Australia could be on the brink of a scorching summer in the property market, with buyers energized by the prospect of potential interest rate cuts expected in 2025.
Traditionally, the real estate market slows in December before picking up momentum after the Christmas and New Year holidays. However, this summer may break the trend as homeowners and buyers closely monitor hints of interest rate reductions, which are anticipated to kick off in the first half of next year.
A potential drop in interest rates could put more money in household budgets, possibly pushing home prices even higher.
According to REA Group senior economist Eleanor Creagh, summer typically sees reduced market activity.
“Even so, home prices have been on the rise for nearly two consecutive years, and we expect this trend to persist into next year as market activity rebounds after the holidays,” Ms. Creagh noted.
“However, price growth may slow towards the end of the summer compared to last year. With affordability challenges, sustained high interest rates, and increased stock availability from the spring market, the pace of growth is likely to moderate.”
Real estate trends and conditions differ across Australia’s capital cities, so here’s a closer look at Brisbane’s summer property outlook.
Brisbane Summer Property Market
Brisbane is poised for strong buyer activity this December, particularly from interstate and expatriate buyers, says Alex Jordan of McGrath Estate Agents – Paddington.
“It’s common for Brisbane real estate to see heightened interest from interstate and expat buyers as the calendar year winds down,” Mr. Jordan explained.
“Recently, I’ve worked with buyers from New South Wales, Victoria, and even Singapore. Brisbane’s market remains in shorter supply compared to Sydney and Melbourne, and we’re witnessing stronger buyer activity than in our southern counterparts.”
Brisbane’s housing market has experienced over 12% growth in the past year, and the trend is expected to continue.
“There’s consistent activity across all price points,” Mr. Jordan added, “but the $1 million to $2 million range in inner-city suburbs remains particularly hot, with many buyers actively searching for available properties.”
As Brisbane continues to outperform other capital cities, the stage is set for an eventful summer in the property market.
