Although price growth in some Australian property markets slowed toward the end of 2024, predictions for 2025 suggest prices will continue to rise.

According to Domain Group, national house prices are expected to increase by 4% to 6% in 2025, while unit prices may rise by 3% to 5%.

The forecast also includes a potential interest rate cut in the second half of the year, which could help stimulate market activity.

Domain’s Chief Economist, Dr Nicola Powell, notes that 2024 showed the housing market’s resilience, with Perth, Adelaide, and Brisbane leading the way in growth.

However, Powell highlights that with more listings on the market and some buyers holding off due to affordability concerns, the pace of price growth may remain slow in the early months of 2025.

A rate cut or targeted stimulus, she says, could ignite demand and boost prices.

“It may take one or two rate cuts to prompt buyers into action, and when these cuts happen will be key to shaping the market,” Powell explains.

“We could see a year of two halves, with a slower first half and a stronger second half, especially for the unit market.”