Australia’s Property Market Update: Sunshine Coast Resilience, Price Trends & The Rental Crisis Unfolding
by Leigh Martinuzzi MPG – eXp Realty Australia
Another week, another market update—this time with fresh insights from CoreLogic’s latest Housing Chart Pack and the REA Rental Affordability Report. Australia’s real estate landscape continues to shift, with rising property values, slowing sales activity, and ongoing challenges in the rental market. Here’s what’s happening right now.
The total value of Australian residential real estate now stands at $11.2 trillion, reinforcing property’s dominance in the nation’s financial system. With 55.9% of household wealth tied up in real estate, homeownership remains a significant priority for Australians, despite ongoing affordability concerns.
Over the past month, national home values edged up by 0.3%, helping offset a three-month rolling decline of -0.1%. While price growth has slowed, the market is stabilising rather than heading into a downturn. Over the past year, dwelling values have increased 3.8%, though the pace of growth is far more moderate than previous peaks.
Regional markets remain a bright spot, recording 1.0% growth over the past three months, compared to a -0.4% decline in capital cities. Buyers continue to seek lifestyle-driven locations, particularly in Southeast Queensland and coastal regions, where affordability is still better than in Sydney and Melbourne.
Sales activity has softened, with CoreLogic estimating 40,085 transactions nationwide in February, taking the rolling 12-month sales count to 532,244—a 6.2% increase on last year. However, activity has declined over the past three months, and compared to last year, this summer’s sales estimates were down -6.6% and -9.5% below the five-year average.
At the same time, new listings remain low, currently sitting -2.9% below this time last year and -3.1% below the five-year average. This tells me that there are just as many sellers sitting on the fence as there are buyers weighing up their options. While demand is still there, the hesitation from both sides of the market is keeping stock levels tight.
Looking at individual city performance, Brisbane and Perth continue to lead, with stronger price growth than other capitals. Melbourne remains the weakest performer, barely moving over the past 12 months, while Sydney’s property values have held relatively firm, though affordability constraints are keeping a lid on activity.
Auction clearance rates reflect the fragmented nature of the market. Last week, Sydney led with a 71% clearance rate, followed by Melbourne at 67%, while Brisbane saw just 36% of properties sell under the hammer. No surprises there—Queensland is not traditionally an auction-driven market. Even with the Reserve Bank’s recent 0.25% rate cut, buyers remain cautious. While the cut improves borrowing capacity, many are waiting for further reductions before jumping in.
Come April 1st, we may see another rate cut, which in my opinion, could be the trigger for increased market activity. If that happens, buyers who have been sitting on the sidelines may start moving with more confidence.
But while property prices stabilise, the rental market is where affordability pressures are really mounting. The latest REA Rental Affordability Report highlights that Melbourne has now become Australia’s most affordable capital city for renters, despite the city’s relatively higher incomes compared to rental costs.
Across the country, rents continue to rise, and vacancy rates remain critically low, making it harder than ever for tenants to secure housing within budget. With population growth accelerating and housing supply struggling to keep pace, it’s unlikely we’ll see much relief for renters in the near future. This could push more tenants toward homeownership, but affordability remains a major barrier.
So, where to from here? The real estate market is shifting, but opportunities remain. Regional areas are proving resilient, and while capital city growth has slowed, well-located properties continue to attract strong interest. The rental market remains one of the biggest challenges, and it’s clear that supply shortages require urgent attention.
At a policy level, the government remains reactive rather than proactive, lacking real momentum in addressing the housing crisis. Politicians may use these issues as election talking points, but without decisive action, long-term solutions remain out of reach. We’ve seen housing challenges before, but the current supply shortage is unlike anything we’ve experienced.
With real estate wealth being the largest asset class in the country, it’s unlikely that property will lose its status as a cornerstone of the Australian economy. In my opinion, it’s one of the few things keeping the economy stable—which means any major policy shift affecting housing could have widespread consequences.
For those looking to buy or sell in 2025, the key is to stay informed and act when the right opportunity arises. If you’d like to discuss your options, reach out to me and the team at Martinuzzi Property Group—we’re here to help. Connect here – CLICK.
