotspots in 2025 - every state and territory
Of all the external influences on the property market, one key driver will determine the opportunities to buy and sell in 2025.
Interest rates.
The nation’s current cash rate has put households under pressure. The dam is expected to burst come May, when the Reserve Bank is forecast to provide Aussies with their first rate cut in two years.
National real estate agency LJ Hooker has released a list of hot spots in regional and metro areas for this year, caveating the suggestions with a hint that rates will be remain the main influence.
“Homeowners are likely to look to capitalise on recent price growth in the year ahead, while buyer demand should remain consistent, driven by strong population growth, steady employment markets, rising wages, low rental vacancy rates and a severe shortage of newly constructed houses,” the agency said in a statement.
Ongoing inflation levels, global uncertainty and strong rates of employment will likely to stay the hand of the RBA until at May, LJ Hooker Group head of research Matthew Tiller said.
“Interest rates will heavily influence market performance in 2025, and the impact will be dependent on the timing and depth of rate cuts,” Tiller said in a statement.
“An earlier announcement and a significant reduction will likely strengthen the market, while prolonged rate stability at elevated levels may soften conditions.
“Some buyers are entering the market early, anticipating increased competition once rates are cut. Others are waiting for reduced interest rates to improve borrowing capacity and ease household budget pressures.”
When the time comes to buy, these are the areas Tiller believes will provide growth, hand-in-glove with affordability, infrastructure and the stock to meet demand.
New South Wales
“Investors and owner-occupiers upgrading to larger homes will dominate to take advantage of high listings and slower price growth,” the agency said. “First-home buyers are active in outer suburbs.”
City buyers should set their GPS to: Mosman, Freshwater, Blacktown, Wattle Grove
Three changing?: Look to Orange and Warrawong
Victoria
“Improving rental yields and growing affordability are set to draw interest from investors and first-home buyers,” LJ Hooker reports.
City slickers should check out: Werribee, Frankston
Regional hubs on the radar: Geelong, Ballarat
Queensland
“Infrastructure projects ahead of the 2032 Olympics continue to attract investors and interstate migrants which will see price growth remain above average.”
Metro opportunities: Coorparoo, Springfield Lakes
Regional zones to see: Toowoomba, Nambour
Western Australia
Rental yields are strong and that has drawn investors. “There is an undersupply of new homes and listings, although solid economic activity will see price growth remain strong,” the agency wrote.
The metro go-to: Innaloo
Regional sizzle spots: Busselton, Geraldton
South Australia
Owner-occupiers, investors and retirees have flocked to Adelaide and that will not change this year, the agency said. More listings will “moderate” price growth.
If you like metro addresses: Hillcrest, Seacliff
Out of town: Port Lincoln
Tasmania
“Steady” is the word used to describe the market expectation for 2025. A rate fall will spur activity. Retirees and lifestyle buyers are looking to listings in country and coastal postcodes.
City suburb to check out: Kingston
Regional opportunities are in: Devonport, Launceston
Northern Territory
The price to enter the market is low and that provides appeal. “There are solid levels of investment in energy, mining and defence moving into the NT over the coming years,” the agency said.
Metro buyers may want to consider: Parap, Zuccoli
For a regional change, try: Braitling
Canberra
Rate cutes may compel investors to return to the capital city market in 2025.
The suburbs to look at: Kambah, Wright, Amaroo
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